Higher education funding in N.J. is way down, while tuition is way up, report finds
TRENTON -- New Jersey's "lackluster" financial support of its colleges and universities has led to increased tuition, ballooning student debt and erosion in the quality of higher education, according to a new report.
The state's higher education funding has dropped by more 22 percent since 2008 when adjusted for inflation, a decrease of more than $2,150 per student, according to an analysis by New Jersey Policy Perspective, a Trenton-based public policy research group.
Meanwhile, average four-year tuition costs in New Jersey grew by 23.7 percent between 2004 and 2013 while the average family income fell by 7.3 percent with inflation factored into both calculations.
As a result, average student debt for New Jersey students rose by 40.5 percent when adjusted for inflation, the report said.
New Jersey Policy Perspective President Gordon MacInnes urged the state to change course for the sake of New Jersey's working families and the state's economic future.
"For most, the American Dream includes putting your kids through college," MacInnes said. "But New Jersey's lack of investment in higher education makes achieving the dream far more difficult.
Gov. Chris Christie's office did not immediately respond to a request for comment.
New Jersey has long been considered a high-tuition, high-aid state, meaning its colleges charge above-average tuitions but the state offers generous financial aid packages to low- and middle-income students.
Christie was praised by college officials during his first term when he supported a $750 million bond issue that authorized the state to borrow money for new buildings on private and public campuses. It was New Jersey's largest bond issue ever.
But higher education and college officials have complained for years that New Jersey's funding system is outdated and illogical. Instead of awarding money based on how many students a college enrolls, state funding is divided up among New Jersey's colleges based largely on how much schools have received in the past.
For 2015-16, Christie proposes spending $1.5 billion for higher education services, down just 1 percent from 2014-15.
However, he also proposes cutting nearly $38 million in direct aid to schools, about a 5 percent drop. That money is being reallocated to instead cover increases in fringe benefits paid for by the state.
Inadequate state support has caused schools to cut staff and faculty positions and offer fewer courses in recent years, the New Jersey Policy Perspective report said. At the same time, rising tuition may be scaring low-income and middle-class students away from college, said Brandon McKoy
The report said keeping higher education affordable is vital to the state's future.
"A thriving economy of the future requires college-educated workers," said Michael Mitchell, another policy analyst who authored of the report. "For the sake of its future prosperity, New Jersey should start reinvesting in its colleges and universities now."
