Paul Shelly, NJ Association of State Colleges & Universities
The austere budget proposed by Governor Corzine contains a cut of five percent in state appropriations to the nine state colleges and universities. Collectively, the colleges/universities would lose $13.8 million, bringing the state appropriations down to the same level (in dollars, not adjusted for inflation) as the institutions received in FY 2000. This represents the 7th cut this decade. New Jersey has ranked near the bottom of the 50 states in higher education investment for more than five years.
The budget proposal is positive in addressing college affordability by increasing funding for New Jersey’s key student aid program that reaches many low and middle income students: the Tuition Aid Grant (TAG) program.
Funding in the budget proposal for employee fringe benefits, often displayed as a budget “increase” for higher education, does not come to the colleges, but stays in state accounts to pay for mandated health, retirement and other benefits.
While college leaders acknowledge the governor’s earnest efforts in difficult economic times, and important new support for student financial aid, this budget has little promise for the increased investment needed to move New Jersey in the positive direction envisioned by President Obama: making the United States number one globally in college degree production, within ten years. Demand for public higher education in New Jersey is at an all-time high, and the colleges are serving 98,000 students, 20,000 more than a decade ago.
Today, more than ever, higher education is universally viewed as a vital component to economic recovery. Nearly one-half of all New Jersey college graduates, annually, are from the nine state colleges and universities with applications at an all time high. The institutions rank third nationally for similar colleges among the states, in degree productivity.
How state negotiated salary increases are handled remains a major area of the budget proposal that requires further analysis. To mitigate the cuts the proposal anticipates savings through salary freezes. But the institutions cannot unilaterally impose such freezes or furloughs without changes in the labor contracts and tenure laws. These would have to be accomplished by the state through negotiation or mandated by legislation. For FY 2010, the nine state colleges are obligated to pay roughly $25-30 million in mandated salary increases for bargaining unit members, unless the state is successful in winning or imposing a salary freeze.
The mandated increases come in two parts: a state negotiated cost of living increase (about 3.5 percent) and automatic state mandated increment increases (about 3.5 to 4.0 percent), both affecting about 70 percent of all employees.
Overall, New Jersey’s budget situation places even greater pressure on public college tuition in order to meet citizens’ demand for high quality instruction, facilities and safe institutions.
State colleges/universities understand they must continue to manage effectively, by becoming more productive, while protecting access and quality for students. Within the past year, college presidents, working together through ASCU, have made public commitments in this regard through the New Jersey College Promise and Nine Strong for a Stronger New Jersey projects. They continue to strive to meet the mounting demand for affordable higher education, which is characteristic during economic downturns.
Paul Shelly
NJ Association of State Colleges
& Universities
Trenton

