NYPIRG is a statewide, non-partisan, not-for-profit research and advocacy organization directed by college and university students who are elected from each of the 20 campuses that have a NYPIRG chapter. As a student directed organization, NYPIRG is committed to representing New York State college students’ interests in maintaining access to quality, affordable higher education at both public and independent institutions. It is that commitment that brings us here today to share our concerns about the Governor’s proposed budget for higher education.

We are very disappointed with this year’s Executive Budget. The Governor proposes to continue already deep cuts to New York’s successful opportunity (HEOP, EOP, SEEK) and childcare programs, he proposes no increases to SUNY and CUNY, and he proposes an overhaul of the state’s Tuition Assistance Program (TAP) which makes it harder for needy students to go to college.

CUTS TO TAP

The Governor recommends a minimum cut of $155 million from TAP and a change to the way these grants are administered. Under the new plan, TAP recipients will receive a two-thirds "base" award while in college; the remaining one-third "performance" award will be granted after graduation. For example, a student recipient of a $3,000 annual grant will receive only $2,000 while in college and be required to fund the additional $1,000 through loans or from his or her own pocket. Although this money, which may accrue to $4,000 or more during a college career, will be reimbursed with interest upon graduation, this means more loans, debt, and hassle for students and their families. This measure significantly impacts low- and moderate-income students; the lower your income, the more TAP you receive, the more you are impacted by the plan. It makes no sense to us to make attending college harder for lower-income students.

The Governor packages his plan as an effort to boost "graduate rates" by rewarding college performance. The Governor proposes that students will receive their remaining TAP awards upon graduation. These students need financial aid while they’re in school, not after they graduate.

Students receiving TAP also don’t need more incentives to graduate. These students’ academic "performances" are already tracked since they must maintain a "C" average in order to keep their awards, be considered in "good academic standing" and are limited to receiving aid for no more than 5 years. Most students attempt to get the best grades possible, learn a lot, and work hard to receive a B.A., which hopefully means a good job with a good salary in the future. Furthermore, New York State students, on average, take out $4,357 in loans each year, the third highest amount in the nation. Increasing this debt should not be part of the bargain for achieving a college diploma.

NYPIRG urges you to reject the Governor’s TAP proposal.

CUTS TO OPPORTUNITY PROGRAMS AND CHILDCARE

The state’s poorest students are also getting hurt through cuts to opportunity programs and childcare. Opportunity programs such as EOP, HEOP, SEEK, College Discovery, STEP, and C-STEP serve over 26,000 students statewide and provide academic support through tutoring and counseling as well as financial assistance, often in the form of book vouchers. Unfortunately, Governor Pataki’s 2002-03 budget proposal does not restore last year’s "bare-bones" budget cuts of $13.8 million to these programs and further cuts SUNY’s EOP program by $235,000.

Individuals responsible for running these opportunity programs have testified to their inability to continue to provide their current students with the highest quality of support in the wake of the 21 percent reduction found in last year’s budget. There have been announcements that, due to the cuts, their programs are closed to new, transfer, and readmit students. For example, there is no more tutoring offered at many SUNY campuses; book vouchers at CUNY have been cancelled; and fewer counselors can be hired. Obviously, cuts to these programs greatly affect the academic lives, and thus the future success, of those students most in need of assistance.

NYPIRG urges the legislature to, at the very least, restore the $13.8 million to opportunity programs.

Childcare is another "opportunity program" for students at SUNY and CUNY. Childcare provides a subsidized, convenient, and professional daycare option for student-parents. This past year, childcare was cut by 42 percent and in his Executive Budget Governor Pataki chose to maintain this low level of funding. Nearly 60,000 CUNY students are parents and they make up 30 percent of the student body. NYPIRG urges the Senate and Assembly to restore cuts to childcare and to increase funding to meet appropriate 2002-03 levels. Cuts to childcare and opportunity programs simply compromise the mission of access to state’s universities.

NYPIRG urges you to restore cuts to childcare programs.

INADEQUATE FUNDING OF OTHER PARTS OF THE TAP PROGRAM

The Assembly and Senate budgets should propose to remove the "upper-cut" reduction in the award for third- and fourth-year students. This penalty is illogical as the overall cost of higher education increases for upper-level classes: books are more expensive and coursework is more difficult, making it harder for students to juggle a job on the side. We applaud the legislature for reducing this penalty in the past, and urge your support for its total elimination. In addition, the part-time TAP pilot project currently in place at CUNY must be expanded to SUNY and the independent colleges. It is simply doesn’t make sense that many students take on a full course load of 12 credits of more just so that they can receive financial aid.

Finally, Governor Pataki’s proposal doesn’t increase funding for Graduate TAP, a program with abysmally low awards at $75 minimum and $500 maximum. What’s more, the income eligibility ceiling remains at $22,000, the same level it has been since the early 1970’s. A lot has changed since then and this funding level must change as well.

INADEQUATE FUNDING FOR SUNY AND CUNY LEADS TO REDUCED SERVICES AND HIGHER STUDENT FEES

SUNY and CUNY suffer from a lack of state funding. Students are taking the hit in two ways: they’re paying more out of their pockets and are getting less and less for their money as the quality of their higher education suffers with lack of funding. Students can’t register for classes they need; they can’t graduate when they’d like to; they don’t receive the appropriate attention from their overworked and overstretched professors; they’re learning in dilapidated buildings.

SUNY and CUNY need more state funding to continue to be able to provide an affordable, accessible, and quality higher education. In the 2001-02 final state budget, funding for SUNY and CUNY increased, respectively, by four and one percent, below the rate of inflation. Even with these increases, New York State still ranks at the bottom of the barrel (47 out of 50) for state funding for higher education at a mere $5.14 per $1,000 taxable income.

Lack of ample state funding for higher education requires the students to pay more. In the past ten years, as state support for higher education has moved slower than a snail’s pace (a mere 19.2 percent increase, the third slowest in the country ), tuition and fees in New York have skyrocketed (by a whopping 156 percent, one of the highest in the nation ). Public college tuition and fees are now the 14th most expensive in the nation. Rather than raise tuition to offset inadequate state funding, SUNY and CUNY have increased the cost for students through fees. Recently, the Associated Press reported that fees are the "quiet SUNY cost increases," noting that SUNY’s fees have increased, on average, by $86.40 each year since 1995-1996.

Community colleges are hurting.

New York’s community colleges are also suffering. Governor Pataki’s budget keeps state funding for New York’s community colleges at $2,250 per FTE or full-time equivalent. This number allows for no increase for the past two years, not even taking into account annual inflation. Moreover, the $2,250 per FTE does not meet the legally mandated one-third of funding, requiring students to pay more than their mandated one-third. In addition, there is no mention in the budget to require local municipalities and governments, such as New York City, to pay their one-third of the operating costs. New York State’s community colleges are already the fifth most expensive in the nation.

NYPIRG urges the state to pick up more of the tab and increase funding for community colleges by $130 per FTE, as recommended by SUNY and CUNY, and increase four-year operating allotments to at least meet inflation. We also urge you and the Governor to work to decrease the burden on community college students by increasing funding for community colleges to meet inflation, and urge local municipalities to pay their share.

In addition, in order to benefit students at New York State’s independent institutions, we urge the legislature to restore and increase funding for Direct Institutional Aid or Bundy Aid.

RECOMMENDATIONS

Therefore, NYPIRG recommends that the Assembly and Senate adopt a budget that reflects the following points:

1. Reject the Governor’s Tuition Assistance Program (TAP) proposal.
   
2. Restore "bare bones" budget cuts to opportunity programs and childcare.
   
3. Strengthen Graduate TAP:
   
1. a. Increase funding for Graduate TAP to $3,000.
   
2. b. Raise the income eligibility ceiling from $20,000.
   
4. Strengthen Undergraduate TAP:
   
1. Ensure that the minimum award level increases to $500 from $425 as scheduled.
   
2. Maintain maximum awards at current level of $5000.
   
3. Eliminate the TAP "upper cut."
   
4. Expand part-time TAP to include SUNY and private colleges.
   
5. Increase state spending for community colleges.
   
6. Increase base funding for CUNY and SUNY.
   
7. Increase funding for full-time faculty.
   
8. Increase funding for Bundy Aid.

Thank you for this opportunity to testify.