Higher ed gets more aid

There's good news and there's bad news on the education front when it comes to the 2004-05 state budget.

The good news is Pennsylvania's investment in basic and higher education consumes the largest part of the state's General Fund Budget - funding for education will increase 7.4 percent; significantly

The bad news is that despite the increase, most public universities aren't going to be able to do much more than maintain the status quo.

The state budget includes sizeable funding increases for the state's publicly-owned institutions. Community colleges will receive a $12.3 million (or 5.8 percent increase), and the State System of Higher Education received a 4.3 percent increase in state support.

Other higher education institutions not under the direct control of state government received a smaller increase.

State-related universities including Penn State University, University of Pittsburgh, Temple University, and Lincoln University received about a 3 percent hike. A number of private institutions received smaller percentage increases.

Higher education budget issues got much less attention in this budget but still consume a large portion. With the exception of community colleges, the budget's focus for higher education has been on restoring the reductions in state aid experienced by most institutions over the past two years.

Richard Rugen, vice president of administration and finance at Bloomsburg University, explains that prior to 1995, the university received more funds from state aid than it did from tuition. Things have changed in the past few years, though.

"Right now, as of this past year that just ended, 58.3 percent of our revenue came from tuition and fees, 37 percent came from state," he says. "We now have considerably less from state."

Rugen says for the past three years there was a higher demand from students, which caused a hike in tuition to make up the difference.

"We (publicly-owned universities) are the access universities. We are there for students who can't afford a private education," says Rugen. "That's why we're supported by tax dollars."

The 14 publicly-owned universities have been forced to raise tuition to make up for declining state funds. Now, thanks to the 2004-05 budget, there should be some relief, Rugen says.

"This year, the trend was reversed and we got an increase in tuition and state appropriation, but that follows three years of a decline," explains Rugen.

Even though the state's share is higher this year, there will still be a slight tuition increase, but there's a reason for that, Rugen says.

"People focus on a tuition increase and think it's going up way too fast ... they're not looking at other factors that we're dealing with," he says. "Yes, we have an increase this year, but we are using the increase to sustain quality and to sustain programs and meet the needs of students. We're simply trying to get back to where we were before."

According to Rugen, Bloomsburg University is operating on an approximate $33 million budget this year. It's an increase, but, he points out, "We either cut back services to students or we increase tuition and fees."

Tuition isn't the only fee on the rise. While all of the 14 publiclyowned schools have the same tuition - a board of governors sets the rate - the individual school can set fees for room and board.

"There are two major budgets: education/general (faculty, staff) and what's called 'auxiliary services,' " says Rugen. "Those are specifically student-oriented services that are supposed to be self-supporting, residence halls, food, room and board. The auxiliary operations must be supported by those sources of revenue."

For students attending private universities and colleges, that's not necessarily a big problem because, Rugen notes, because very few students in private institutions pay the cost of the tuition. He says schools with large endowments can provide scholarships. For public institutions, though, state aid is the substitute for that sort of funding.

"It's always a mistake for someone to say 'you've raised tuition, you must really be making out,' " he says. "Not really. We're trying to attract students and we are competing for those students."

Rugen says, Bloomsburg has been very fortunate in that it has been well managed.

"We are attractive to students and we have a very positive reputation. We've been able to remain financially healthy," says Rugen.

So while the new budget will help, Bloomsburg University officials will continue to be very cost-conscious.

"Clearly there is a demand for education and we're working to try to fulfill that demand," says Rugen. "It's hard to do it financially, but it's a very good sign that we received an increase this year from the governor and we're hoping that trend will continue."

Community colleges are also hoping the trend continues, though the budget affects them differently. Community colleges, like Luzerne County Community College, receive funding from local taxes, the state and tuition. The idea behind the system is that local money will keep the student's share of the costs to a minimum.

At LCCC, costs may be at a minimum compared to those at universities and colleges, but it's still tough to keep costs down. According to Dr. Patricia Donohue, president of LCCC tuition went up $3 per credit hour this year. She's concerned that if state funding isn't adequate they'll have to keep raising tuition.

"We try very hard not to do that," she says. "One of primary goals for community colleges is keeping it affordable. I've made a personal commitment to the access and affordability that they bring to the people of the region.

Donohue explains that what legislators put into the state budget for community colleges this year was a five percent raise initially. Then they worked their way up to 5.8 percent. Donohue says she and other community college presidents aren't happy with that number and are working to get it up even higher.

"Another thing that's very different between us and public universities and colleges is that the state provides capital funding for the state system and others, but only supplies capital funding for community colleges on a very limited basis. They assume all of that responsibility should be borne locally," says Donohue.

The problem is, she points out, local government is suffering financial difficulties as well. Community college presidents are taking the position that the system simply isn't fair and they want the state to reconsider.

In the meantime, the increase in funds from the state gets LCCC back to two or three years ago, says Donohue.

"It's all going to be maintenance (the spending)," says Donohue. "We're still at risk even with that money. We've already cancelled sections and there are serious risks for students that they won't be able to get some of courses and credits they want."

Community colleges across the state are working with the governor's office and department of education to try to set up a new structure to go forward that would give them the adjustment in equity to get back to the starting point and provide funding to the community colleges. It may not make a difference this year, Donohue says, but legislators will be working on the 2005-06 budget it the very near future.

"One of the most important things to remember is that we're the people's college - the one here to serve the community and it's very critical that we don't close the door to the students who are coming to us to get an education and to get their start in the workforce," says Donohue. "We at Luzerne County Community College are really glad that we're able to serve so many students in this area, both those preparing for work and those in the workforce and hope to keep doing that for a long time to come."