According to a new report, New Jersey could be a poster child for the perils of poorly funded higher education. But that same report could become a pioneering part of the solution.

In "Flunking Out: New Jersey's Support for Higher Education Falls Short," the New Jersey Policy Perspective shows a shrinking share of state budget allocated to higher education. Since 1983, the portion New Jersey sets aside for higher ed has diminished by half; in 2004, even the lowest community college tuitions represent 34 percent of the state's poorest families.

One result: New Jersey sends 36 percent of its students to out-of-state colleges and universities -- more than any other state. Enrollment capacity is rock-bottom: state schools reject 75 percent of the New Jersey residents who apply. New Jersey ranks 45th in the nation in its capacity to serve higher ed students.

"Underfunding of higher education is, unfortunately, a national trend," says Amy Bahruth, president of Rutgers' Part-Time Lecturer Faculty Chapter, AAUP/AFT.

"The problem in New Jersey is that we were behind most other states to begin with so our case is more extreme."

The biggest issue, as union leaders see it, is a lack of specific funding. "There should be a dedicated source of funding," says Lisa Klein, president of Rutgers AAUP/AFT. "That way [higher ed] is seen as a priority." Higher ed can't wait until the economy is up, she adds. "It has to be something that because of where it's located in the budget, it's secure." Klein and other leaders served as sources on the recent report.

Nick Yovnello, president of the New Jersey Federation of Teachers/AFT and president of the Council of New Jersey State College Locals/AFT, hopes that "New Jersey Flunks" will be a wake-up call for legislators. "I'm hoping that people who read it are startled into some kind of positive action," he says. "It's time for [education] to be part of the mix."

The report suggests several specific solutions for the funding crunch, including retention of a corporate business tax slated to expire at the end of the year ($300 million); elimination of a 401(k) income tax deduction ($500 million); shifting county college aid to a designated property tax relief fund (instead of the general fund, where it must compete with other state needs) ($224 million); extension of the "millionaires' tax" ($342 million); extension of sales tax to exempt services like dry cleaning ($275 million) and professional services ($900 million to $2.2 billion); and extending sales tax to gasoline and diesel fuels ($540 million).

Benefits from such sources are clear: keeping higher ed within state borders is good for the economy. Rutgers alone contributes $2.8 billion a year to the state's economy. Graduates make more money, have higher rates of voting and volunteerism, lower rates of public assistance and crime. "It seems to me to be a no-brainer to support investing in a system that brings so much good to everyone in the state," says Bahruth.

AAUP/AFT leadership is continuing to meet with legislators to ensure exactly that. [Virginia Myers Kelly]

June 13, 2006