It’s that time of year when leaves are turning color, autumn is around the corner, and colleges have opened across New York. A college experience promises to dramatically impact students’ lives, often shaping their career paths and opening their minds to new ideas. Colleges help mold the state’s – and the nation’s – future civic and business leaders.
Colleges not only educate the adult leaders of the future, but they are also dynamic “economic engines.” These economic engines create jobs that stimulate and anchor local economies. Independent colleges and universities in New York State contributed an estimated $97 billion to the state’s economy and supported more than 400,000 jobs. The State University of New York contributes as well: SUNY’s economic impact in the state is $31 billion. For every $1 invested in SUNY, New York State’s economy benefits the equivalent of $8.67 and is responsible for nearly 2% of the gross state product.
These institutions (as well as the City University of New York) provide cultural and educational resources to the larger community, contributing to the quality of life in their communities. Both sectors – independent colleges and SUNY – exist side-by-side across the state and both contribute mightily to the state.
When New York State decided to expand the State University system in the middle of the 20th Century, not surprisingly independent colleges were concerned that their finances would be undermined by the public sector. In order to assuage those concerns, the state made a promise to the independent sector to offset any financial difficulties with financial support.
New York State established the Unrestricted Aid to Independent Colleges and Universities (known as “Bundy Aid”). Bundy Aid directs financial support to independent colleges. The program was established in 1968 with the goal of providing an answer to the question “how the State can help preserve the strength and vitality of our private and independent institutions of higher education….” In response, the state decided that “the moderate but real level of need calls for direct assistance from New York to private colleges and universities.”
Once a vital component of independent colleges’ finances, the program has been decimated by cuts over the past four decades. The peak state support occurred during the 1989-90 fiscal year, when nearly $114 million was appropriated. During the current fiscal year, that amount has been reduced to under $20 million. If New York had merely kept pace with inflation, the amount of Bundy Aid would be around $260 million – not less than $20 million.
The result? Not surprisingly, many colleges – usually small ones – have seen their finances become damaged or worse. According to New York education officials, over the last 18 years, New York has lost seventeen independent colleges, universities, and other degree-granting institutions. Ten of those seventeen shut their doors in only the last few years, throwing their students into educational uncertainty and potentially, entire communities into economic insecurity. Recent examples of colleges closing includes the College of St. Rose in Albany, N.Y. and Wells College in Aurora, N.Y., both in 2024. In 2023, two other colleges closed their doors.
Those campuses are, unfortunately, not alone when it comes to financial concerns. In a recent review of private colleges conducted by Forbes magazine, nineteen of New York’s 72 colleges and universities (26%) scored poor financial grades (C- or D).
Why should we care?
As noted, colleges not only educate the leaders of the future, but also provide reliable, productive economic development support to communities all across the state. There are also cultural hubs, which enrich those communities. Based on its track record, New York’s elected leadership hasn’t considered the independent sector of higher education an important component of the budget. But as independent campuses close and others struggle, New York’s decisions are costing jobs and economic activity. It’s long past time for New York to honor the promise made in 1968 and restore support to the state’s struggling independent sector.