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Monday, June 7, 2010

Prospect of more budget cuts worries Texas higher education leaders

Prospect of more budget cuts worries Texas higher education leaders

Prospect of more budget cuts worries Texas higher education leaders

Lawmakers won't decide until next year whether to spare state financial aid program from reductions.

William Powers Jr.
Laura Skelding/AMERICAN-STATESMAN
William Powers Jr.
Judith Zaffirini
Harry Cabluck/ASSOCIATED PRESS
Judith Zaffirini
Raymund Paredes
Kye R. Lee/THE DALLAS MORNING NEWS
Raymund Paredes


By Ralph K.M. Haurwitz
AMERICAN-STATESMAN STAFF

Updated: 5:24 a.m. Monday, June 7, 2010
Published: 9:30 p.m. Sunday, June 6, 2010

Public colleges and universities in Texas are absorbing a 5 percent cut in state funding by laying off employees, deferring repairs, scaling back travel and finding other savings. But the prospect of an additional reduction of 10 percent in the next two-year budget has some higher education leaders questioning the state's commitment to boosting enrollment.
"It couldn't come at a worse time, because we're experiencing record double-digit enrollment growth," said Rey García, president of the Texas Association of Community Colleges. "If the state's not going to pay for the cost of enrollment growth, we may not be able to grow, and we may have to abandon the state's goal of more access to higher education."
Last month , the Legislative Budget Board and Gov. Rick Perry ordered agencies and universities to propose cuts totaling 10 percent of their state funding for the two-year budget cycle that will begin in September 2011.
Higher education constitutes only about 15 percent of the state's current $87 billion general revenue fund — the portion of the budget over which the Legislature has control — but it is especially vulnerable in tight fiscal times. The reason: Several other high-dollar slices of the budget pie, including Medicaid, children's health insurance, public education and pension contributions, are exempt from cuts.
Some higher education leaders and lawmakers are especially concerned about the potential for reductions in the state's $1.1 billion student financial aid program. Although the budget board spared that program from the 5 percent cut, there is no assurance that it will get a pass again.
"We're trying to get that answered right now," said Andy Kesling, a spokesman for the Texas Higher Education Coordinating Board. "I wouldn't assume one way or the other."
Perry spokesman Allison Castle, when asked whether the governor thinks higher education should be cut more than the 5 percent and whether financial aid should be spared, said: "The governor has always believed in making higher education more accessible, affordable and accountable. Requesting information about the impact of additional reductions is part of keeping state government accountable to taxpayers and ensuring we continue to live within our means. This is the first step in a yearlong process, and agencies have been asked to submit their proposals for leadership and lawmakers to consider."
Higher Education Commissioner Raymund Paredes, the coordinating board's top administrator, said in a letter to Perry and