Higher Education is the big loser in this year's round of state budget cuts

State higher education systems emerged from a rocky budget-setting season bruised and battered. In the third consecutive year of state fiscal distress, legislatures showed a painful willingness to turn to higher education either as a source of major cuts or as a way to generate income through fees and tuition increases.

On July 1, the State Higher Education Executive Officers (SHEEO) released a survey showing how the picture is shaping up for 2003-04. SHEEO collected information from 44 states, 42 of which could report hard budgets. Of those, 25 reported decreases in higher education state spending. The cuts averaged 5 percent, but went as deep as 26 percent in Colorado, for example. All in all, and not including California and New York, SHEEO predicts a drop of 3 percent in the total that states will spend on higher education this year. That will result in a shaving of at least $1.2 billion from the $42 billion spent last year.

Enrollment caps, early retirement buyouts, hiring and salary freezes and layoffs are some of the ways public systems are responding to the cuts. But the big story this year is most states' recourse to some of the steepest tuition increases in a decade.

In coalition with students and their families and other public education advocacy groups, the AFT worked hard to persuade legislators not to lay waste to children's futures. Here are some of the stories of how our unions fared in the budget battles of 2003.
 

ALABAMA
Governor seeks a tax increase

Gov. Bob Riley, a Republican, and the Democratic Legislature have agreed to close their $500 million deficit with a tax increase. The $1.2 billion tax package reorganizes the state's tax structure with a property tax increase and a reduced sales tax.

If the voters approve the package, as is required by the state constitution, "this tax package will amount to a windfall of sorts for public education," says Derryn Moten, chairman of the Alabama State University faculty senate and co-president of the Faculty Staff Alliance/AFT. The union--which has built a political presence in the state through its annual Higher Education Day lobbying event with students, staff and faculty--is working in coalitions with other public institutions to convince voters of the utter necessity of this tax package, says Moten. The referendum takes place Sept. 9.
 

ALASKA
Empty promise

Although Gov. Frank Murkowski campaigned last year with a promise to increase University of Alaska funding by 5 percent, a $550 million deficit has thrown a wrench into those works. The Alaska Legislature voted to increase funding for higher education by 0.66 percent, and the university board of regents voted last November to raise tuition by 10 percent.

So far, the budget troubles haven't struck at higher education staff, says Bob Congdon, president of the Alaska Community College Federation of Teachers. On the other hand, current contract negotiations could be affected, he says.
 

CALIFORNIA
Making college less affordable

California's dire budget situation has sent education supporters to the streets repeatedly during this legislative session. The activism of thousands of AFTers and others who turned out for marches in Sacramento and Los Angeles seemed to have an effect on Gov. Gray Davis's budget proposals, but when all was said and done on July 31, the final budget was austere.

To close a $38.5 billion shortfall, the governor and legislators agreed on $700 million in cuts to the three higher ed systems. The double whammy for students is that as programs are decimated, they'll be facing some of the biggest tuition hikes in the country--30 percent at the University of California and at California State University. The UC system has been cut by $248 million or 8 percent; Cal State is working with $345 million, or a cut of 13 percent. At the community colleges, the cut is smaller--$86 million or a 1.7 percent reduction. Students will pay $18 per  credit instead of $11.

"We're not real pleased with the results," says Marty Hittelman, president of the California Federation of Teachers Community College Council. With the fee and tuition hikes, "a lot of kids won't be able to go to school."
 

FLORIDA
Tuition hikes and tax cuts

The Florida Legislature cut state allocations to higher education by $111 million and agreed to tuition increases. That cuts $40 million from universities and raises tuition by a minimum of 8.5 percent for university students, with an additional 6.5 percent increase for graduate students and out-of-state undergrads. Community college students will face a 7.5 percent tuition increase. Despite an approaching enrollment surge, the state university presidents agreed over the summer to enrollment caps that will affect tens of thousands of students.

Lawmakers recently passed a $300 million tax break for wealthy Floridians and bypassed opportunities to close tax loopholes, refusing to come to terms with the root cause of the shortfall--a lack of revenue.

"If Florida doesn't adopt a different direction very quickly, higher education in this state, in terms of the public, will be a thing of the past. We are definitely on a road to disaster," says Andy Ford, president of the Florida Education Association/AFT.
 

ILLINOIS
Budget cuts hurt faculty raises

With his $52 billion budget, Illinois Gov. Rod R. Blagojevich resolved a $5 billion shortfall by making harsh cuts to state universities and colleges.

In fact, for three years, Illinois public higher education budgets have been cut. This year, institutions were appropriated $2.4 billion in state funds, a 2.9 percent decrease. They responded with tuition hikes, increased class sizes and possible layoffs of some academic support staff.

Illinois community colleges have taken a slightly harder hit. As a result of a 3.2 percent budget cut, hundreds of full-time faculty and staff are being laid off, and some programs and courses have been scrapped or cut back.

Negotiated faculty salaries and benefits also are affected. Salary increases are contractually tied to state appropriations earmarked to cover the cost. In this budget cycle, however, the Illinois Board of Higher Education (IBHE), under the direction of the governor, allocated only lump sums and did not provide detailed budgets to universities and colleges.

"We have no way of enforcing even a minimal cost-of-living increase for our members," wrote Sue Kaufman, president of University Professionals of Illinois /AFT, in a letter to the governor in May.

Retirement benefits for Illinois education employees may also be in question. The state is underfunding its five pension systems and is tinkering with the way the State University Retirement System (SURS) invests funds. "This has us very concerned," says Kaufman. "UPI was the first education labor union to endorse Gov. Blagojevich. Clearly, we expected and continue to expect a whole lot more from him and his administration."
 

MASSACHUSETTS
Deep deficits erode the system

Higher education has had to give up 18.5 percent of its FY 2004 budget to deal with a $3 billion budget deficit. But that might not be enough for Republican Gov. Mitt Romney, who is threatening to veto the budget because he believes legislators have not cut enough.

"It's pretty bad," says Dan Georgianna, president of the University of Massachusetts-Dartmouth Faculty Federation (UMFF). For the last 10 to 12 years, he says, the portion of the state budget funding higher education has decreased from 8 percent to 3 percent.

The cuts were made despite a full-fledged campaign by UMFF and others to secure funding for the UMass system. Earlier, UMFF and several other AFT locals joined a coalition of 25 higher education unions to push for more funding. The coalition was behind half-hour walkouts on the same day on all 29 UMass campuses as well as organizing a mass rally of 4,000 at the Statehouse.

"All of higher education [in the state] is going into a third year without contract funding, resulting in layoffs, pay cuts and freezes, and increased workloads and class sizes," says Georgianna. Worse, for the fourth time in the last five years, early retirement buyouts have decimated the teaching force. This time, 15 percent of the faculty are taking early retirement--about 1,000, nearly half of all full-time faculty-- and only 20 percent of those going into retirement are allowed to be replaced under state law.
 

MICHIGAN
"Taxes are not evil"

After difficult and partisan negotiations between Democratic Gov. Jennifer Granholm and Republican lawmakers, the state Legislature approved an $8.5 billion budget. To close a projected $460 million deficit, however, deep cuts were required, including a 5 percent to 7 percent decrease for state higher education.

"The cuts are having serious effects throughout the state," says John McDonald, president of Henry Ford Community College Federation of Teachers (HFCC-FT). "We had to renegotiate a five-year contract, take a one-year pay freeze and postpone filling a number of positions."

In addition, starting faculty salaries have been dramatically reduced by $4,000 to $5,000. And, as is the case with many other colleges and universities across the nation, those hired to replace retiring faculty are often adjunct nontenure track, reports McDonald.

The Michigan Federation of Teachers & School Related Personnel sponsored a rally at the state Capitol to protest the funding cuts in both K-12 and higher education. More than 300 demonstrators, including representatives from several higher education locals, took part.

David Hecker, president of MFT&SRP, noted that one of the most important objectives of the rally was to press legislators to find ways to increase state revenues by closing loopholes and increasing taxes. "People need to know that Ôtaxes' is not an evil word and that they are needed to enhance services," he says. "We are hoping for a positive response from both the governor and lawmakers."
 

MONTANA
The toll of years of underfunding

Montana's Legislature this spring closed a $232 million gap in the 2005 biennial budget through a series of sin tax increases and funding cuts, ultimately passing a $6.3 billion two-year budget. Republican Gov. Judy Martz and the Republican Legislature did not cut funds from higher education, but the negligible increase does not even cover the rate of inflation.

This budget, combined with rising enrollments and years of inadequate funding, has hit the state university system hard. The system now faces a

$40 million deficit, $33 million of which will be reduced through tuition increases. Montana State University has already announced it will raise tuition by 24.5 percent during the next two years--coming on top of a 30 percent increase in the past two years--and other state colleges will be forced to make similar increases.

Eric Feaver, president of the Montana Education Association-Montana Federation of Teachers (MEA-MFT), notes that this is a decade-long trend--essentially increasing tuition 300 percent at Montana universities. In addition to the tuition increases, the state plans to plug part of the remaining shortfall by freezing wages for all state employees until January 2005.

The MEA-MFT has responded to the crisis by joining 12 other education-related organizations in a coalition, Stand Up for Education (SUFE), to improve the status of education in Montana.
 

NEW JERSEY
No cuts, but no help either

After nearly three weeks of gridlock in June, New Jersey legislators concluded deliberations in mid-July to pass a $24.1 billion budget.

The Legislature was dealing with a $5 billion budget gap. It was able to offset some of the red with $600 million in new taxes and fee increases on hotels, casinos and cigarettes, as well as cuts in other areas. Although no cuts were made to higher education, the lack of an increase, on top of the 10 percent cut higher ed took last year, leaves colleges and universities on their own to seek supplements to cover the increasing costs of education.

This has caused institutions to implement tuition and fee increases. Most tuition increases hover between 8 percent and 9 percent at both the university and community colleges.

"We view the continual decline of state support with dismay," says Nick Yovnello, president of the Council of New Jersey State College Locals.
 

NEW YORK
Legislators override veto

New York state legislators passed a $93 billion budget in May that Republican Gov. George Pataki fiercely opposed, and then turned around and overrode his veto. Where the governor would have made deep cuts to higher education, the Legislature was much gentler, relying on sales taxes and fees in addition to cuts to help close an $11.5 billion deficit.

Still, in July, both the State and City University of New York systems announced they would raise tuition for the first time in eight years. SUNY's in-state tuition is up 28 percent; CUNY's increased by 25 percent.  The state's community colleges also took a funding hit, and increased tuition by 12 percent.

The legislative battle over the budget was high drama as it unfolded. For the third year in a row, the state was looking at historic deficits. The New York State United Teachers rallied members and an extended family of 40,000 educators, parents, students, school board members, administrators and supporters from every corner of the state to gather in Albany for a "March for Public Education" on May 3. More than 1,000 higher ed unionists swelled the crowd. That show of the power base of support for adequate education funding must have impressed legislators--Republicans and Democrats alike--first in the tough work of crafting a budget, then in overriding the governor's veto.

"The United University Professions applauds the courage of the state legislators from both political parties who stood up for the people of New York," said UUP president and AFT vice president William Scheuerman after the override vote. UUP represents 22,000 faculty and academic professionals at SUNY.

Ellen Schuler Mauk, president of the Faculty Association at Suffolk County Community College/AFT noted that "if the governor's budget had gone through it would have been absolutely devastating."

But the bigger picture is still bleak, notes Scheuerman. "For too long, academic programs have been jeopardized by an inadequate investment of state dollars into the system," he complains.  "This time, it's the students and their parents on whose backs the university is trying to balance its budget. They shouldn't be expected to pay more for less."

Barbara Bowen, president of the Professional Staff Congress at CUNY and an AFT vice president, shares his concerns. Student tuition will make up 45 percent of the CUNY operating budget this year, she says. "The budget reflects one of the greatest drops in state support for CUNY," Bowen points out, shifting the funding burden from the state to "some of the poorest students in the country!" Such a policy, she adds, "is fiscally unsound and unjustifiable politically."

On a brighter note, the UUP was recently able to persuade state legislators to include in the Legislative Green Book (the book of legislative intent) a clause that implies that the Legislature should give public higher education the stability needed to maintain its quality. This particularly means no layoffs in higher education.
 

OHIO
Cuts and caps strain the system

In an attempt to close a $1.1 billion gap in the budget, Ohio state legislators trimmed about $80 million from the Board of Regent's requested budget and Republican Gov. Bob Taft's original proposal. Of a $48.8 billion two-year budget, only $2.44 billion and $2.48 billion were allocated to higher education in fiscal 2004 and 2005 respectively.

The cut came as part of a bipartisan effort to balance the budget without going into debt or raising income taxes. Many Democrats joined the throngs of Republicans, who voted to scale back education funding when they discovered a $1.1 billion shortfall after concessions were made to preserve Medicaid and child care funding, and raise business taxes. Moreover, the Legislature froze tuition increases between 9 percent and 12 percent for fiscal 2004 and 2005, with a few exceptions.

The Ohio Federation of Teachers sponsored a rally on May 15 at the Statehouse. Nearly 1,000 people attended, and legislators, students and parents spoke out about the adverse effects of cutting education funding.

"We put in many months of effort and came out with a mixed bag," says Tom Mooney, president of the Ohio Federation of Teachers and an AFT vice president.
 

WASHINGTON
As state aid falls, tuition rises

Democratic Gov. Gary Locke and the state Legislature passed a $23.1 billion biennial budget, filling a $2.6 billion deficit via cuts, wage freezes and federal aid. Higher education took a $131 million hit, receiving $2.6 billion for the biennium, and the Legislature authorized state schools to raise resident undergraduate tuition by 7 percent each year for each of the next two years. Colleges have tuition-setting authority for all other students.

Higher education staff and faculty will pay for 17 percent of their health costs, a 3 percent increase; the average payment for health coverage per month will increase by $32. All higher education personnel will also forgo a cost-of-living allowance until the next biennium. Meanwhile, the state government handed Seattle-based Boeing Company a $3.2 billion tax break over the next 20 years--$400 million of which will come in the next six.

"The budget is extremely damaging for higher ed in Washington state," says Sandra Schroeder, president of the Washington Federation of Teachers.

Despite these setbacks, education lobbyists in the state managed to take some victories in the budget battle: $10 million allocated toward faculty recruitment and retention at four-year institutions; $2.5 million to raise the salaries of part-time community college faculty; and $2.5 million to adjust the step-increment pay program for two-year college faculty.
 

WISCONSIN
University system feels the pain

To cover the $3.2 billion deficit, both the governor and legislators opted to slash programs instead of increasing sales, income, corporate or property taxes. State higher education programs were among the hardest hit, with nearly $250 million cut for the biennium 2003-05.

The cut caused the University of Wisconsin (UW) system to implement one of the largest one-year increases in undergraduate tuition in 20 years, ranging from 15 percent to nearly 19 percent across UW campuses.

"The UW system is in big trouble," reports Dave Boetcher, president of Madison Area Technical College Teacher's Union/AFT. However, he notes that despite Gov. Jim Doyle's failure to fully fund all of higher education, no cuts have been made to technical colleges, and earlier in the year the governor was very supportive of equal pay initiatives for part-time faculty.