Tution Freeze Vote set for Thursday, what do you think?

The Board of Regents will meet in a special session on Thursday, April 23 at 11am at Towson University to vote on tuition and mandatory fee rates for the 2009-2010 academic year.  The Board will consider a tuition freeze for in-state, undergraduate students.  Out-of-state tuition increases for undergraduate students does not exceed 4%, and for graduate students does not exceed 7%.  The Governor is set to hold a press conference to announce the Board's decision immediately after.  If the Board chooses to approve the tuition freeze, in-state, undergraduate students will not have seen an increase in tuition in five years.

The Chancellor has recommended, specifically, the tuition freeze for in-state undergraduates.  The Governor in his original proposed budget set aside $16 million to fund the lost revenue from the tuition freeze.  The legislature cut $5.9 from the base budget and a one-time fund balance cut of $9 million.  Additionally, the $16 million now is funded through the federal stimulus dollars, which will run dry after two years.

I support the proposed tuition freeze, becuase I believe that the provided budget serves the system well in maintaining quality and expanding access for in-state undergraduates.  While the subsequent cuts from the legislature will be felt, Maryland sits better than all other states during this diffucult time.

Members of the USM Student Council echoed its previous concerns of an "unfunded" tuition freeze, of which this is partially unfunded.  Members explained that they were concerned that politics was taking control of tuition.  Further, they expressed that policy leaders must engage in long-term planning to prevent major tuition increases in out years.  They explained that tuition predictability was just as important as affordability.  The USMSC has asked to address the Board of Regents at the meeting.

Even with the lost tuition revenues from the in-state, undergraduate tuition freeze, the operating budget fares better in the USM than any other place in the United States.  Despite the proposed budget cuts, USM saw an increase in state support.

What are your thoughts on a tuition freeze?

USM Budget Compromise

With the legislative session in Annapolis on Monday, Senate and House leaders have been hard at work coming to a compromise on budget issues, including funding for the University System of Maryland.  In his original budget for higher education, Governor O'Malley proposed at $28 million increase for the University System of Maryland, $16.9 million dedicated to offsetting lost revenues from a tuition freeze for in-state students.  Recall, the House and Senate were at odds on cuts from the Governor's original budget, in an effort to offset lower-than-expected tax revenues:

• House - $10.8 million from annual budget; $10 million from fund balance
• Senate - $5.4 million from annual budget; $4 million from fund balance

The Budget Conference Committee reconciled the budget late Tuesday night.  Here is the outcome:

• $5.8 million annual budget; $9 million from fund balance

It's questionable as to whether this $14.8 million cut will afford the system a tuition freeze again this year.  The Board of Regents will discuss and decide on this issue in coming weeks.  More to come on the Governor's federal stimulus supplementary budget...

Budget Updates from the Senate and the Governor

Today, the Senate Budget and Taxation Committee voted in its amendments to the Governor's originally proposed budget.  Members approved a base budget cut of $5.4 million and a fund balance cut of $4 million.  This $9.4 million cut is less than half of the proposed $20.8 million cut from the House ($10.8 budget, $10 fund balance).

Both committee reports have maintained the expectation that the Board of Regents will still support a tuition freeze, despite cuts that will likely erode quality.

In the Governor's amended budget today, he cut the original $16.9 million from the base budget that would support the tuition freeze.  In its place, he has filled the $16.9 million hole with two years of funding from the federal stimulus package.  The upside of this proposal is that there will be full-funding of the budget and tuition freeze for two years.  The downside is that after two years, a larger-than-normal hole will open up that will need to be filled by state dollars in FY2012.

**TAKE ACTION** Support Full Funding for Higher Education

Funding for USM institutions is at risk!  The House Appropriations Committee voted to decrease funding by $20.3 million last week.  Take 2 minutes to let your elected representatives know how important it is to support higher education (if you are an out-of-state student, feel free to use your campus address).

Click this link to TAKE ACTION to send an email message to your legislators letting them know that you support full-funding of the Governor's budget.  The sooner you send, the better.  Forward this link to your friends, parents, neighbors, and professors so that legislators hear how important funding higher education is (they can use this specific link).  It only takes a few minutes by simply entering your address and editing a pre-drafted message.  Be sure to let your legislators know your role in the USM (student, faculty, etc.).

A cut of $20.3 million will ensure tuition is not frozen for in-state undergaduates, lower the quality of programs for all students, and could threaten pay/job security for faculty and staff.

If you have further questions, please email me ASAP at joshmichael@umbc.edu or call me at (410) 294-8581.

Read this message from the USM website:

Support Higher Education Funding  Oppose Legislative Cuts to Higher Education

Governor O’Malley’s FY 2010 budget proposal for the University System of Maryland supports the overarching goals shared by the state and the University System of Maryland:

• provide access to high-quality and affordable programs and services;
• ensure that the state’s public higher education system sustains its critical role in advancing Marylanders’ quality of life—intellectually, economically, socially, culturally, and in areas related to health.

The Department of Legislative Services is reccomending the General Assembly cut the USM funding by $5.7 million dollars and possibly more. Ask your legislators to reject this cut and fully fund higher education to maintain the quality, affordability and accessability of our public universities.

Cuts proposed in the House, debate over tuition freeze

The subcommittee on Education of the House Appropriations Committee voted last week to cut the USM Budget another $20.3 million as part of an effort to balance the state budget.  Of the $20.3 million, $10 million will come from the base operating budget (meaning a carry-over cut in years out) and $10.3 from the fund balance, meaning a one-time cut from the USM's savings that are used to sure up bonds for buildings.

The Governor proposed in his budget this year to increase funding for higher education by $27 million, $16.9 million dedicated to supporting a fourth straight tuition freeze for undergraduate students.  The increases, together, would both maintain quality and increase affordability by holding down the cost of tuition for students. 

Yet, after cutting $20.1 million from the budget, House officials still feel that the USM should hold the line on tuition.  Subcommittee Chair Delegate John Bohanan said, 

I would hope and doubt that the impact would result in a tuition hike for students...In the end, higher education is going to fare extremely well.

In the Governor's original budget, the tuition freeze support funding is listed as a separate line-item.  Delegates left this language in, assuming that the designation would ensure that the money would actually be used to hold tuition.

USM Chancellor Brit Kirwan expressed that this was not the case, and that with general fund dollars cut, that the tuition freeze dollars would then simply fill the whole of depleted funds.  The Board of generally only supported "funded" tuition freezes, of which the house proposal would not be.

I personally am opposed to the concept of an "unfunded" tuition freeze, as is the case in the House version of the budget.  Fortunately, the Board of Regents sets tuition policies, partially removing the decision from political pressures.  Chancellor Kirwan has highlighted that higher education in Maryland appreciates all the support and recognizes the need to cut the budget during the tough ficsal times--but not at the cost of major deficiences in quality.  

While the House version is far from the final proposal, the move to institute an "unfunded" tuition freeze from legislators is concerning.  With strapped universities, quality erodes.  Class sizes grow, faculty are overloaded, library resources remain stagnant, campus hours shorten, other fees arise, among other indicators.  A moderate tuition increase is an appropriate compromise if the state cannot fund the USM budget to the appropriate level.

But, in the meantime, the Senate is still in the process of developing its budget proposal.  Traditionally, the Senate is a bit more liberal in supporting higher education.  I have met with both the Chair of Budget and Taxation, Senator Currie, and the Chair of the Education subcommittee, Senate Kasemeyer, who both said to me that they plan to provide full funding for a tuition freeze.  So, we continue to share our concerns and thoughts with members in the Senate.  Once the Senate has a budget proposal, the House and Senate will meet in conference committee to work out details.

Check out articles highlighting developments:

- in The Sun

- in The Diamondback

- in The Chronicle of Higher Education

Tuition freeze warming up

Monday , Governor O'Malley stood with Senators Cardin and Mikulski at Bowie State University, explaining that the federal stimulus package would allow for greater investment in community colleges and for full-funding of a fourth year of an in-state, undergraduate tuition freeze.  The dedication of federal stimulus dollars seemed to seal the deal a fourth tuition freeze...

But on Tuesday , Governor O'Malley instead sat with Budget Secretary Eloise Foster, legislative leaders, and budget analysts, explaining that revenue estimates came in even lower than the already deflated expectations.  According to estimate, the Governor needs to fill an additional $516 million hole, tallying the total deficit to $1.1 billion.  Further layoffs, furloughs, and pay cuts have been put back on the table.  And of course, funding to support a funded tuition freeze has as well.

Updates are sure to come in future days.  Recall that the Board of Regents (of which I am your student representative to) officially sets tuition rates, and will do so after the Legislative Session, which ends in mid-April.

Tuition freeze right move for Maryland's future

Jonathan Sachs, Student Body President at UMCP, and I submitted an op-ed to The Baltimore Sun regarding the possibility of a tuition freeze.  Check out the article or read it here:

As students who are directly affected by the cost of tuition, we believe it is important to explain why a fourth straight tuition freeze for resident undergraduate students at our public universities is so important for Maryland. 

Even with tuition frozen for three years, student costs have increased. Since 2005, mandatory fees for students (for parking, student unions and recreation services) have increased 15 percent; room, by 14 percent; and board, by 13 percent at the University of Maryland, College Park. Couple these increases with the rising costs of textbooks (increasing at four times the rate of inflation), transportation and other associated costs, and an in-state student's annual bill can reach more than $20,000.

Most students in the University System of Maryland are not wealthy. Our parents are teachers, government workers, nurses and police officers. This economic crisis has hit our families hard, and we need any financial break we can get to continue pursuing a college degree - which will better position us to contribute to Maryland's vibrant, knowledge-based economy. 

We need a tuition freeze to help keep costs affordable so that we can stay enrolled. Maryland is witnessing an amazing transformation in public higher education. New facilities are being built on campuses across the state, and academic standards continue to rise. The state's public universities are ranked among the nation's best and are educating more students than ever. At the same time, our classes are more racially and socioeconomically diverse than previous classes. 

Continuing the tuition freeze will not hinder this growth at all. To the contrary, it will help open doors for more Marylanders to share the outstanding opportunity of attending a public university. The proposed freeze would cost the state $16 million, a small fraction of the more than $1 billion in state investment in higher education each year. 

"Governing is choosing," and Gov. Martin O'Malley has chosen to invest in Maryland's future, so that we can fill the jobs of our state's advancing economy. This is a long-term, worthwhile strategy for investing in the minds needed for Maryland's future success.

Jonathan Sachs is Student Government Association president at the University of Maryland, College Park. Josh Michael is a student member of the University System of Maryland Board of Regents and a UMBC student.

Tuition Freeze becoming a reality

The announcement of Governor O'Malley's intention to fully fund the Thornton calculations for K-12 education during the next two years.  Why does this matter to higher education, you ask?

What's not said is what is important in this article.  In funding K-12 education above the originally proposed levels, the Governor will surely have the funds to fully support his proposed dollars in the operating budget for the USM.  The Governor has relied upon funding from the federal government to support his operating budget.

So, the tuition freeze is becoming more and more likely each day.  The announcement of full-funding of K-12 this year is a sign that funding should arrive for higher education to support a funded tuition freeze.

Tuition Freeze Debated, Front and Center

The policy debate of freezing tuition for in-state, undergraduate students has come to the spotlight in recent days.  Despite the challenging financial times in the state, the Governor has brought the proposal to the fore heralding it as one of his highlights of the budget proposal.  In his State of the State Address, O'Malley took on critics directly:

Is the fight for affordable college about politics??? You’re darn right it’s about politics. It’s about the politics of inclusion. It’s about the politics of prosperity. It’s about the politics of opportunity. It’s about the politics of posterity. It’s about the politics of my kids and yours. It’s about the politics of the hardworking people we serve. You’re darn right it’s about politics.

Legislative leaders have a different perspective on the issue, particularly Senate President Mike Miller, highlighted in The Sun today.  House Speaker Mike Busch has spoken out, explaining that increased investment should be made in community colleges.  The Governor has invested $16.9 million in the FY2010 budget to fund the tuition freeze.

USM officials, though, stand strong behind the Governor.  Chancellor Kirwan highlights the psycological access impediment of "sticker shock."  As many of us know, relying solely upon financial aid and loans for funding a college education is unreliable and stressful.

The Commission to Develop the Maryland Model for Funding Higher Education, commonly known as the Bohanan Comission, proposed in its final report that Maryland strive to reach the 50th percentile in tuition costs in the United States.  Currently, tuition at public institutions ranks 16th in the US and will rank 18th if a tuition freeze is funded this year.  Notably, after two years of double-digit increases in tuition under the Ehrlich administration, tuition in Maryland shot up to 6th nationally.

It's important to put the cost of education into perspective for Maryland families.  Between 2002 and 2007, tuition costs grew by 44.7%.  At the same time, median income grew by only 16.4%.  In other words, tuition is growing three times as fast as family wealth, making higher education significantly less affordable for Maryland families.  Trends like this make higher education less and less a public comodity and more for those who can afford it or earn merit scholarships.  And, in tough fiscal times, families who are not eligible for financial aid are struggling to pay for college otherwise.

USM officials and the Governor recognize the need to maintain affordability for Maryland students and families.  Instead of expanding quality during tough times, legislators should maintain their dedication to holding the line on affordability to ensure that college remains a public good.

A Night with the UMB USGA

Wednesday night, I had the opportunity to meet with about 40 student leaders of the USGA at the University of Maryland, Baltimore to discuss happenings in Annapolis and throughout the USM.  The vast majority were graduate students, a change-up of sorts for me because by nature of enrollments, most students that I interact with are undergraduates.

We spoke about the realities of funding of graduate schools and that from the state's perspective, is often a secondary priority.  The Governor has emboldened his support for a tuition freeze this week for in-state, undergraduate students.  Many graduate students have argued that such a policy sets up graduate students to pay for undergraduate tuition freezes.  I explained that the USM has made it a strong policy that only through full-funding of the operating budget with the USM agree to a tuition freeze.  In other words, the Board of Regents will only approve a tuition freeze if all other costs are covered.

Other issues were raised during the meeting, such as the varying increases in tuition for in-state and out-of-state students.  For instance, in the law school at UMB, out-of-state fees raised 4.3% last year, while in-state tuition increased 7.4%.  The intention of such a move is to attract the best and brightest out-of-state students to UMB Law to drive up the prestige.  I look forward to continued conversations regarding tuition policies for graduate students.

Without a doubt, graduate students are a vital component of the Maryland workforce.  The question we analyze is what is most efficient and fair use of dollars appropriated to higher education, between undergraduate and graduate students.

Ice storm a sign of things to come??

I couldn't help but draw the connection this morning between this unusually heavy ice storm and the Governor's proposed tuition freeze.  Most of us were "frozen" out of our cars, buildings, and sidewalks.  Check out this picture of Annapolis frozen over (from The Sun).

The Governor continues to make it clear that he wants to hold the line on the tuition freeze.  Last night, he sent a note to supporters reiterating his intentions:

January 27, 2009

A Message from Governor O'Malley

Dear Friends,
Recently, we gathered to release the FY 2010 budget for the State of Maryland. The proposed budget closes a projected $2 billion shortfall due to the national recession and at the same time protects the progress we have made in improving public education, workforce investments and making college more affordable.
We are committed to ensuring that college is both affordable and accessible for anyone who is willing to work hard for a better future, which is why we are providing a fourth straight year of zero percent increase for in-state college tuition, expanding opportunities for higher education so our children will not have their college dreams deferred. This means that students entering Maryland's University System four years ago will graduate this year without their tuition ever having gone up.
Our investments in higher education are evidenced by the selection of four Maryland campuses among the nation's top 50 "Best value" public colleges by the Princeton Review: Towson University, Salisbury University, St. Mary's College of Maryland and the University of Maryland Baltimore County.
In our efforts to protect our higher education progress, we are proposing:

• To include $16.9 million in the FY2010 budget to continue the tuition freeze; and
• To continue the "tuition freeze" for in-state undergraduates at Maryland's public 4-year higher education institutions for a fourth consecutive year.

As a result of the commitment we have made together to higher education, the University System of Maryland (USM) will have gone from having the sixth highest tuition in the nation in 2004 to having the 18^th, according to an analysis of national public university tuition data. Working together, we can continue to ensure that tomorrow's workforce will benefit from the investments we are making today.
Martin O'Malley
Governor

If nothing else, I guess last night's freezing storm is simply a warning sign to those who are thinking about standing in the way...

Higher Ed's Corner of the State Budget

In the fall of 2007, many of us spent time lobbying state legislators and policymakers to establish the first ever dedicated funding source for higher education in the United States.  You may recall emails from the administration or SGA volunteers asking you to contact your legislators to lobby for increased funding for higher education.  And, a number of student leaders participated in a Higher Education Rally in Annapolis during the heart of the 2007 Special Session.  The vehicle for this funding was the Higher Education Investment Fund, or HEIF.

Specifically, the HEIF is funded through a half-percent increase in the corporate income tax.  It is estimated that the state could recieve upwards of $66.5 million this coming year from the fund, according to the 2009 Dept. of Legislative Services Fiscal Briefing.  Originally intended to "supplement" and not "supplant" current funding in higher education, it's unclear whether on not the fund actually brings more money to higher education.  Possibly the fund is more symbolic than anything else, suring up a mandate for higher education, albeit a small fraction of the state's usual support for higher education.

The original passage of HEIF had a sunset clause included for 2009, as an emergency valve if slots did not pass in November 2008.  Slots passed, and so the Governor has proposed to reauthorize the dedicated funding source.  It seems like the bill will pass the legislature.

The real question, though, is whether the HEIF will return to "supplemental" status, as opposed to "supplanting" status, if/when fiscal times looks better.

O'Malley's FY 2010 Budget Proposed, Tuition Freeze Included

The Governor presented his proposed FY2010 budget today.  Specific to higher education, the Governor has included a tuition freeze for in-state, undergraduate students for the fourth straight year.  As highlighted on The Sun's Maryland Politics Blog, this is the first time in 25 years that expenditures will shrink for the Maryland state budget (by 1.3%).  The Governor is making his pitch loud and clear that affordable higher education is a priority of his administration, increasing funding for colleges amidst major state cutbacks.  This trend in investment is unique, whereas most Governors view higher education as true discretionary cost that should be cut during hard fiscal times.  Such is the case across the United States today, and was the case in 2003 under the Ehrlich Administration.

Tuition Freeze says the Governor

The Maryland General Assembly opened session yesterday.  With the budget at the fore, higher education state support will be up for debate.  Currently, 22% of the discretionary budget is directed to the University System of Maryland.  The level of state support for higher education has two related impacts on students:  quality and affordability.  As in the past and at public universities across the country, tuition is raised to offset declining state investment.

Maryland is in a bit of a different scenario because the Governor has made it a priority of his administration to increase affordability in higher education through tuition freezes.  In-state, undergradautes attending 4-year colleges have enjoyed three straight years of tuition freezes.  The Governor has vowed to do it once again, but will be challenged by the legislature.  The Governor will likely ask for an increase of $25 to $30 million for higher education alone.  A tuition freeze alone costs approximately $16 million.

Senate President Mike Miller has already spoken out against the idea of a tuition freeze, in light of proposed state layoffs possibly extending to1000 employees.  Speaker of the House Mike Busch has floated the idea if differentiated tuition increases, particularly at UMCP.  

The Governor recognizes the great need to maintain the cost of college for Maryland residents--it's one of the drivers of our state's economy and its a short-term investment that helps us retain Maryland citizens who might relocate if they attend college elsewhere.  But, what cannot happen is that quality bottoms out at our institutions through decreased state revenue support not offset by any tuition increase at all.  In other words, higher education and Maryland future cannot get caught in the middle of politics.

For the national picture, check out this article.

Coming weeks and months will be telling.  What are your thoughts on a tuition freeze?  Increasing funding for higher education while laying off state workers?

USMstudents Returns & Legislative Session Begins

Hi all.  I regret not writing for the past month, but am excited to get back in communication with you all.  With the Fall 2008 semester over and a new year and Spring 2009 semester ahead of us, we all have a lot to look forward to.

As I write, I am headed out the door to Annapolis for the official opening of the 2009 Session of the Maryland General Assembly.  The Session lasts 90 days.  This year's session will inevitably be crowded by the looming budget revenue shortfalls that have already impacted every part of state government.

For higher education, two major priorities will shadow most lobbying efforts.  First, affordability will be at the forefront of discussions at the intersection of state budget support and tuition rates.  Should the legislature choose to cut higher education significantly from the budget, the likely response will be a hefty tuition increase to offset the lost support.

The other major issue will be textbook regulation legislation.  Senator Pinsky will likely propose legislation similar to last year's Senate Bill 657 .  Some changes will be made to ensure that this bill passes this session.  Also, expect other changes at the institution level from the Textbook Affordability Summit held last month.

Other issues are expected to arise during the session that will affect higher education, such as tuition for undocumented immigrants and funding for capital projects.  I look forward to keeping in touch with you through USMstudents during the 2009 Legislative Session.

Budget Cuts Finalized; $35.4 million cut for USM

Governor O'Malley brought a final list of budget cuts to the Board of Public Works today.  Among cuts, the Governor cut the state contribution for the University System of Maryland by 1.5%, totalling $15.6 million.  Notably, the USM also recieved a $20 million cut from its general fund.  Other cuts in Higher Education include:

• Community College Local Aid- $8.2 million
• Maryland Higher Education Commission Operations and Scholarships- $8.9 million

The USM saw greater than expected cuts; but in relation to other departments and the USM's share of the discretionary budget, the USM fared relatively well.  These cuts are part of a nearly $300 million budget cut proposal, as highlighted in an article in The Sun.

Budget Woes in Maryland

Budget revenues are down in the state as a result of a faltering economy, and so the Governor is considering mid-year fiscal 2009 budget cuts. Governor O'Malley will propose approximately $300 million in budget cuts. The Sun has highlighted a list of these possible cuts.

The Sun reported that the USM will receive about $30 million in cuts, $10 million from the base operating budget and $20 million from the "cash-on-hand" fund balance. Community colleges are set to receive $16.3 million and independent colleges will receive a 25% cut of state funds of 8.4 million.

While it seems like the USM is taking a significant cut, we are fairing well in the broad picture of cuts. The USM encompasses 22% of "unrestricted funding" of the state budget, and will only take about 11% of total cuts.

Of course, the Governor may very well propose additional cuts beyond these estimates tomorrow in his final proposal, considering the recent decline in the economy. Also, revenue estimates may be down again later this year--we should embrace to consider further midyear budget cuts down the road.

On a related note, the Chronicle of Higher Education has written a story about the USM's unique strategy of cutting the fat in the budget and increasing efficiencies through the Effectiveness and Efficiency Initiative. Legislators have commented that this strategy has increased their trust and confidence in budget proposals from higher education.

Presidents of USM institutions will be faced with tough decisions after tomorrow when the first round of budget cuts are approved.

**Also note an article in the Diamondback highlighting a report from the Department of Legislative Services yesterday, which recommended that policymakers seriously reconsider another tuition freeze.

Looking Forward in higher education...budget cuts

I spent two days last week participating in a retreat of the Board of Regents. We reviewed strategic objectives for each campus and heard from Presidents on how they would handle budget cuts in Fiscal Year 09 (this current year) and FY10. We asked Presidents to prepare statements on a 2% FY09 base cute and a 3% FY10 cut. The most popular cuts that we heard were:
- maintaining the hiring freeze
- further backlogging deferred maintenance
- financial aid for students.

We asked the Presidents to prepare these numbers in expectation of budget cuts in the current year because of the mid-year estimated budget shortfalls (see previous entry). It is estimated that the Governor will cut just over $220 million this year, and because higher education is such a large share of the discretionary budget, we expected to see cuts.

Since the retreat, we have heard from the Governor's office that we should expect to see a base budget cut of $10 million and a cut from our fund balance reserve of $20 million. While we will see a total of $30 million in cuts this year, the lasting effect on the budget will only be a cut of $10 million from each year out.

Of course, this budget situation is a tale of two cities. The Governor has worked very hard to support higher education, and planned to fund a tuition freeze for undergraduate in-state students at the cost of $16 million and fully funded the rest of the operating budget and capital projects. On the other hand, the system did not raise tuition because the Governor planned to fund the difference; but now with budget cuts, those dollars will now not come to our institutions.

Of course, things will be difficult over the coming months and couple years. A partnership with the Governor's Office is critical to maintaining as much funding as possible for education. Governor O'Malley been very supportive in the past and I do not doubt that he will be in the future.