Assinatura gratuita
The Daily São Paulo

São Paulo news, every day

News

How São Paulo's Public Universities Lost Ground: The Decades of Underfunding That Led to Today's Crisis

From the glory days of the 1980s to competing with private institutions, the city's state universities reveal a story of shrinking budgets and shifting priorities.

By São Paulo News Desk · Published 30 June 2026, 1:17 am

2 min read

How São Paulo's Public Universities Lost Ground: The Decades of Underfunding That Led to Today's Crisis
Photo: Photo by Th2city Santana on Pexels
Traduzindo…

The campus of the Universidade de São Paulo sprawls across nearly 800 hectares in the Butantã neighbourhood, a testament to ambition from another era. Yet walking through its corridors today tells a different story—one of deferred maintenance, aging laboratories, and a system struggling against the weight of decades of political neglect.

The trajectory is worth understanding. Through the 1970s and 1980s, São Paulo's public university system—anchored by USP, UNICAMP, and UNESP—was the undisputed engine of Brazilian research and innovation. The institutions attracted top talent globally and produced generations of leaders across medicine, engineering, and the social sciences. State funding flowed relatively generously, reaching nearly 15 per cent of São Paulo's state budget at its peak.

Then came the 1990s. Economic stabilisation plans, privatisation waves, and shifting political winds began eroding that commitment. By 2010, state funding had dropped to around 9 per cent of the budget. The decline accelerated through the 2010s amid fiscal crises and competing demands—everything from healthcare deficits to infrastructure projects. Today, the three institutions compete fiercely for resources that haven't kept pace with inflation or enrolment growth.

The numbers tell the story starkly. A researcher at UNICAMP's campus in Campinas earns roughly 30 per cent less in real terms than their counterpart did in 2005. Graduate scholarship stipends, which once attracted talent from across Latin America, have become inadequate for living costs in São Paulo's increasingly expensive neighbourhoods like Vila Mariana and Pinheiros, where many graduate students seek accommodation.

Meanwhile, private institutions—from the Fundação Getulio Vargas in Centro to newer players in the suburbs—have expanded aggressively. They offer flexibility and modern facilities, peeling away middle-class students who might have chosen public universities a generation ago. This brain drain has real consequences: research output has plateaued while peer institutions in Chile and Mexico have surged ahead.

The infrastructure deterioration is visible. Lab equipment at some USP facilities dates from the early 2000s. Library renovations at the main campus on Avenida Luciano Gualberto have been postponed repeatedly. Graduate housing, once a draw, has waiting lists stretching years.

Yet this crisis didn't emerge overnight. It's the cumulative result of successive governments viewing public universities not as strategic investments but as budget line items to be managed during downturns. Understanding that trajectory—from state priority to financial afterthought—is essential to any serious discussion about São Paulo's educational future.

This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.

Topic:#News

How does this story make you feel?

Spread the word

See something wrong? Suggest a correction.

Have your say

Loading comments…

About this article

Published by The Daily São Paulo

This article was produced by the The Daily São Paulo editorial desk and covers news in São Paulo. See our editorial standards for how we use AI.

The Daily São Paulo brief

The day's São Paulo news in a 2-minute read, every weekday morning. Free.

By subscribing you agree to receive emails from The Daily São Paulo and accept our Privacy Policy. Unsubscribe anytime.

Daily brief

Enjoyed this? Wake up to São Paulo news every morning.

Free, in your inbox before 7am. Weekdays.

By subscribing you agree to receive emails from The Daily São Paulo and accept our Privacy Policy. Unsubscribe anytime.

More from The Daily São Paulo

More in News

Enjoyed this story? Get tomorrow's briefing free.