State Budget and Rutgers Tuition

July 14, 2005

Members of the Rutgers Community:

Now that the state's difficult budget deliberations have been completed, I am pleased to share with you details on higher education funding provided by the State Legislature and Acting Governor Richard Codey in New Jersey's Fiscal 2006 appropriations act. As always, this funding will have a significant impact on the operations of our university in the coming year.

Partial state support for negotiated salary increases is a welcome supplement to Rutgers' funding base for Fiscal 2006, as is the continued full funding of employee fringe benefits. Of special note are the additional salary funds that were included in the appropriations bill late in the budget process, raising total state salary support to approximately 50% of negotiated increases at the senior public colleges and universities.

In addition to money for personnel costs, the Fiscal 2006 budget offers increased state funding for student assistance programs. Economically disadvantaged students will benefit from new appropriations provided for both the Tuition Aid Grant and Educational Opportunity Fund programs. Likewise, merit aid for New Jersey's top high school graduates will rise through increased funding of the state's successful Outstanding Scholars Recruitment Program.

The Fiscal 2006 state budget also includes some special funding for Rutgers-related projects. Money for stem cell research at Rutgers and UMDNJ, for example, is provided again in this year's budget. In addition, new capital funds for the Rutgers Business School in Newark, and new operating funds for the Rutgers-Camden Center for the Arts and the Gubernatorial Papers Project, can be found among the 2006 appropriations.

Tuition rates at Rutgers are impacted by appropriations in the annual state budget, as well as mandatory cost increases for personnel salaries, fuel and utilities, and other items. In general, tuition covers roughly half of the costs of education for a New Jersey undergraduate at Rutgers. To pay for mandatory costs not supported by state funds, the Board of Governors approved increases in tuition and fees at its meeting earlier today. As a result of the board's action, a typical in-state student residing on campus will see a 6.8% increase in his or her total term bill (tuition, fees, room and board) next fall. To help offset the impact of such increases, and to maintain the affordability of a Rutgers education, the board also endorsed a $1.55 million increase in university-funded financial aid offerings for the coming year.

While it did not include all of our requested appropriations for the coming year and therefore will require difficult budget decisions, the Fiscal 2006 state budget continues a recent upward funding trend for Rutgers and the rest of New Jersey's higher education system. I am grateful to all those who advocated for our university during the budget process, including the members of the Friends of Rutgers network. As the Garden State's economy continues to grow, I look forward to working with the entire Rutgers community in seeking additional public support for the wonderful teaching, research, and service programs that our great university has to offer.

Richard L. McCormick
President
Rutgers, The State University of New Jersey