One bright spot:  possibility of regulatory relief

March 17, 2010

 

Today, Dr. Darryl G. Greer, head of the Association that represents the nine state colleges and universities called "disappointing and harmful to the state's long-term interests of a highly educated citizenry," the proposed FY 2011 spending plan for higher education. It contains $50 million in cuts to the nine state colleges and universities, and cuts to state financial aid programs serving educationally disadvantaged students attending New Jersey colleges.

 

The 15% (average) cuts in direct operating aid, along with an equally hefty tab of over $30 million in FY 2011 for salary increases mandated by the State of New Jersey, will add intense pressure on colleges struggling to maintain programs, including those that help disadvantaged students with college goals, and those that contribute to state economic development. It will also add pressure on student tuition and fees, already second highest in the nation for public colleges.

 

"The need for budget reform is clear, but it's very unfortunate that the state's severe fiscal problems have come to this point. New Jersey has long been headed in the wrong direction in support for higher education. The proposal does not help to reverse the trend," Greer said. The state already loses more talented students than any other state in the nation (about 30,000 annually). These students are eagerly sought by public and private institutions in other states and fully understand the benefits of a college education. With their annual departure New Jersey loses billions of dollars in local spending, according to NJASCU data. Even worse, their leaving diminishes the chance that they will return to the Garden State to live and to work.

 

NJASCU's nine member institutions educate over 100,000 students a year, including over 90,000 New Jersey residents.

 

Greer also reiterated sentiment unanimously expressed by the Association's Board of Directors yesterday that it is incomprehensible that the proposal zeroes out support for the highly innovative Thomas Edison State College. "The College is a unique, highly cost-effective institution providing undergraduate and graduate education to over 18,000 highly motivated adult learners. Edison is a New Jersey gem, the best institution of its kind, nationally." Furthermore, the last thing we need in New Jersey is one fewer public, four-year college.

 

The Association has been tracking mounting demand for state college education since the 1990's and has been the leading consistent voice for increasing four-year public college capacity. Today, the colleges have to turn away thousands of students. Approximately 25,000 apply for fall admissions as first time, full-time freshman for an estimated 11,000 seats. Graduating nearly one-half of all state baccalaureate students, annually, and as the major set of institutions receiving county college transfers, the state colleges cannot squeeze in more students with rapidly diminishing state resources.

 

For the period FY 2005-FY 2009, New Jersey ranks:

 

n	3rd nationally in full-time equivalent student enrollment growth;
n	49th in revenue per full-time equivalent student (appropriations and tuition); and
n	47th in percentage change in appropriations per full-time equivalent student (Source: SHEEO, 2010).

 

The latest proposal funds the nine state colleges with about the same number of dollars they received in the mid 1990's -- not adjusted for inflation. At that time, the institutions had 25,000 fewer students.

 

A particularly difficult budget matter is the anticipated cost of state negotiated salary increases, estimated to be over $30 million for the nine member institutions. No state funding is provided in the budget proposal to help institutions pay this state-mandated obligation.

 

The budget proposal contains $10.9 million in cuts to Tuition Aid Grants (TAG), a need-based aid program that benefits many state college students, and $3.6 million in cuts for the Educational Opportunity Fund (EOF) which helps students from disadvantaged backgrounds to achieve success at state colleges and other New Jersey institutions of higher education.

 

According to Greer, these cuts make all the more urgent the need for the governor and legislature to help eliminate costly and unnecessary red tape affecting the colleges, and to bring an end to mandates that cost the colleges millions of dollars at the expense of service, opportunity and affordability. "Fortunately, the budget proposal recognizes the need for remedies supported by NJASCU institutions, related to civil service, workmen's compensation and collective bargaining."

 

NJASCU leaders, including trustees and presidents, met yesterday in a regularly scheduled Board of Directors meeting; discussed the possible effects of anticipated cuts; and voiced a commitment to provide the governor, legislature and citizens with objective information about the proposed spending plan's effect on college opportunity throughout the budget process, and to work with them in a nonpartisan manner to ensure continuation of quality higher education service in New Jersey.

 

NJASCU is a nonprofit, nonpartisan policy advocate for New Jersey's nine state colleges and universities.