Thursday, June 9, 2011

Cuomo: 'The Current Tuition System Does Not Serve Our Students, Schools or State'

Governor Introduces Bill to Implement the NYSUNY 2020 Challenge Grant Program

Governor Andrew Cuomo has introduced legislation to implement the NYSUNY 2020 Challenge Grant Program - a joint program between the Governor and State University of New York (SUNY) - that will incentivize bottom-up, individualized long-term economic development plans on SUNY campuses and the surrounding communities.

The NYSUNY 2020 Challenge Grant Program will enhance SUNY's academic mission while maintaining affordability and placing college campuses across New York at the center of the state's regionally-based economic revitalization strategy.

The bill includes the authority for Empire State Development to issue $80 million in capital funding under the NYSUNY 2020 Challenge Grant Program.

The bill authorizes all SUNY campuses to implement a rational tuition plan that gives them the ability to raise tuition up to five percent annually for five years. In addition, as a component of the NYSUNY 2020 Challenge Grant Program, it allows the four University Centers in Albany, Binghamton, Buffalo, and Stony Brook to implement a "Rational Plus Plan" which allows an additional three percent tuition increase, subject to the approval of the University Centers' application under NYSUNY 2020 by the Governor and SUNY Chancellor.

The increases will help build these institutions into regional economic development generators and world-class centers of research and innovation. Increases will also allow schools to add more faculty, educate additional students, increase class offerings and improve graduation rates. The plan also allows students and parents to better plan for college expenses, and places SUNY at the center of New York's economic revitalization.

In order to ensure affordability to students and families this legislation would help students and families with the cost increases. Students who are eligible for the maximum Tuition Assistance Program ("TAP") award will not be subject to a tuition increase under the five year rational tuition plan. Moreover, the SUNY Board of Trustees will be required to create a revolving loan fund to provide low interest loans to students.

Finally, as a condition of approval under the NYSUNY 2020 Challenge Grant Program the University Centers are required to include other financial aid plans to qualify for the "Rational Plus" program.

"The current tuition system does not serve our students, schools, or state," Governor Cuomo said.

"This bill brings rationality to the SUNY tuition system, by allowing students and parents to reasonably plan for college expenses, instead of being subject to dramatic tuition increases and uncertainty. By offering $140 million in new capital funding to our state's leading universities, we are building these schools into America's leading institutions of research and innovation, while also creating jobs for New Yorkers and improving our state's economic competitiveness."

SUNY Chancellor Nancy L. Zimpher said, "Governor Cuomo is fulfilling the promise he made to New Yorkers in his State of the State address by submitting legislation that positions SUNY to be a key driver of our state's economic recovery. Furthermore, rational tuition will allow SUNY to flourish while protecting access for New Yorkers and providing students with the resources they need to complete their degrees on time. Governor Cuomo is proving himself to be a staunch advocate and supporter of public higher education."

"This legislation is important news for economic development in New York State. SUNY institutions play a critical in their local economies. This initiative will strengthen the connections between cutting-edge SUNY research, local business development and job creation. In addition, establishing a rational tuition policy for SUNY will enhance the universities' roles as economic drivers in their local communities and throughout the state," stated Empire State Development President, CEO & Commissioner Kenneth Adams.

SUNY Student Assembly President Kaitlyn Beachner also praised the legislation by stating, Governor Cuomo's decision to introduce legislation that creates a rational tuition plan shows his dedication to respecting the voice of SUNY students. For the past three years the SUNY Student Assembly has been asking for Albany's support to bring an end to the politicization of SUNY tuition, which places an undue burden on students and their families around the state. We applaud the Governor's effort to end the harsh tuition spikes that have been detrimental to SUNY's accessibility. By having the SUNY Board of Trustee's establish a revolving loan fund at a low interest rate and ensuring the protection of those students who fully depend on the Tuition Assistance Program, the accessibility for all students remains intact despite potential tuition increases. I look forward to working with the Governor and Legislature towards the enactment of a final tuition plan that will benefit all students in the State University of New York. I am delighted that the students of SUNY have found a new partner in Governor Andrew Cuomo."

"On behalf of New York's 220,000 unionized construction workers, the NYS Building & Construction Trades Council is excited to learn about the Governor's NYSUNY 2020 program that has the potential to create thousands of jobs – great news for our industry which is experiencing unemployment rates between 20-60 percent across the state. Over the last 18 months, the Building Trades have worked hard with SUNY over to ensure that labor protections and good-paying jobs for New Yorkers are part of this effort, and are proud to be a part of it," proclaimed Empire State Development President, CEO & Commissioner Kenneth Adams.

Currently, the 20 year average annual SUNY tuition increase is 6.7 percent, well above that proposed in the rational tuition plan. Under the existing system, there are periods without tuition increases followed by sudden and dramatic spikes in tuition of upwards of 40 percent. Such spikes and uncertainty in tuition is detrimental to students, families, and the university system.

Provisions in the legislation include: Authorizing all SUNY campuses to implement a rational tuition plan by increasing tuition five percent annually for five years; authorizing University Centers to implement a rational plus tuition plan by including an additional three percent increase annually for five years conditioned on the approval of their NYSUNY 2020 applications by the Governor and SUNY Chancellor; requiring that any tuition increase under the five year rational tuition does not apply to students eligible for maximum TAP award; creating a State University Low Interest Revolving Loan Fund; requiring conflict of interest policies for implementation of NYSUNY Challenge Grant Program; and authorizing the Empire State Development Corporation to issue $80 million in bond proceeds to implement NY-SUNY Challenge Grant Program.

The bill is available here. The bill memo is available here.

The following statements were also provided in support of the governor's decision.

"UAlbany supports and applauds Governor Cuomo's efforts to build on the academic and research strengths of the four SUNY University Centers to stimulate greater economic growth in New York State. The Governor's NYSUNY 2020 challenge grant program is an important initiative closely coupled with the need for tuition flexibility, which will allow the University at Albany to grow its academic enterprise, create jobs, attract research funding, and spur economic growth in the Capital Region. UAlbany pledges that along with tuition flexibility it will fulfill its responsibility to maintain accessibility to students with financial need."

University at Albany President George M. Philip

"I commend Governor Cuomo for supporting a rational tuition plan. Predictability and planning is essential when providing a college education. The plan will support the SUNY goals of access, affordability, and completion. On behalf of the Alfred State College family, thank you Governor Cuomo, for recognizing the needs of SUNY's students; supporting a rational tuition plan allows SUNY to continue to provide high quality education at an affordable price."

Alfred State College President John Anderson

"We commend and thank Governor Cuomo for his commitment to the SUNY system. His visionary leadership in supporting a rational tuition and tuition plus program will give Binghamton University the tools and resources we need to provide the kind of quality educational experience that New Yorkers expect and deserve from us. We are also proud to be a partner in the NYSUNY2020 initiative. Binghamton University has laid out an ambitious community oriented, community driven agenda that will enable us to leverage our academic excellence, cutting-edge research and economic development initiatives to jump-start a new era of powerful and productive returns to the Southern Tier and New York state."

Binghamton University President C. Peter Magrath

"I commend Governor Cuomo for his visionary leadership in recognizing the State University of New York as a partner in the revitalization of this great state. A five-year rational tuition plan such as the governor supports will allow students and parents to better plan for the costs of attending college and will give The College at Brockport greater ability to provide a more complete educational experience."

College at Brockport President John R. Halstead

"We have a tremendous advocate for higher education in Governor Andrew Cuomo. I would like to thank him for his leadership on behalf of the State University of New York. A responsible, predictable and fair tuition policy is in the best interest of today's students, future students and all citizens of New York. And it is absolutely the right decision for Buffalo State and its people. A plan of rational annual tuition increases is the best means of ensuring that future generations have access to high-quality public higher education and that communities such as ours grow a population ready for the world of the 21st century."

Buffalo State College President Aaron Podolefsky

"We commend the governor for his vision and commitment to public higher education. With this legislation, we, at the University at Buffalo, will be able to ensure our students are provided the highest quality education so that they may achieve their academic and career aspirations. Quite importantly, this predictable tuition program provides students and families with the ability to financially plan for their education and, at the same time, protects access for students with financial need."

University at Buffalo President Satish K. Tripathi

"Governor Andrew Cuomo has provided insightful leadership on behalf of the SUNY System. His support of the rational tuition plan will help SUNY Canton continue to grow and develop. This plan will enable our students and their families to predict and budget for the future while maintaining accessibility and affordability."

SUNY Canton President Joseph L. Kennedy

"Among its many benefits, a rational tuition plan will permit families to plan ahead with certainty for college education. Governor Cuomo is to be commended for his support of SUNY's plan, which is so important to maintaining New York's place as the Empire State."

SUNY Cobleskill President Donald P. Zingale

"I salute and commend our Governor on his support for a Rational Tuition Policy. This encourages an effective partnership between New York families and our state universities and colleges, for it allows our students to have a predictable and fair understanding of what it will cost to receive a college education. Moreover, it will bolster access and permit students to complete their degrees in four years. I believe that this new policy will help thousands of New Yorkers achieve their dreams of attending the college of their choice."

SUNY Cortland President Erik J. Bitterbaum

"I applaud Governor Cuomo for his leadership in supporting a rational tuition policy for the State University of New York. A tuition policy that is affordable and predictable was strongly endorsed by our Student Senate this year. They understand how important planning for the cost of a college education is for our students and their families because 30 percent of Delhi students come from households with incomes less than $30,000. They also realize that any additional tuition revenues will be used to ensure students have access to the courses they need to graduate on time."

SUNY Delhi President Candace Vancko

"Having a rational tuition plan has long been a goal for the University. To sustain higher education, to ensure its quality and affordability, and to make certain it is available for underserved communities, there must be a predictable source of revenue. Rational tuition will make it much easier for students and families to set educational goals. We thank Governor Cuomo for his leadership in helping to meet these objectives."

SUNY Downstate Medical Center President John C. LaRosa

"Ever since he gave his first State of the State Address, Gov. Andrew M. Cuomo has recognized and articulated the positive impact and even greater potential the State University of New York has in advancing the economy and people of this great state. The governor has come out in support of a rational tuition plan, which would ensure accessibility, affordability and predictability for public higher education. Further, a five-year plan ensures SUNY of the resources necessary to accomplish its mission. Governor Cuomo is to be commended for immediately seeing the value of SUNY and for his leadership in advancing public higher education across the state."

SUNY Empire State College President Alan R. Davis

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