In a series of proposed sweeping cuts aimed at closing a $2.2 billion gap in the state’s current-year budget by June 30, Gov. Chris Christie announced on Friday plans to slash operating aid to higher education in the state by $62.1 million.
Based on available information, the University’s share of the reduction is $18.5 million, President Richard L. McCormick said in a letter to the University community.
A large reduction in state support this late in the year to the University’s $1.9 billion budget will be difficult to handle, since students and classes are in place and funds have largely been spent or committed, Vice President for University Budgeting Nancy Winterbauer said.
“Enrollments are at an all-time high, so that there are more students requiring services,” Winterbauer said. “We do not yet have a sense of the effects of this cut, but it certainly will strain already taxed programs and services and will require that needed expenditures be delayed. The cuts are so significant that budgets across the University will need to be reduced to meet the shortfall.”
The University must redouble its efforts to secure new sources of revenue and to enhance those that are within its control, McCormick said.
Private giving, new programs for new students, off-campus programs and online and continuing education courses are just some of the new sources of revenue, Winterbauer said.
These sources are worth pursuing because they are not subject to the constraints that come with state aid, she said.
“Given the recent fluctuations in state support, units have been looking for other revenue sources that are more in our control, and that will reduce the University’s reliance on state funding,” Winterbauer said.
Nat Bender, executive vice president of Union of Rutgers Administrators-American Federation of Teachers, said he believes the University has the reserves to absorb the cut without interrupting operations and student services.
But Winterbauer disagrees.
She said the University does not have the reserves to absorb a cut of this size. Savings that were reported to the state treasurer are savings from deferring planned salary increases for faculty and staff, Winterbauer said.
The faculty and staff unions saved the University more money that had been budgeted for
salary increases through their agreement with the University, Bender said.
“Since the budget from the state, even before the latest cut, did not include any state funding for employee salary increases, the deferrals of these raises are really unfunded costs that were avoided, not cash in hand,” Winterbauer said.
Still, state support is just one of a number of different sources of aid, Bender said.
“Tuition went up 3 percent. Enrollment rose as well. Rutgers has been bringing in
hundreds of millions for research from the federal stimulus,” he said. “State funding
is a fraction of the overall Rutgers budget, so it is only one factor to consider.”
The American Federation of Teachers remains skeptical of savings, as the recent contract negotiations and other increased revenues have enhanced the University’s budget flexibility, said Patrick Nowlan, American Association of University Professors-American Federation of Teachers executive director.
“We limited their expenses by reaching these agreements to modify our contract,” Nowlan said.
URA-AFT members support the programs that deliver hundreds of millions of dollars to the University from external grants to conduct research, Bender said.
“Please keep in mind, when we are talking about unionized staff and faculty, these are the people who make the University work — from the faculty delivering quality education to staff providing comprehensive services necessary to support the University’s mission,” he said.
Bender said the University community should make the case for quality public education in New Jersey and at the University.
“Students, faculty and staff at the University need to let the governor and Trenton know that we want to see increased support for higher education,” he said.
Christie slashes $18.5M from University funding
Published: Wednesday, February 17, 2010
Updated: Wednesday, February 17, 2010
17 comments
It is a waste of dollars, and a way to cheat students-who work for free- from their education.
Let's not ignored the ridiculous money going to housing and salaries of coaches and administrators ( President) that are treated like royalty. All this while the poor just eats cake.
It is a waste of dollars, and a way to cheat students-who work for free- from their education.
Let's not ignored the ridiculous money going to housing and salaries of coaches and administrators ( President) that are treated like royalty. All this while the poor just eats cake.