New Jersey Association of State Colleges and Universities committed to college opportunity for new jersey citizens

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Irony in Higher Education Budget Cuts: 
Doing More Means Less for New Jerseyans

Darryl G. Greer

Executive Director/CEO

Released
June 9, 2006

1997.  The Whitman Administration is facing some serious budget challenges not caused by higher education.  Administration officials call a press conference and assert that the state colleges and universities are not operating at peak efficiency and could easily save the state $100 million.  Reporters ask for details but are provided none.  Later in the year, state auditors are dispatched to select state colleges to identify efficiencies.  After some study, they conclude the institutions are well-run.  The alleged $100 million "savings" is forgotten.

Years of erratic state funding for higher education pass.  New Jersey, as predicted by economists, suffers from having one of the nation's largest structural budget deficits.  Adjusting to new economic realities, state colleges and universities continue to find more ways to economize, saving hundreds of thousands if not millions of dollars each year and serving more students, including far more full-time and residential students, with about the same funds.

Fast forward to 2006.  The state faces continuing, serious budget challenges.  Some state officials assert that state colleges and universities may not be spending money as wisely as they should and that institutions may be able to withstand big cuts without dire consequences for students or state economic competitiveness.

The budget deficit creates a pattern of challenges for public colleges and universities and future college opportunity for New Jerseyans.  Decisions to cut should not be based on the false assumption that colleges can weather any economic storm that comes along, without consequence.  One reason for this assumption may be the fact that colleges have managed well during pretty hard times.  Here are facts to illustrate:

The FY 2007 State Budget proposes cuts to higher education of an unprecedented magnitude.  The total effect of the proposal would result in an $89 million shortfall at the nine state colleges and universities, $300 million for all higher education institutions.  These reductions will have serious consequences for current students, college personnel, and employers and the future of the institutions as magnets for bright students and generators of economic activity in their respective regions.

The public should not misunderstand.  If the cuts go through, there will be pain.  Some programs and class sections will be cut, as will student services.  Tuition will go up, more than would have been the case with better funding.  Positions will be left vacant or eliminated.  And if there is no restoration before the budget is enacted, and no major reinvestment in FY 2008, higher education will not be able to deliver the promised opportunity and economic development at the level it otherwise could.  Our residents will suffer, our state's competitiveness will be hurt.

The state's budget problems are real, and the public colleges and universities must do their part to help with spending reductions, keeping well in mind their accountability for quality educational and public service.  The current proposal, though, cuts far too deeply and threatens future college opportunity for middle income New Jerseyans who look upon these institutions as their pathway to the American Dream.

As the budget process unfolds during June, the state colleges and universities, together with all segments of the New Jersey academic community, look forward to working with the governor and legislature on the means for prudent investment in New Jersey's future, through higher education.

New Jersey Association of State Colleges and Universities was created by the State in 1985 as a policy advocate for the state colleges and higher education.  Its nine institutional members are: The College of New Jersey, Kean University, Montclair State University, New Jersey City University, Ramapo College of New Jersey, The Richard Stockton College of New Jersey, Rowan University, Thomas Edison State College and William Paterson University.