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November 21, 2008


Budget & Finance
 
The University of Missouri system announced a hiring freeze this week for its four member campuses. The system president has asked chancellors to review and prioritize expenses. While revenues are expected to decline, applications at institutions in the system are projected to increase. The challenging economic climate may have an impact on tuition rates and students’ ability to pay. 
 
St. Louis Post-Dispatch (Date posted: November 18, 2008)
 
Montana Gov. Brian Schweitzer (D) unveiled his budget proposal last week, which included a $35 million increase for public higher education. According to Schweitzer, the higher education budget increase, if enacted, would be the second largest in the state’s history. Economic circumstances will not, however, guarantee a tuition freeze for in-state students. The governor’s proposed budget also includes $25 million in one-time-only funds to be used to retrofit state and university system buildings to reduce energy consumption.  Overall, Schweitzer’s budget cuts state spending by 2.5 percent and keeps a $250 million “rainy day” fund.
 
The Montana Standard (Date posted: November 16, 2008)
 
Rick Attig of The Oregonian believes that “Oregon must cut state spending, but lawmakers should do everything they can to shield the suddenly crowded higher education system from budget cuts.” Attig concedes that the higher education budget is politically easier to cut than K-12 or corrections, but lawmakers should resist this temptation. He believes the state’s higher education budget is “inextricably linked” to its students and the state “should do nothing that denies the very people it needs to succeed the opportunity to get the education and skills that will allow them to get good jobs, pay their taxes and pull this state out of a recession.”
 
The Oregonian (Date posted: November 16, 2008)
 
Elected officials throughout the nation are deeply concerned about rapidly increasing state budget deficits. For example, California is now facing a state budget deficit of $26 billion, an increase of $11 billion from earlier projections. In addition, Ohio may need a federal loan to cover unemployment costs, the first time in 26 years such action is warranted. Economic sectors like tourism and retail have been hit hard, alongside problems in the credit and mortgage markets. Most states have avoided discussing increases in taxes, with California being a notable exception. Lower revenue projections may translate into considerable cuts for the K-12 and higher education communities at the state level.
 
New York Times (Date posted: November 16, 2008)
 
Washington’s public colleges and universities are bracing for a budget cut of up to 20 percent, or $600 million, over the next two years. Meanwhile, state higher education institutions are seeing record numbers of applications. For example, the University of Washington said this week that applications for next year’s freshman class are already up 20 percent over last year’s numbers. According to university officials, budget cuts will mean larger class sizes, fewer programs, and a potential reduction in students. The state’s 34 community and technical colleges are being asked to project a budget cut of $300 million from a $1.5 billion biennial budget.
 
The Seattle Times (Date posted: November 19, 2008)
 
 
Student Aid, Access, & Affordability
 
Higher education officials are discussing considerable tuition increases as a result of projected state budget cuts. If state funding is not cut, tuition increases are projected at 10 percent, but if the state higher education budget is cut by 15 percent, then tuition increases could be as high as 24 percent. Officials from both the Tennessee Board of Regents and the University of Tennessee are anticipating budget cuts of at least 10 percent.
 
The Tennessean (Date posted: November 20, 2008)
 
Texas’ merit-based state scholarship program will soon be adding new academic standards. Texas Grants applicants will now have to satisfy two of four requirements, which include test scores and grade point average. Currently, economically disadvantaged students receive the grants on a first-come, first-serve basis. However, the grant funding pool only allows about half the eligible participants to receive funds. Backers of the move claim they want to give money to “students who have demonstrated that they’ve earned it” and increase timeliness and completion in college graduation. The Texas Grants are currently available to all students attending a four-year college, community college or approved technical college. The proposed plan would call for only students at four-year colleges to receive aid.
 
Houston Chronicle (Date posted: November 13,2008)
 
 
Tuition
 
Florida Gov. Charlie Crist (R) announced a plan this week to allow the state’s 11 public universities to raise tuition and fees by up to 15 percent a year. Under the governor’s plan, lawmakers would still set base tuition increases according to the Consumer Price Index (CPI), but individual trustee boards could then raise tuition and fees by as much as 15 percent. The state’s Board of Governors would have final approval on the tuition hikes. Crist’s plan also allows universities to develop differential tuition rates, with the goal of helping graduate students in needed professions. Also, 30 percent of the additional tuition would be used for need-based financial aid, with individual universities having the autonomy to set scholarship standards.
 
Palm Beach Post (Date posted: November 20, 2008)
 
The editorial board of the Miami Herald applauds Gov. Charlie Crist’s (R) proposal to give the state’s 11 public universities the power to raise tuition and fees by as much as 15 percent a year. They believe Crist now understands the results of having some of the lowest tuition rates in the nation: enrollment cuts, program elimination, neglected infrastructure, and increasing the difficulty of student graduation in four years. Increasing tuition costs for students, according to the editors, is a “step Florida simply has to take to improve education.”
 
Miami Herald (Date posted: November 21, 2008)


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