It’s official: Governor David Paterson and the New York State Legislature have agreed to take 90 percent — $62 million — of this spring’s State University of New York and City University of New York tuition hike, a Paterson spokesman told Pipe Dream.
Last year, SUNY trustees adopted a statewide tuition increase of $310 per semester for in-state undergrads and $1,130 for out-of-state undergrads, effective spring 2009 and into the next academic year.
Of the $62 million, $6 million comes from Binghamton University, in what the BU President Lois DeFleur has called a “specialized tax.” A spokesman for State Sen. Dean Skelos (R-N.Y.) called the agreement a “raid on SUNY.”
This plan is part of a long-delayed package of spending cuts and transfers to close the state’s $1.6 billion deficit. The decision was easily reached Tuesday, and talks are now underway to solve the anticipated $13 billion deficit for 2009-2010.
“While I applaud the Legislature for working with me to take the prudent and responsible actions necessary to close this year’s deficit,” Paterson said, “I know that we all recognize an even greater task awaits us in the weeks ahead.”
Paterson has also proposed to take 80 percent, or $122 million, of the tuition hikes for 2009-2010.
The state’s higher education system already endured $210 million of cuts in state support this year, including $6.5 million to BU.
The 2008-2009 package included $380 million cut administratively by the governor’s office, $306 million “swept” from the New York Power Authority fund and $75 million from the Environmental Protection Fund. About $800 million of the savings are expected to recur the following year.
But when it comes to taking tuition money, Paterson’s proposal is innovative, according to spokesman Jeffrey Gordon. In the past, the state would take 100 percent of SUNY tuition hikes and put it toward state General Fund spending.
“This is the first time in 30 years that tuition has been tied to an investment plan that will send money back towards the SUNY and CUNY system,” Gordon said. “As the economic situation improves, the plan is to continue to increase the percentage of tuition money going towards the SUNY system.”
Skelos told reporters he did not see the bill until noon on Tuesday, the day of voting. He believes Republicans were left out of the thought process for the bill, he said.
“[State Senate] Minority leader Dean Skelos and the rest of the New York state Republicans opposed this provision that was in the deficit reduction package,” Scott Reis, a spokesman for Senator Skelos’ office, said. “It was a raid on SUNY. The money will now be used for expenses wholly unrelated to the colleges and it breaks a promise to working middle class families.”
The state could save over $180 million for the current and following fiscal years from the tuition takings. However, the state will also be increasing its Tuition Assistance Program (TAP) spending, so savings for the two fiscal years will amount to $150 million.
“Governor Paterson’s approach has been to continue to support his core principles while prudently managing the State’s finance in these hard times,” Gordon said. “This is one of hundreds of proposals to reduce the cost of state government.”
— Information from The Associated Press contributed to this report.