skip navigation
NYS Division of the Budget: Andrew M. Cuomo, Governor; Robert L. Megna, Budget Director Division of the Budget Home Page

NYS Division of Budget

Andrew M. Cuomo, Governor
Robert L. Megna, Budget Director

2010-2011 Executive Budget – Briefing Book


Higher Education

  • State University of New York
  • City University of New York
  • State University Construction Fund
  • Higher Education Services Corporation

I. Overview

New York State’s higher education institutions educate more than 1.2 million students. The State University of New York (SUNY) and the City University of New York (CUNY) administer 51 four-year colleges and graduate schools that provide over 400,000 students with a wide array of undergraduate, graduate degree, and first professional educational opportunities. SUNY and CUNY also support 36 community colleges, which serve more than 330,000 students. More than 520,000 students attend one of the more than 100 private colleges and universities across New York State.

In order to help make higher education financially attainable for college students, the Higher Education Service Corporation (HESC) provides a broad range of financial aid services. HESC administers and guarantees more than 700,000 loans made annually under the Federal Family Education Loan (FFEL) program, and oversees a variety of State-funded financial assistance programs, including the Tuition Assistance Program (the largest and most generous need-based program in the country), the New York Higher Education Loan Program (NYHELPs), the Aid for Part Time Study program, and 16 different scholarship and award programs. HESC also partners with the Office of the State Comptroller in administering the College Choice Tuition Savings Program.

II. History/Context

Enrollment at both SUNY and CUNY has shown steady growth, increasing 12.5 percent since 2003, at four-year and graduate colleges. Community college enrollment has increased 26 percent during this same period. Concurrently, State support has increased 40 percent for four-year and graduate colleges and 33 percent for community colleges. Additionally, the State has devoted substantial support to SUNY's and CUNY’s physical infrastructure, providing $11.8 billion in new capital project funding for senior and community colleges since 2003-04.

III. Proposed 2010-11 Budget Actions

The 2010-11 Executive Budget proposes the most significant overhaul of New York’s public higher education system in a generation. The New York State Public Higher Education Empowerment and Innovation Act will establish a new tuition policy that allows for predictable and modest annual tuition increases; authorizes differential tuition that will take into account the unique mission, cost structure and needs of an individual campus; moves revenue from tuition and self-supporting programs off-budget in order to remove it from the budget process; and provides operational flexibility similar to that given to other public higher education systems by streamlining the procurement of goods and services, the procurement and financing of construction services, and the leasing of campus property. A separate section of this briefing book outlines this proposal.

With these reforms, SUNY and CUNY senior colleges can better plan and manage the actions proposed in the Executive Budget, which would reduce overall 2010-11 General Fund support by $212 million on a State Fiscal Year (SFY) basis and $254 million on an Academic Fiscal Year (AFY) basis.

IV. Summary of Spending (All Funds)

Category 2009-10
($ in millions)
2010-11
($ in millions)
Change
Dollar
(in millions)
Percent
Higher Education 3,278 3,087 (191) (5.8)
SUNY 1,567 1,495 (72) (4.6)
CUNY* 780 748 (32) (4.1)
HESC 931 844 (87) (9.3)
* Excludes directly appropriated fringe benefit funding

V. Major Initiatives

Gap Closing Actions

Proposal 2010-11
($ in millions)
2011-12
($ in millions)
Reduce Support for SUNY/CUNY Senior Colleges 143 182
Reduce Support for SUNY Statutory Colleges at Cornell and Alfred Universities 15 18
Reduce Base Aid for SUNY/CUNY Community Colleges 57 76
Use Federal ARRA Funds to Support Community College Base Aid 50 0
Reduce Maximum TAP Award for Two-Year Degree Programs 20 28
Reduce TAP Awards by $75 17 24
Include All Private Pension and Annuity Income in TAP Eligibility Determinations 1 2
Increase Academic Standards for Continued TAP Award Eligibility 6 8
Eliminate New Merit Award Scholarships 5 10
Establish Default Parity for TAP 3 4
Eliminate TAP for Graduate Students 2 3
Create New TAP Award Schedules for Certain Financially Independent Students 1 2
Provide TAP to Students Attending Certain Institutions
Not Under the State Education Department’s Direct Supervision
(13) (18)
Other Higher Education Savings Actions 14 10
Total 321 349

 

  • Reduce Support for SUNY/CUNY Senior Colleges. The Executive Budget reduces General Fund support for SUNY ($95 million State Fiscal Year, $117.9 million Academic Fiscal Year) and CUNY ($47.7 million SFY, $63.6 million AFY) senior colleges by a total of $142.7 million SFY ($181.5 million AFY). Additionally, the budget reflects further SFY appropriations reductions of $52 million ($30.9 million SUNY, $20.8 million CUNY) related to negotiated personal service savings (see the “Workforce” section of this briefing book for further discussion). After these reductions, $946 million would be provided to SUNY and $577 million to CUNY. (2010-11 Savings: $142.7 million; 2011-12 Savings: $181.5 million)
  • Reduce Support for SUNY Statutory Colleges at Cornell and Alfred Universities. State support is provided through SUNY to five statutory colleges, the College of Ceramics at Alfred University, and four at Cornell University. In addition, the State provides support for Cornell’s land grant mission. The Executive Budget reduces this support by $14.9 million SFY ($18.5 million AFY). After this reduction, $83 million would be provided for Cornell's statutory colleges, $49 million for Cornell land grant, and $8.7 million for the College of Ceramics. (2010-11 Savings: $14.9 million; 2011-12 Savings: $18.5 million)
  • Reduce Base Aid for SUNY/CUNY Community Colleges. The Executive Budget reduces SUNY and CUNY community college base aid by $285 per full-time equivalent (FTE) student from $2,545 per FTE to $2,260 per FTE. (2010-11 Savings: $56.7 million; 2011-12 Savings: $75.6 million)
  • Use Federal ARRA Funds to Support Community College Base Aid. An additional $50 million in Federal American Recovery and Reinvestment Act (ARRA) funds would be used to support community college base operating aid payments, mitigating potential further reductions. (2010-11 Savings: $50.1 million; 2011-12 Savings: $0 million)
  • Reduce Maximum TAP Award for Two-Year Degree Programs. The Executive Budget reduces the maximum TAP award for students enrolled in a two-year degree granting program from $5,000 to $4,000. (2010-11 Savings: $19.6 million; 2011-12 Savings: $28.0 million)
  • Reduce TAP Awards by $75. The Executive Budget reduces all TAP awards by $75. (2010-11 Savings: $16.5 million; 2011-12 Savings: $23.6 million)
  • Include All Private Pension and Annuity Income in TAP Eligibility Determinations. Currently, for individuals 59.5 years of age and older, the first $20,000 of private pension and annuity income is excluded for purposes of calculating TAP award eligibility levels. The Executive Budget eliminates this exclusion. (2010-11 Savings $1.4 million; 2011-12 Savings $2 million)
  • Increase Academic Standards for Continued TAP Award Eligibility. The Executive Budget would increase minimum academic standards for non-remedial students to maintain TAP eligibility. Such students would be required to earn at least 15 credits and a 1.8 Grade Point Average (GPA) after two semesters of study. This proposal would promote improved academic performance and on-time graduation. Current standards would remain unchanged for remedial students. (2010-11 Savings: $5.9 million; 2011-12 Savings: $8.4 million)
  • Eliminate New Merit Award Scholarships. The Executive Budget eliminates all new awards for the Scholarship for Academic Excellence, and for Math and Science Teacher Incentive Scholarship programs beginning in the 2010-11 academic year. (2010-11 Savings: $4.7 million; 2011-12 Savings: $10.0 million)
  • Establish Default Parity for TAP. Currently, students in default on loans guaranteed by HESC are ineligible to receive TAP payments, but students in default on loans guaranteed by organizations other than HESC retain TAP eligibility. The Executive Budget provides that all students in default on statutory New York State or Federal loans would be ineligible for TAP awards, regardless of the guarantor. (2010-11 Savings $2.9 million; 2011-12 Savings $4.1 million)
  • Eliminate TAP for Graduate Students. The Executive Budget eliminates TAP award eligibility for graduate students. The average graduate TAP award is $387. (2010-11 Savings $2.1 million; 2011-12 Savings $3 million)
  • Create New TAP Award Schedules for Certain Financially Independent Students. The Executive Budget creates a new TAP schedule that increases the maximum award from $3,025 to $5,000 for orphans/wards of the court and other students under 22 years of age who meet certain criteria that establishes their financial independence. These students would receive an award similar to that for students who are declared as dependents by their parents. This proposal also decreases the maximum award for independent students who are married without children from $5,000 to $3,025, which is consistent with the award provided to single adults with no children. (2010-11 Savings: $1.3 million; 2011-12 Savings: $1.9 million)
  • Provide TAP to Students Attending Certain Institutions Not Under the State Education Department’s Direct Supervision. Currently, there are some income-eligible students who attend not-for-profit institutions of higher education that cannot receive TAP because their schools, although authorized by the State Education Department (SED) to offer post-secondary education, are not under SED’s direct supervision. The Executive Budget would effectively lift the statutory prohibition against providing TAP to otherwise income-eligible students at certain specialized faith-related institutions that primarily offer religious instruction or train members of the clergy. (2010-11 Cost: $12.8 million; 2011-12 Cost: $18.3 million)
  • Other Higher Education Savings Actions. The Executive Budget reduces HESC’s operating budget by $1.5 million, which would be managed through reduced non-personal services spending and increased reliance on shared services. The Executive Budget also reflects spending re-estimates related to TAP and the New York Higher Education Loan Program (NYHELPs). (2010-11 Savings: $13.6 million; 2011-12 Savings: $9.5 million)

 

    Briefing Book Table of Contents    |    Entire Briefing Book (PDF)

 

Disclaimer    |    Privacy Policy    |    Contact Information    |    Site Map    |    Printing Instructions    |    Accessibility