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

150 West State Street, Trenton, New Jersey 08608                       609-989-1100     609-989-7017 fax                   njascu@njascu.org

Solving New Jersey's College Affordability, Capacity and 
Public Accountability Challenges

State College/University Legislative Priorities
2008-2009

Refine the NJ STARS II Scholarship Program

Under the NJ STARS II program, established in 2006, NJ STARS I students who graduate from community college with a 3.0 average can continue to get free tuition and fees at a four-year state college.  But the state provides a scholarship of only $4,000 per year, and if the student is not eligible for federal or state financial aid, the college or university must make up the entire difference in cost.

The students who are benefiting from the NJ STARS II program are increasingly from families who are ineligible for needs-based grants.  At the Richard Stockton College of New Jersey, for example, the average income of NJ STARS II families currently is $96,000.

As the NJ STARS program continues to grow, costs are dramatically increasing for both the institutions and the state.  Unless the program is changed, it will cost institutions millions of dollars in FY 2009.

It is ASCU's position that the NJ STARS II program should help the student achievers without creating a financial drain at the senior public colleges and universities.  If a student is not eligible for additional financial aid, the institution should not be obligated to make up the difference in cost.

Increase Flexibility in the Selection of Trustees

Since 2000, the state colleges and universities have been authorized to have up to three out-of-state residents serve as trustees, provided they are alumni of the institution.  As the state colleges and universities continue to mature and attract support from across the country, there should be more flexibility in the choice of board members.

Assembly Bill No. 636 (sponsored by Assemblywoman Lampitt), an ASCU priority, would provide that of the three non-state residents who may serve on the board of trustees of the nine state colleges and universities, only one is required to be an alumnus or alumna of the institution.

Increase Facilities Construction Flexibility; Allow Design-Build Contracts

The State College Contracts Law (N.J.S.A. 18A:64-52 et seq.) restricts the ability of the state colleges and universities to enter construction contracts that are innovative and cost-effective.  Under current law (N.J.S.A. 18A:64-76.1), the institutions typically commission an architect or engineer to prepare drawings and specifications under a design contract.  The institutions then select a construction contractor to build the facility.  Costs can increase because of change orders derived from errors and omissions as the project moves from design to construction.

It is ASCU's position that the state colleges and universities should be able to enter design-build contracts, under which a single entity performs both architectural/engineering services and construction under one contract.  The design-build method has many advantages regarding cost containment, risk management, and timely completion of projects.

Enact Workers' Compensation Reform Making State Colleges and Universities Independent of Treasury's Bureau of Risk Management

Treasury's Bureau of Risk Management administers the state colleges' and universities' workers' compensation claims, and the Attorney General represents the institutions before the workers' compensation court.  The Bureau charges the institutions quarterly for money paid by the state to administer their workers' compensation claims.  These payments, along with Sick Leave Injury payments, have continuously escalated and have become a serious financial concern.

The state colleges and universities have insufficient administrative control over this system.  Moreover, the institutions often receive insufficient information about their workers' compensation claims.

Consistent with the autonomy granted since 1986 over fiscal and personnel matters, it is ASCU's position that the state colleges and universities should be allowed to manage their own workers' compensation program through a risk management fund modeled on the one established by the county colleges in 1985.  The institutions would obtain necessary services while minimizing their expenses, and the state would no longer need to administer the state colleges' and universities' claims.

Enact a Higher Education Facilities Bond Referendum for Voter Approval

The state colleges and universities join with the other senior public universities, community colleges and independent colleges and universities to request that the governor and legislature enact legislation as soon as possible to provide for a $2.7 billion higher education facilities bond, for voter approval in November 2008.  The bond is an extremely important strategic investment for New Jersey to achieve our opportunity, workforce, economic, prosperity, and competitiveness agenda.

Assemblyman Greenwald has introduced a bill to authorize the bond program, Assembly Bill No. 730, an ASCU number one priority.

Justification for the bond includes unprecedented demand, inadequate current capacity, and $5.8 billion statewide in capital needs.  Not since 1988, has there been a general obligation bond for all the state's higher education facilities needs.

A record number of applicants are knocking on the doors of New Jersey's colleges and universities.  Between 2003-2004 and 2016-2017, the number of high school graduates in New Jersey is projected to increase by 19.1%, the 8th-highest increase in the nation.  New Jersey has the highest percentage of high school students graduating in four years, and the highest percentage attending college immediately after graduation.

Too many of these students leave New Jersey to pursue a college education and are lost permanently to New Jersey's workforce.  New Jersey is the nation's leading net-exporter of high school graduates entering college, totaling over 26,000 students each year.

Total undergraduate and graduate enrollment in New Jersey is projected to increase between 50,000 and 54,000 between 2002 and 2010 simply based on growth in college-going population.  New Jersey is wholly unprepared to meet this demand.  New Jersey's four-year public institutions would need to expand by 70,000 students to reach the national mean in students served per capita.

Reauthorize Revolving Funds for Campus Infrastructure Needs

There is currently over $500 million in critical infrastructure needs at senior public institutions.

Bond funds for New Jersey (senior) public institutions approved almost 15 years ago were intended to be revolving funds, and they should be renewed:

In the 2004-2005 legislative session, Senate Bill No. 1928 would have renewed HEFT and increased the amount of the funds to $350 million.  A similar bill should be enacted.

Make Accountability Improvements, But Not a Big Bureaucracy

Legislation such as Senate Bill No. 148 follow up on recommendations made by the State Commission of Investigation last  fall.  The state colleges and universities oppose this bill, but have prepared a detailed outline of accountability measures already in place and improvements that can be accomplished without additional legislation or regulation.  Recent legislation, Assembly Bill No. 2407, more closely reflects what ASCU believes would ensure greater accountability and address legislative concerns without entailing regression to bureaucratic control and its higher costs.

Fundamentally, the state colleges' and universities' suggested approach includes implementing Sarbanes-Oxley best practices and strengthening the appointment and support for effective boards of trustees.

Restore Higher Education Incentive Funding

The Higher Education Incentive Endowment Program was established in September 1999 to build partnerships between private business leaders and New Jersey's colleges and universities.  Under the program, the state provides matching dollars for significant donations and endowment contributions.  The state's institutions of higher education and their students greatly benefit from this program.  Four-year public colleges and universities receive a 100% match over 10 years for endowment contributions of at least $1 million, and a 10% match for donations of at least $1 million.  Two-year colleges and independent colleges and universities also receive benefits for securing significant endowment contributions and donations.  Institutions receiving Higher Education Incentive funds earmark them to help stabilize tuition and provide scholarships, attract talented faculty, and build new classrooms and research facilities.

Funding for this program has been significantly curtailed over the past five years.  ASCU supports restoring this program with its added benefit of helping public institutions help themselves in fundraising and expanding their endowments.