FY2011 House 2 Budget Recommendation:
Issues in Brief
Deval L. Patrick, Governor
Timothy P. Murray, Lt. Governor
Massachusetts’s public higher education system includes 56 campuses, satellites and other classroom locations across the state. The public higher education system is governed by the Department of Higher Education and its Board and is committed to ensuring that all residents have the opportunity to benefit from a post-secondary education that enriches their lives and advances their contributions to civic life, economic development and social progress in the Commonwealth. Budgeting for these institutions is a great challenge, and in previous years, the Department of Higher Education and its Board used two budget formulas – one for the state and community colleges and the other for the University – to determine total operating requirements at each individual campus and then allocated state support in a manner that is transparent, equitable, and is based on quantifiable data. The budget formulas are premised on both aspirational and policy targets, and used a wide variety of financial and institutional metrics to determine total annual operating requirements.
Massachusetts public colleges and universities are funded at levels equal to fiscal year 2009 appropriation levels in the Governor’s fiscal year 2011 budget recommendation. This is possible due to state investment and the use of one-time federal stimulus funds. In fiscal year 2010 and fiscal year 2011, Massachusetts’ colleges and universities will continue to receive funds through the American Recovery and Reinvestment Act (ARRA), State Fiscal Stabilization Fund (SFSF) to preserve budgets at the campuses. This federal legislation allows states to use their allocations from this fund to help restore, for fiscal years 2009, 2010, and 2011, support for public elementary, secondary, and postsecondary education to the greater of the fiscal year 2008 or fiscal year 2009 levels and the funds for higher education must go to directly to “Institutes of Higher Education.” The funds from the SFSF have greatly benefited the higher education community by allowing the Commonwealth to maintain funding commitments to fiscal year 2009 appropriated levels with the use of both General Fund and federal stimulus dollars. Although, the state budget reflects lower appropriations for higher education campuses, federal stimulus funds will be used to ensure each campus remains at fiscal year 2009 levels. Over fiscal years 2009, 2010 and 2011, approximately $380 million in SFSF dollars are expected to be distributed to campuses from the SFSF:
FY2009 GAA | ARRA Support FY2009 & FY2010 |
FY2011 H.2 | FY2011 ARRA | Total FY11 Funding |
|
---|---|---|---|---|---|
Campus Funding TOTAL | 969,709,303 | 284,030,121 | 873,638,528 | 96,070,779 | 969,709,307 |
UMASS and Associated Programs | 502,788,814 | 150,650,190 | 453,471,042 | 49,317,776 | 502,788,818 |
State Colleges | 222,565,327 | 63,569,922 | 200,279,740 | 22,285,587 | 222,565,327 |
Community Colleges | 244,355,162 | 69,810,009 | 219,887,747 | 24,467,415 | 244,355,162 |
SFSF dollars can be spent by campuses for: (1) education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-state students; or (2) the modernization, renovation, or repair of campus facilities that are primarily used for instruction, research, or student housing.
The use of these one-time federal resources while fiscally prudent, presents the potential for some risk and concern within our higher education system. To mitigate this risk and concern in fiscal year 2011, the Commonwealth is investing $134 million of General Fund dollars, and $96 million in State Fiscal Stabilization Funds in Massachusetts colleges and universities to hold these campuses to the fiscal year 2009 appropriated amounts, which total $969 million.
Massachusetts is faring better when compared to some other states in the nation. The Center on Budget and Policy Priorities reports that 36 states have cut assistance to public colleges and universities, resulting in reductions in faculty and staff in addition to tuition increases. The University of California is increasing tuition by 32 percent and tuition at all 11 public universities in Florida increased by 15 percent for the 2009-2010 school year. Students in Washington and other states face significant tuition increases as well, costing families hundreds of dollars per year and Michigan and New Mexico have made deep cuts to need-based financial aid programs. [ Center on Budget and Policy Priorities ]
The Governor’s fiscal year 2011 budget recommendation includes a consolidated budget structure to fund the 15 community colleges and 9 state colleges. Over time individual line items have been created in an effort to highlight a specific program or service. This structure places limitations on an agency head’s ability to direct resources where they may ultimately be needed. Although a consolidated approach is presented in the budget, the accounting of spending in the state’s accounting system is still managed in a way that clearly delineates how dollars are spent. The consolidated approach provides maximum flexibility to the Education Secretariat and the Department of Higher Education to manage within limited resources. In these challenging economic times, more students are considering attending our state’s colleges and universities, seeking an affordable, high-quality education. As more students look toward our public higher education system, the campuses are met with the challenge of expanding their delivery of a world-class education with diminishing resources. These real challenges and the recognition that each campus has unique programs and finances led to consolidating the disparate accounts into 2 separate line items.
7109-0100 | Bridgewater State College | 7100-3000 | Massachusetts State Colleges |
---|---|---|---|
7110-0100 | Fitchburg State College | ||
7112-0100 | Framingham State College | ||
7113-0100 | Massachusetts College of Liberal Arts | ||
7114-0100 | Salem State College | ||
7115-0100 | Westfield State College | ||
7116-0100 | Worcester State College | ||
7117-0100 | Massachusetts College of Art | ||
7118-0100 | Massachusetts Maritime Academy |
7502-0100 | Berkshire Community College | 7100-4000 | Massachusetts Community Colleges |
---|---|---|---|
7503-0100 | Bristol Community College | ||
7504-0100 | Cape Cod Community College | ||
7505-0100 | Greenfield Community College | ||
7506-0100 | Holyoke Community College | ||
7507-0100 | Massachusetts Bay Community College | ||
7508-0100 | Massasoit Community College | ||
7509-0100 | Mount Wachusett Community College | ||
7510-0100 | Northern Essex Community College | ||
7511-0100 | North Shore Community College | ||
7512-0100 | Quinsigamond Community College | ||
7514-0100 | Springfield Technical Community College | ||
7515-0100 | Roxbury Community College | ||
7516-0100 | Middlesex Community College | ||
7518-0100 | Bunker Hill Community College |
The Commonwealth and the rest of the country continue to face real economic challenges. In this environment the public higher education institutions will need to deliberately and creatively manage their budgets. The individual institutions will be faced with unique challenges due to anticipated enrollment increases, various capacity capabilities of the campuses, and different levels of reserve funds. The new consolidated line item structure presents a significant shift in the approach to budgeting that will allow campuses to make unique proposals to the Department of Higher Education and the Executive Office of Education to request funds based on the factors that drive costs at each of the campuses. The consolidated structures will assist the institutions in continuing to provide high-quality education at a competitive level.
Prepared by Brian Gosselin, Executive Office for Administration and Finance ·
www.mass.gov/budget/governor
For more information contact: contactanf@massmail.state.ma.us (617) 727-2040