Chancellor W. Ann Reynolds Testifies on State Budget

Chancellor W. Ann Reynolds testified before the New York State Senate Finance Committee and the Assembly Ways and Means Committee on Jan. 16 about the effects of the 1996-97 State Executive Budget on CUNY and the need for restoration of $50 million in state funds to CUNY senior colleges, and $50 million in TAP funding for both senior and community college students. Highlighted in her testimony were the following topics:

Operating budget: The 1996-97 budget proposes an 11.2% reduction in State funds for CUNY, or $57.6 million. But when mandatory increases are factored in, she emphasized, the shortfall rises to $96.3 million. Specific savings-from the second-year early retirement plan, the annualized value of the 1995-96 mid-year cut and energy conservation-will reduce the cut to $50 million at the senior colleges. However, that still totals more than twice the current year's lump-sum reduction.
Funding support: The Chancellor noted that FTE support at New York's public universities lags far behind other states. New York was one of only four states to reduce support to higher education in the last two years. At CUNY, FTE funding in the current budget is only $5,006, compared to SUNY's $6,346. At comparable public institutions nationwide, state support is much higher-$7,038 at Iowa State University, $7,389 at the University of Arizona and $9,494 at Florida State University-even though CUNY and SUNY have higher tuition rates than most of these institutions.
Financial aid: The Chancellor expressed deep concern about recommended cuts to the Tuition Assistance Program (TAP). With annual expenditures capped statewide, those cuts would cost CUNY students at least $59 million. She estimated that 43% of the value of proposed changes would be borne by students with Adjusted Gross Income (AGI) of less than $4,000 a year. And 79% would be shouldered by students with annual AGI of less than $20,000. Among the new proposals, 50% of a student's federal Pell grant would, for the first time, be used to reduce TAP calculations; a one- year lag in TAP calculations would follow any tuition increase; and TAP eligibility would be calculated on AGI rather than Net Taxable Income.

Chancellor Reynolds noted that a $10 million financial aid block grant would partially offset cuts for CUNY's neediest students in the Executive Budget, but pointed out that it only compensates for 17% of funding losses. This leaves CUNY students with a $50 million net loss. CUNY students would bear 50% of the proposed TAP cuts statewide, even though they receive less than 25% of the statewide TAP appropriation.

The result of these changes, she said, would be more students struggling to take courses part-time and others who would simply leave college. Conservatively, the Chancellor estimated, this could mean a loss of 10% of full-time undergraduates next fall: 7,000 at CUNY senior colleges, and 4,000 at the community colleges. Since the University loses revenue for every qualified student who does not enroll, that could result in another $21.3 million loss at the senior colleges beyond the $50 million shortfall described above, and a loss of $9.8 million at the community colleges.

Chancellor Reynolds acknowledged the Governor's support in the Executive Budget for the following University programs and goals: Academic Program Planning, the College Preparatory Initiative, long- range planning efforts of the Board of Trustees, the Language Immersion Program and the hiring of 100 new, full-time faculty. She also expressed gratification at the inclusion of funding in the capital budget to continue construction of facilities at Baruch College and to complete renovations at the B. Altman building to house the Graduate School and at Fiterman Hall of the Borough of Manhattan Community College.

In her testimony, the Chancellor requested a $3 million lump sum allocation to the community colleges for educational technology and support for the first-phase implementation of the Master Plan at Brooklyn College.