Kookocracy lies about university cuts

Fact and fiction about Arizona university funding, per Michael Crow (and I agree):

Based
on some of the responses I’ve received recently regarding the state
budget proposal, I wanted to forward a few key facts to counter the
lingering inaccuracies and misperceptions I continue to encounter. The
information below provides important clarification related to pending
budget concerns and the magnitude of the challenges ASU is facing.


Fiction: The cut to ASU in the proposed legislative budget
is a small fraction (between 4 and 12 percent) of the university’s
overall budget.

Fact: The actual percentages are 35 percent of the
2009 state General Fund budget that is remaining for the year and when
the proposed 2010 cuts are added, it totals 40 percent of the
university’s state General Fund appropriation in 2008 on a Full-time Equivalent (either a full-time student or its equivalent of two part-time students) basis.

The percentages quoted by some state legislators are based on a total budget that includes hundreds of millions of dollars in federal research funding as well as bookstore and meal plan purchases
and even football ticket sales. ASU’s research enterprise and its
ancillary operations from the bookstore to the football team are – and
must be – financially self-sufficient and in fact, these activities
subsidize a substantial portion of the instructional budget.

If ASU were to close its dormitories and bookstore and stop doing
federally funded research and stop playing football, the revenue
associated with those activities would also end. So, it is a fiction
that ASU has other revenue that could begin to replace the loss of
state revenue.

State revenue and the tuition paid by students account for 79
percent of ASU’s instructional budget. To make up the loss of state
funding, tuition for in-state students would need to be almost doubled
to $11,000 a year.

Fiction: The proposed legislative budget won’t really hurt ASU. The university has gotten a lot of new state money in recent years.

Fact: The proposed budget cut would take student
funding at ASU back about 20 years, from $8,111 per full-time student
(or equivalent) in 2008 to $4,902 for 2010, which is lower than the
$5,017 ASU received in 1989. To see the full chart of state funding
from 1986-2010, click here.  

    General Fund per FTE Student (not adjusted for inflation)

               1989         2006        2010

              $5,017     $6,334     $4,902

The
primary mechanism state of arizona uses to fund its universities is an
growth formula – if enrollment increases, your funding increases by a
proportional amount.

The State of Arizona has experienced substantial population growth
and more qualified students are choosing to attend ASU every year,
resulting in an enormous demand for and growth in the university's
enrollment – from 43,000 students in 1989 and 50,000 students in 2000
to 67,000 students today. Enrollment growth funding over the last 20
years has not kept pace with actual enrollment growth. So, most of the
“new” money ASU has received in recent years is “catch-up” money,
intended to bring Full-time Equivalent student funding back to previous
levels.

Furthermore, the state has no regular capital construction or
maintenance budget for its universities. Twice over the last six years
ASU has gotten a special appropriation to build badly needed new
buildings. These additions are in no way “excess funds” that the
university can cut without there being drastic consequences.

Fiction: The budget proposals on the table are merely options so no one should be overly concerned about them.

Fact: No other options have been put on the table by the Legislature. Historically in Arizona,
legislative budget options often become the actual budget. Even as a
starting point, these cuts are so extreme that the ending point could
still have dire consequences for ASU. So, there is cause for grave
concern.

Fiction: ASU is unwilling to make cuts.

Fact: ASU has already taken more than $37 million
in state funding cuts and prepared for further reductions by
eliminating a total of 500 staff positions and 200 faculty associate
positions. We have disestablished schools and merged academic departments while managing to preserve academic quality.

The university is prepared to take additional cuts but we must be
clear about what needs to be done to reach the funding reductions laid
out in the proposed legislative budget. These actions could include:

* Laying off thousands more employees.

* Having a massive furlough of all remaining employees for two weeks or longer.

* Increasing tuition and fees.

* Closing academic programs.

* Closing a campus or possibly two.

Fiction: These cuts are no more than short-term pruning or fat-cutting.

Fact: The intended or unintended consequences of
these cuts would be to move ASU away from being a research university –
which it became 50 years ago by vote of the people of Arizona – back to
being a state college without graduate programs or research.

2 Comments

  1. Buford

    Maybe they could start by eliminating the School of Business and stop all coursework towards MBA’s?
    By only offering Basic Accounting, they could lead the way out of this financial mess.
    (Actually, I don’t know if ASU has those programs, but I couldn’t resist referring to one of Jon’s regular memes)

  2. Joanna

    Wow. This is simply stunning. Can I assume that this information was never printed in our so-called AZ Republic newspaper?

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