A Budget Update from President Lois B. DeFleur - December 17

 

Binghamton University and SUNY are facing the most serious reductions that have been proposed in many decades. It is particularly troublesome that Governor Paterson proposes to divert 90 percent of the tuition increase to the general fund. This diversion, along with additional reductions in our support, will seriously impact the operation of the University.

It is also disappointing that this year's reductions to SUNY were the highest proportional cut for any state agency. These proposed reductions come at a time when we not only face current economic challenges, but also look to the future and the need to educate and retain young people with the skills needed for the growth and development of the state's workforce.

Binghamton University is an integral part of the Southern Tier economy and these reductions will have a significant impact throughout the area.

I urge you to write to New York's governor and legislators to request that no more cuts are made to the SUNY system and that the tuition increase is returned to campuses.

Lois B. DeFleur
President

 

Testimony before New York State Senate Democrat's Public Forum

Oswego, NY

December 19, 2008

Lois B. DeFleur, President, State University of New York at Binghamton

Presented by Terrence M. Kane, Director of State Relations, Binghamton University

 

On behalf of the State University of New York at Binghamton (Binghamton University) we would like to thank the Senate Democrats for holding these important public hearings. Unfortunately, due to a scheduling conflict, President Lois B. DeFleur is unable to present her testimony today, and has asked that I do so in her place. The following is President DeFleur's statement:

Binghamton University is pleased to have this opportunity to bring to your attention our concerns regarding the state budget proposals for 2009-2010. We recognize that New York State faces an economic crisis of historic proportions, and that higher education must do its share to help address these challenges. However, we are concerned that in the current year and next year's budget reductions, SUNY's cuts have been proportionately greater than other state agencies. We strongly believe that the continuing application of budget reductions to SUNY will significantly affect the University's ability to deliver the courses and services that our students and our communities need.

Binghamton University and other SUNY institutions play a critical role in the state's economic growth and development. For every dollar invested in SUNY, eight are returned to the state and its communities in the form of new jobs, new technologies, and an educated workforce.  Locally, Binghamton University accounts for 10 percent of the entire economic activity of the Greater Binghamton region, making it one of the chief drivers of economic development. Further reductions in SUNY's budget will limit the University's ability to help the state grow out of the current economic crisis and diminish the ability of regional firms and organizations to compete effectively in the future.

For example, as one of SUNY's doctoral, research institutions, we are concerned about the proposal to assess SUNY's Research Foundations 10 percent of their indirect cost recoveries from federal grants, as well as the proposal to reduce support for University-wide programs. These reductions will impede the University's research mission and impose constraints on our ability to partner with local and state firms. Similarly, the proposal to increase graduate student tuition will affect the University's ability to attract and retain talented researchers (both students and faculty) upon whose expertise our community depends. Additionally, because the University supports its most promising graduate students through tuition waivers, these increases represent an additional financial cost to the campus.

Already, during the course of the past year, SUNY has seen budget reductions in excess of $200 million. Binghamton and other SUNY institutions are reducing expenditures by limiting new purchases, reducing energy costs, and suspending the hiring of new faculty and staff.  Binghamton has, and will leave, faculty and staff positions vacant, except positions related to health and safety or where there is external funding. This will result in larger class sizes, increased teaching loads, and fewer opportunities to work with regional and state industries. In addition, these reductions are being implemented just as SUNY and Binghamton University are experiencing significantly increased demand for admissions and services. Binghamton's enrollment is currently 14,600 and we will be unable to increase enrollment to meet this demand because of the loss of funding. Further reductions of the scale proposed by Governor Paterson will greatly reduce access to higher education for New York's residents.

The SUNY Trustees have recently authorized an increase in tuition that will help protect the University's educational, research, and service objectives, but only if campuses can retain all of these additional funds. Governor Paterson's proposal to apply 90 percent of this year's tuition increase to the state's general fund constitutes an unfair tax on students and families.

Governor Paterson's proposal to provide additional student loan support will help students meet the immediate costs of higher education at a time when private lenders are reducing such loans. At the same time, the proposed reductions in the Tuition Assistance Program may limit access for some students. We believe that, over the long term, a more effective method for establishing tuition levels at state colleges and universities is necessary.  Therefore, we support SUNY's recent proposal for a "Rational Tuition Policy" of small but periodic increases linked to the Higher Education Price Index.

In June, 2008, the New York State Higher Education Commission released its final report. In it, the Commission emphasized the underfunding of SUNY relative to other state university systems, noting that SUNY's public peers have state resources that are, on average, 17 to 120 percent greater on a per-student basis. Further reductions will accentuate the competitive disadvantage of SUNY institutions and affect their ability to prepare the state's workforce. We believe it is crucial that SUNY receives adequate and appropriate funding so that it can continue to provide access to affordable, high-quality education.

SUNY universities and colleges are good stewards of their resources. Binghamton has worked hard to reduce costs and increase revenues from external sources. However, these efforts often are hindered by mandates that reduce campus flexibility, as well as regulations that limit opportunities for entrepreneurial activity and more productive uses of institutional land and other assets. Significantly, the Higher Education Commission noted that SUNY is among the most highly regulated higher education systems in the nation. It is imperative that Binghamton and other campuses be given the flexibility and authority they need to encourage campus innovation and creativity. Thus, we support Governor Paterson's proposal to reduce mandates on SUNY, since reducing regulations would speed capital construction projects and increase the pace of education and research on our campuses.

We believe that public higher education in New York, and at Binghamton in particular, does best when there is a strong partnership between the state, parents and students, as well as individual campuses. We would like to work with the New York State Legislature to ensure that Binghamton University is able to continue to provide quality education for New York's students as well as contribute to the state's economic future. Please consider these necessary steps to enhancing our colleges and universities as you begin your fiscal deliberations for the upcoming year. We appreciate your support of higher education and Binghamton University.

Lois B. DeFleur

President