College Crisis Initiative’s Post

Arizona cuts #education funding which impacts ASU. Firm words from President Crow as his administration makes tough choices to meet the gaps. "These budget cuts put the state of Arizona even further behind in ensuring that Arizona has the talent and workforce necessary to advance its economy.” - President Crow “For whatever reason, state leaders want the public universities to be tuition-driven, independently funded and to advance on their own.” - President Crow And the rest of the news release highlights: "The state provides less than 9% of ASU’s total funding. Arizona invests half of what is invested per capita on higher education in Texas and Florida, and one-quarter of what is invested in Wyoming. "In FY 2024, according to Forbes, Arizona was one of just nine states that reported declines in total public investment in higher education. And when adjusted for population, Forbes noted that Arizona had the second-lowest per capita funding — and less than half of the national per capita average." Digging deeper into "the why" shows that declining tax revenues are forcing cuts throughout the state budget, including critical water infrastructure projects. As Fox News reported in January 2024, "A tax cut approved by legislators in 2021 and signed into law by Hobbs’ Republican predecessor, Gov. Doug Ducey, replaced the state’s graduated income tax with a flat tax that took full effect last year. Arizona subsequently saw a decrease of over $830 million in revenues from income taxes, marking a nearly 30% decline from July through November. "Meanwhile, a school voucher program expansion that originally was estimated to cost $64 million for the current fiscal year could now top $900 million, according to budget analysts." Fiscal policy has real world impact for publicly funded institutions. #highered #talentdevelopment https://lnkd.in/eJg8Uqgj

With the rising cost of college, many families are in search of scholarships. If your child receives one, you may wonder how it affects your taxes. Good news: Scholarships are generally tax-free for students in elementary, middle and high schools, as well as those attending college, graduate school or an accredited vocational school. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition. However, certain conditions must be met. A scholarship is tax-free if it’s used to pay for tuition and fees required to attend the school, and fees, books, supplies and equipment required of students. Room and board, travel, research and clerical help don’t qualify. https://buff.ly/3Mhczot #taxes #filing #accountant #auditing #taxes2023 #businessconsulting #valuation #cashflow #retirement

🎓📚 Did you know that scholarships can be a game-changer for families trying to cover the rising cost of college? But what about the tax implications? 🤔 Here's some good news! Scholarships are generally tax-free for students at all levels of education, from elementary to college and even graduate school. 🙌 Whether the scholarship is paid directly to the student or used to reduce tuition, it won't be taxed as long as certain conditions are met. To qualify for tax-free status, the scholarship must be used for tuition and required fees. Additionally, expenses like books, supplies, and equipment necessary for education are also eligible. However, keep in mind that expenses such as room and board, travel, research, and clerical assistance do not qualify. So, if your child receives a scholarship, you can breathe a little easier knowing that it won't create a tax burden for your family. 🏅📝 Share this valuable information with anyone who might benefit from it! #Scholarships #TaxFreeEducation #InvestInTheirFuture https://hubs.ly/Q0269Q6b0

House Committee Advances Tax Credit Proposal for Private School Scholarships 🔗https://lnkd.in/ekvFH6hk 🔗https://lnkd.in/e2zWuxkr 🔗https://lnkd.in/eHrftB-N   Last Wednesday, the House Ways and Means Committee marked up H.R .9462, the Educational Choice for Children Act, sponsored by Adrian Smith (R-NE). The bill would allow individual tax credits for qualifying contributions of up to 10 percent of adjusted gross income, for the education of eligible students. “Eligible student” is defined as a member of a household with an income of up to 300 percent of the area median gross income. Contributions are made to scholarship-granting organizations, and qualifying expenses include tuition, books, and other educational expenses for K-12 students, including dual enrollment and “educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies.” The bill also prohibits federal, state, or local governmental control of scholarship-granting agencies. Support for the bill was divided by party lines. Smith argued that the bill would provide needed school choice, especially in rural areas. Republican colleagues argued that school choice has an approximately 84 percent efficacy rate and supports young people in America who are most in need. Democrats argued that the bill is inequitable and includes an unclear provision that could limit the government’s role to ensure civil rights protections for students. An amendment [at 3:24.00] proposed by Rep. Don Beyer (D-VA) that would prohibit scholarships from being granted to support private schools who do not accept students with individualized education plans failed on a party line vote. The bill advanced through the Committee with only Republican support and will now await floor action. COPAA has distinct policies on school choice and will weigh in prior to the floor vote.

💵 Natalie Schwartz reports: New Mexico Gov. Michelle Lujan Grisham signed a bill last week that establishes a $959 million fund to support free college #tuition for state residents.  The trust fund will be the largest dedicated to higher education by a state, the governor’s office said in a March 8 announcement. Just seven other states, including Tennessee, New Jersey and Alaska, have trust funds for higher education. New Mexico’s fund will support two programs: the Lottery #Scholarship, which provides free tuition for recent high school graduates, and the Opportunity Scholarship, which covers students who attend New Mexico public colleges later in life. Nearly $48 million will be distributed from the fund in fiscal 2025.  The new trust fund is just one of several actions that New Mexico lawmakers have taken in recent years to beef up the state’s free college programs.  The Lottery Scholarship has existed for nearly three decades, and it supports around 10,000 students each year, according to the governor’s office. Unlike many other free college programs, the Opportunity Scholarship is open to older adults and part-time students.  Lujan Grisham has credited the Opportunity Scholarship with boosting college enrollment across the state. At the same time, the amount the state spends on college financial aid has increased dramatically over the past few years, jumping from under $90 million in fiscal 2022 to around $210 million in fiscal 2024, according to a recent legislative analysis.  New Mexico’s general fund revenue has increased in recent years, and the state has taken steps to boost distributions to reserves, according to a recent government release. Its higher education trust will be funded by money from its tax stabilization reserve.  “By creating this fund, New Mexico is keeping our original promise of tuition-free college for residents and cementing our status as the nation’s leader for college equity and access,” Lujan Grisham said in signing the bill on March 5. #scholarships #FinancialAid #NewMexico #EconomicMobility #AdultLearning #EducationalEquity #CollegeAccess

SDCCD adopts $1.05-billion budget for 2024-25 fiscal year - The San Diego Community College District governing board has adopted a balanced operating budget of more than $1.05 billion for the 2024-25 fiscal year, a budget that includes a 2.5% increase from the previous year during a time of continued enrollment growth. Serving approximately 90,000 students annually at four colleges with campuses throughout the city, the SDCCD is the largest provider of higher education and workforce training in the region and has become a powerhouse in expanding career pathways and preparing students for a fast-evolving economy. A 2023 study found that for every $1 million in tax dollars spent educating SDCCD students, taxpayers receive an average of $1.4 million in return over the course of the students’ working lives. The SDCCD Board of Trustees approved the spending plan on a unanimous vote at its September 12 meeting. The budget includes nearly $643 million in General Fund spending and $402 million from other revenue. Funding sources are varied, and include local property taxes, enrollment fees, federal financial aid and other revenue streams. Nearly one-third of this year’s budget – $326.7 million – is coming from a state Student Centered Funding Formula that is based in part on how well students are faring. Besides a base allocation that largely reflects enrollment, the Student Centered Funding Formula includes factors such as the numbers of students receiving financial aid, along with a student success allocation based on outcomes such as the number of students earning associate degrees and certificates and the number of students who transfer to four-year colleges and universities. “The adopted SDCCD budget reflects our ongoing commitment to fiscal responsibility while prioritizing student success and educational excellence across our colleges,” said SDCCD Chancellor Gregory Smith, who credited extensive collaboration among the Board of Trustees, college presidents, district administrative councils, academic and classified senates, faculty, and student leadership at the college and district level. “Through their hard work, we will continue to provide accessible, high-quality education which uplifts individuals and communities equitably across our region.” Smith says enrollment is up 6% thus far for the fall semester, continuing a three-year trend across the district with more and more students taking advantage of additional support services and flexible class options. Read the full story at sdccd.edu/newscenter

TRUMP SAYS COLLEGE ENDOWMENTS ARE "TAX SCAM" Embraces the view that because there were demonstrations on campuses opposed to Israel's policies, and because "what they're teaching and the way they're teaching is ridiculous" (whatever that means) therefore colleges have failed. Hence ending the tax exemption for endowments as well as government grants should be considered. Note that college endowments above a certain size were taxed for the very first time (at a very low rate) during Trump's first term in office. Given the size and visibility of the big Ivy League endowments, and the loathing of colleges from MAGA, and the need to increase government revenue, broadening and increasing the tax on endowment investments seems likely to be given serious consideration should Trump win a second term. Hewitt failed to ask whether Trump has a similar concern with regard to churches advocating for Donald Trump while being exempt from taxation... The following is from an interview with Hugh Hewitt, a conservative radio host: Hewitt: "You've seen the campuses. Your alma mater and my alma mater have failed terribly. Penn and Harvard. Should we cut off all federal funding to every college that has an endowment of more than a billion dollars or 5 billion dollars? Because I don't know why we're giving these places money." Trump: "Maybe you should do it anyway. You wanna know the truth because what they're teaching and the way they're teaching is ridiculous, but I'd probably recommend doing something. I think we should do something with endowments anyway. It's ridiculous, and then we subsidize schools on top of the endowments. The whole thing is ridiculous when you look and see some of these things with 25 billion dollars and then they are coming to us for aid. Ok, the whole thing is ridiculous, and I'm going to look at the whole situation. It's one of the great, it's actually a tax scam in a very sophisticated way, and I think that whole thing should be looked at anyway." https://lnkd.in/gzZK3cJG

Gov. Ned Lamont declared that he'd make sure he would make UConn's Dan Hurley 'the high paid basketball coach in the nation". Meanwhile, "UConn has been confronted with austerity measures intermittingly for the last 15 years, beginning with the Great Recession. Salary freezes, rescissions, furloughs have targeted UConn employees and other state workers, stagnating wages and constricting resources. Graduate programs have been pared down and contingent (adjuncts, in-residence) faculty hired to teach courses that would otherwise be taught from full-time tenure-system faculty who are expected to research, publish, secure grants, and engage their respective disciplines in a manner commensurate with a research intensive or “Research-1” university, which is UConn’s categorization. Note that these real decreases in resources from the state, and proposed cuts, are not unfolding due to a financial downturn or recession. In fact, the state had so much money in recent years that it exceeded the legal amount permitted in the Rainy Day Fund. Budget surpluses since 2017 exceeded $10 billion. These funds could have been used to fill gaps that remain after years of parsimony and austerity. What is at stake? It is impossible for UConn to be a world-renowned university if it is forced to bear devastating budget reductions. Ninety-eight percent of the budget in UConn’s largest school or college, CLAS, is salary. It does not have the anticipated 15 percent to cut, unless it eliminates graduate programs, phases out graduate fellowships, ends research accounts, closes labs, and curtails hiring."

The full cost to attend the University of Pennsylvania for the 2024-25 academic year will rise 3.9% to $87,860, after a vote taken Thursday by the school’s trustees. The costs include tuition of $60,920, fees of $7,766, and $12,640 for a standard room and $6,534 for meals. The overall increase for undergraduate students is similar to last year’s hike when the board raised tuition and room and board 4% to $84,600. The percentage increases over the last two years return Penn to pre-pandemic-level hikes. Percentage increases were smaller during the pandemic. Penn noted that it also will increase its financial aid budget 4.5% to $311 million, noting that 46% of students receive need-based aid. The university enrolls more than 10,400 undergraduates. https://lnkd.in/egwmeKwg

In 2nd part of 2-part conversation, Ohio University professor emeritus and Independent Institute senior fellow Richard Vedder talks about whether tax-incentivization is a subsidy, Milton Friedman’s 2003 e-mail to him about negative externalities in higher education, whether there might also be negative externalities in philanthropy, and the taxation of endowments in both higher ed and philanthropy, along with a little about the Ohio Bobcats’ football team ... “The magnitudes of some of these endowments has gotten so large that it becomes a question of public policy because there are tax advantages that donors receive in order to give to universities,” according to Vedder. “[G]etting special public treatment by the tax” code, he says, “in a sense, it is a subsidy. And so the question is, Well, why should we subsidize Harvard University when we have poor people who deserve it more than the people that go to Harvard? I mean, this is an argument, an equity argument, that some people will use and it has some validity to it. “I have actually shown some reservations about endowment taxes. They have a lot of problems associated with” them, Vedder notes. “Picking on endowments is cherry-picking a group of schools” that “at the moment is just two or three dozen, and maybe that’s not the appropriate approach.” Vedder speculates that Milton Friedman “would be very concerned about higher ed and he would favor some sort of taxation of universities, whether an endowment tax or not. I’m not sure that would be the way he would go, but I think there’s a chance he would be in favor of a big endowment tax. “[O]ne of the strengths of American higher ed, compared with higher ed in most places in the world is American higher ed has this private philanthropic” support. “I think this is a strength of America. So I’d hate to see that die, but on the other hand, it is legitimate to raise questions about it.”