uss rejects tuition increases

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Office of the University Student Senate 555 West 57 th Street, 1420 New York, NY 10019 Tel: (646) 664-8844 Fax: (646) 664-8863 Web: www.usscuny.org To: University Student Senate’s Delegates and Alternates Date: 05/03/2015 Subject: Resolution to Preserve the Affordability and Accessibility of Higher Education within CUNY WHEREAS, the University Student Senate (USS) is the duly elected representative organization of all students at the City University of New York (CUNY), and WHEREAS, the mission of the USS is “to preserve the accessibility, affordability and excellence of higher education within the City of New York and to protect the rights of the student body and to inform them when their rights are threatened, to further the cause of public higher education and to promote the general welfare of its student constituents and the University;” and WHEREAS, in June 2011, the New York State Legislature passed a law, subsequently signed by Governor Andrew M. Cuomo, empowering the State University of New York (SUNY) and the CUNY Board of Trustees “to increase the resident undergraduate rate of tuition by no more than three hundred ($300) dollars per academic year” for five years ending in the 201516 academic year, and 1 WHEREAS, the law also includes a "maintenance of effort" provision requiring that the State support for the senior colleges not be less than the amount provided the previous fiscal year; WHEREAS, in November 2011, the CUNY Board of Trustees voted to increase tuition by $300 for undergraduates and proportionally for graduate, doctoral, and nonresident students, per fiscal year (FY) ending in the FY16 (20152016 academic year); and WHEREAS, the undergraduate rate of tuition at senior colleges during FY11, before the five year tuition increase plan, was $4,830, which increased to $5,130 in FY12; to $5,430 in FY13; to $5,730 in FY14; to $6,030 in FY15; and will increase to $6,330 in FY16; and 2 WHEREAS, the five year increase in the undergraduate rate of tuition totals to approximately a 30.4% increase from FY11 to FY16; and 3 WHEREAS, New York State’s Tuition Assistance Program (TAP) has failed to keep up with the rising cost of undergraduate tuition with a current maximum award of $5,135$1,195 less than the 20152016 undergraduate rate at CUNY senior colleges; and 1 N.Y. Educ. Law § 6206(7)(a). 2 CUNY, <http://www.cuny.edu/admissions/tuitionfees.html>. 3 Formula: [($6,330$4,830)/$4,830]*100 1

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The USS expressively rejects tuition increases and calls on the state to fund CUNY to appropriate levels that would cover all increasing fixed costs as part of the maintenance of effort. Unanimously passed by the USS Plenary.

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Page 1: USS Rejects Tuition Increases

Office of the University Student Senate 555 West 57th Street, 1420

New York, NY 10019 Tel: (646) 664-8844 Fax: (646) 664-8863

Web: www.usscuny.org

To: University Student Senate’s Delegates and Alternates Date: 05/03/2015 Subject: Resolution to Preserve the Affordability and Accessibility of Higher Education within CUNY

WHEREAS, the University Student Senate (USS) is the duly elected representative organization of all students at the City University of New York (CUNY), and

WHEREAS, the mission of the USS is “to preserve the accessibility, affordability and excellence of higher education within the City of New York and to protect the rights of the student body and to inform them when their rights are threatened, to further the cause of public higher education and to promote the general welfare of its student constituents and the University;” and

WHEREAS, in June 2011, the New York State Legislature passed a law, subsequently signed by Governor Andrew M. Cuomo, empowering the State University of New York (SUNY) and the CUNY Board of Trustees “to increase the resident undergraduate rate of tuition by no more than three hundred ($300) dollars per academic year” for five years ending in the 2015­16 academic year, and 1

WHEREAS, the law also includes a "maintenance of effort" provision requiring that the State support for the senior colleges not be less than the amount provided the previous fiscal year;

WHEREAS, in November 2011, the CUNY Board of Trustees voted to increase tuition by $300 for undergraduates and proportionally for graduate, doctoral, and non­resident students, per fiscal year (FY) ending in the FY16 (2015­2016 academic year); and

WHEREAS, the undergraduate rate of tuition at senior colleges during FY11, before the five year tuition increase plan, was $4,830, which increased to $5,130 in FY12; to $5,430 in FY13; to $5,730 in FY14; to $6,030 in FY15; and will increase to $6,330 in FY16; and 2

WHEREAS, the five year increase in the undergraduate rate of tuition totals to approximately a 30.4% increase from FY11 to FY16; and 3

WHEREAS, New York State’s Tuition Assistance Program (TAP) has failed to keep up with the rising cost of undergraduate tuition with a current maximum award of $5,135—$1,195 less than the 2015­2016 undergraduate rate at CUNY senior colleges; and

1 N.Y. Educ. Law § 6206(7)(a). 2 CUNY, <http://www.cuny.edu/admissions/tuition­fees.html>. 3 Formula: [($6,330­$4,830)/$4,830]*100

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WHEREAS, on November 28, 2011, the CUNY Board of Trustees also voted to increase tuition, by $670 per fiscal year for full­time law school resident students; $480 per fiscal year for full­time master's residents students; $430 per fiscal year for full­time doctoral resident students ending in the FY16 (2015­2016 academic year);

WHEREAS, New York State’s Tuition Assistance Program (TAP) for graduate students, with a maximum award of $550, was completely eliminated in 2009­2010 ; and 4

WHEREAS, the State has failed to cover the "increasing fixed costs, including those for health insurance and pensions, and contractually mandated annual incremental salary increases" as part of the "maintenance of effort" provision, resulting in a $51 million budget gap in funding for 5

mandatory costs, and 6

WHEREAS, CUNY forecasts similar gaps "in 2016 and beyond," which represents the 7

continual divestment of the state from public higher education, and

WHEREAS, these budget gaps will mostly likely be mitigated by students through additional tuition hikes; and

WHEREAS, the State has failed to pass the NY DREAM Act that would extend TAP to undocumented students; and

WHEREAS, the TAP program does not take into account the cost of living per county, nor other rising costs, like textbook prices, transportation fees, and supplies; and

WHEREAS, the total cost of attending an institution of higher learning is more than just tuition fees; and

WHEREAS, the cost of living in New York City has risen about 23% from 2009 to 2014; and 8

WHEREAS, between 2002 and 2012 “new textbook prices increased by a total of 82 percent” “at an average of 6 percent per year” nearly three times the rate of inflation; and 9

WHEREAS, the cost of a 30­day unlimited monthly MTA metrocard has risen from $89 in December 2010 to $116.50 in April 2015, an increase of approximately 26% in less than five years; and

4 New York State Higher Education Services Corporation, “Graduate Level TAP AY 1974­1975 thru 2009­2010,” Neal Warren, September 2013.. 5 CUNY. "Basic Financial Statements and Management's Discussion and Analysis." 14. Web. <http://www.cuny.edu/about/administration/offices/bf/2014FinancialStatements.pdf>. 6 CUNY. "2015­2016 State Enacted Budget Preliminary Analysis." Web. <http://www.cuny.edu/about/administration/offices/bf/whats­new/FY2016StateEnactedBudgetAnalysis.pdf>. 2. 7 CUNY. "Basic Financial Statements and Management's Discussion and Analysis." 14. 8 "Uptown Top Ranking." The Economist. The Economist Newspaper, 02 Mar. 2015. Web. <http://www.economist.com/blogs/graphicdetail/2015/03/daily­chart>. 9 U.S. Gov’t Accountability Office, GAO­13­368, “College Textbooks: Students Have Greater Access to Textbook Information.” 10. June 2013. Web. <http://www.gao.gov/assets/660/655066.pdf>.

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WHEREAS, according to CUNY’s 2014 Student Experience Survey, approximately 77% of students rely on the subway or bus as their primary mean of commuting; and 10

WHEREAS, for the upcoming 2015­2016 academic year, CUNY estimates that students living at home will spend approximately $9,592 in books, transportation, and living expenses, while students not living at home will spend approximately $20,295 on such expenses; and 11

WHEREAS, the 2014 Student Experience Survey also indicated that 54% of all CUNY students live in households with a household income less than $29,999, with 65% of community college students living in these households; and 12

WHEREAS, 75% of CUNY students are people of color, 42% are first generation college students, 38% were born outside the U.S. Mainland, 15% are raising children, and 53% are working for pay; tuition increases disproportionately affect groups who historically have not 13

had access to higher education;

WHEREAS, according to New York City Comptroller’s “Analysis of New York City Preliminary Fiscal Year 2016 Budget Presentation,” since December 2009 the job growth in High Wage Industries has been 22.5%, 18.3% job growth in Mid Wage Industries, and 59.2% job growth in Low Wage Industries; and 14

WHEREAS, according to a report conducted by the Office of The New York State Comptroller in 2012, “a person who earns an associate’s degree would pay more than $35,000 in additional State taxes over his or her lifetime compared to someone with only a high school diploma” and “a person earning a bachelor’s degree would pay more than $60,000 in additional State taxes;” 15

and

WHEREAS, CUNY’s doctoral student workers and adjuncts, continue to labor without a contract or adequate pay, demonstrating the State’s failure to protect the quality of education for all students; and

WHEREAS, the rising tuition and expenses, stagnant financial aid assistance, insufficient state funding, and the prevalence of low­wage jobs undermine the affordability and stymie the

10 The Office of Institutional Research And Assessment, The City University of New York. "2014 Student Experience Survey." 48. 2014. Web. <http://www.cuny.edu/about/administration/offices/ira/ir/surveys/student/SES_2014_Report_Final.pdf>. 11 CUNY, http://www.cuny.edu/admissions/tuition­fees.html 12 The Office of Institutional Research And Assessment, The City University of New York. "2014 Student Experience Survey." 8. 13 Professional Staff Congress/CUNY, “Keep the Promise of CUNY”, Spring 2015, <http://psc­cuny.org/sites/default/files/Lobbybook2015_FP.pdf> (citing 2014 CUNY Student Experience Survey; A Profile of Undergraduates at CUNY Senior and Community Colleges: Fall 2013, <http://www.cuny.edu/about/administration/offices/ira/ir/data­book/current/student/ug_student_profile_f13.pdf>). 14 Office of New York City Comptroller. “Analysis of New York City Preliminary Fiscal Year 2016 Budget Presentation.” Feb. 24, 2015. Web. http://comptroller.nyc.gov/wp­content/uploads/documents/FY_2015_Feb_Plan_Presentation.pdf. 15 Office of New York State Comptroller. “The New York State DREAM Act." Https://www.osc.state.ny.us/osdc/rpt1­2014.pdf. May 2013. Web.

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accessibility to higher education and the advancement of a highly­educated and skilled workforce; therefore be it

RESOLVED, that the University Student Senate of the City University of New York hereby expressly rejects any extension of the “Rational” Tuition Plan; and, be it further

RESOLVED, that the University Student Senate of the City University of New York calls for a freeze on tuition increases; and, be it further

RESOLVED, the University Student Senate of the City University of New York calls on the State Legislature to fund the increasing mandatory cost within CUNY as part of the maintenance of effort; and, be it

FINALLY RESOLVED, that the University Student Senate of the City University of New York shall forward copies of this Resolution, along with any amendments or added provisions, to Governor Andrew M. Cuomo, Lt. Governor Kathleen C. Hochul, the members of the New York State Legislatures, the members of the New York City Council, the CUNY Board of Trustees, CUNY Chancellor James B. Milliken, CUNY Vice Chancellors, University Faculty Senate, Professional Staff Congress, CUNY College Presidents, CUNY student governing bodies, and the Delegates and Alternates to the University Student Senate.

THIS SECTION OF THE DOCUMENT WAS INSERTED ELECTRONICALLY AFTER THE

VOTE ON THE RESOLUTION

Adopted by the University Student Senate of the City University of New York during a Plenary meeting held on May 3, 2015 by the following vote:

AYES: 25 NOES: 0 ABSTAIN: 0

Introduced By:

Joseph Awadjie Lucas Almonte USS Chairperson USS Vice Chair for Legislative Affairs

For more info contact: [email protected]

Date: May 3, 2015

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Supporting Documents:

Breakdown of CUNY Senior Colleges Operating Budget Funding Sources

Breakdown of CUNY Community Colleges Operating Budget Funding Sources

Source: Professional Staff Congress/CUNY, “Keep the Promise of CUNY”, Spring 2015,

http://psc­cuny.org/sites/default/files/Lobbybook2015_FP.pdf.

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SUPPORT A TUITION FREEZE IN THE FACE OF A NEW PLAN TO HIKE THE COST OF PUBLIC

COLLEGE, STUDENTS MUST ACT!

Question: Which of the following did not get a break from New York State during the last four years?

a. Owners of yachts worth over $230,0001

b. New Yorkers whose taxable income exceeds $1 million2

c. Film and movie producers3

d. Students attending public colleges

The answer is “d.” New York State public college students did not get a break. In fact, tuition costs for

attending State University or City University systems have jumped over the past four years.

Can Tuition Honestly Be Raised “Rationally?” NO!

What is the “Rational” Tuition Plan (aka annual tuition hikes)?: Part of the SUNY 2020 legislation,

signed into law in 2011, allowed SUNY and CUNY to raise tuition by $300 per year over the course of

five years. According to State University of New York (SUNY) Chancellor Nancy L. Zimpher, the law

enacted by Governor Cuomo would institute “fair, predictable and responsible” tuition increases, allowing

students and their families to plan over five years.4

Irrational Costs and Broken Promises: The state’s so-called “rational tuition” policy has caused tuition

at public colleges to skyrocket. Tuition at SUNY is expected to reach as much as $6,470 (a 42% increase)

and at CUNY, tuition is projected to hit $6,330 (a 58% increase) by the time the law expires on July 1,

2016. However, the ability of typical New York families to absorb these costs has been limited. A recent

survey found that from 1979 through 2011, the wealthiest 1% of New Yorkers saw an income growth of

241%, while the bottom 99% saw an income growth of only 8.5%.5 Moreover, wage stagnation was more

pronounced among the lowest income earners.6 Financial planning falls short for many when tuition hikes

outpace wage growth.

A major component of SUNY 2020 was a Maintenance of Effort (MOE) provision, which mandated the

state to provide a steady level of funding that would not depend on revenue generated from tuition. The

MOE should have allowed SUNY and CUNY to invest the funds generated by the tuition hikes toward

expanded academic and student support services. However, while state funding for SUNY and CUNY has

remained largely flat over the last several years, the cost to maintain SUNY and CUNY’s existing services

has increased by $194.3 million.7 The state made up the difference using tuition dollars, undermining its

promise to students and their families.8 Stagnant state support coupled with rising tuition has had an

impact: Prior to the 2008 recession, tuition covered about half of SUNY’s budget9 and less than 40% of

CUNY’s budget.10 Now, tuition covers more than 70% of SUNY’s budget11 and more than 50% of

CUNY’s budget.12 So-called “rational tuition” has merely shifted the burden of operating New York’s

public college from the state to college students and their families.

Rising Student Loan Debt: Decreasing state support and increasing tuition rates have resulted in rising

debt for college students. Student loan debt is currently $1.3 trillion and it is estimated to be $2 trillion by

2025.13 At New York’s four University Centers, Albany, Binghamton, Buffalo and Stony Brook, 56% of

graduates carry debt averaging over $22,000.14 Studies show that students burdened with student loan debt

are less likely to start a business or own a home.15 This can create a ripple effect; where current debt

hamstrings future wealth growth—the effect is even greater for low-income students and students of

color.16

NY Must Freeze Tuition, Invest in Public Colleges, and Modernize Aid

A college-educated workforce is in demand. A Georgetown University study found that, by 2018, nearly

two-thirds of New York jobs would require a post-secondary education.17 Yet, 2013 Census data shows

that less than half of New York adults hold an associate's or bachelor's degree.18 Higher education is an

Page 7: USS Rejects Tuition Increases

PROBLEM: Tuition increases outpacing income growth, paired with decreased state investment,

have eroded college affordability.

SOLUTION: Freeze tuition rates by increasing investments to SUNY and CUNY and modernizing

financial aid programs to meet the needs of the 21st century student!

opportunity to change an individual’s socio-economic status. It’s in the best interest of the state to invest

public higher education and not renew the Rational Tuition Plan.

Freeze Tuition: The burden of filling state college budget gaps (the result of stagnant state support)

should not land on students’ shoulders, particularly since New York’s financial outlook has brightened

significantly over the past few years. The Legislature should reject an extension of the rational tuition plan

so that tuition rates may be frozen at 2015-2016 academic year rates.

Invest: New York State should restore $310 million to cover inflationary cost increases for SUNY and

CUNY. The SUNY 2020 law promised stable funding for CUNY and SUNY, so tuition hikes could go

toward educational improvements. Without public funding for unavoidable mandatory costs, the promise

of SUNY 2020 is broken. A genuine Maintenance of Effort provision, that covers all mandatory cost

increases for CUNY and SUNY, must be established. New York should also invest more funding into

opportunity programs known to be successful like ASAP, SEEK, HEOP and College Discovery.

Modernize the Tuition Assistance Program (TAP): TAP is an important financial aid program.

Unfortunately, the 40-year-old program has not kept with the times; in order to meet the needs of the 21st

century student the state should raise the maximum award to the full tuition rate plus inflation; pass the

DREAM Act; eliminate barriers for part-time students, and more.19

For more information, contact: In New York City: Farouk Abdallah, [email protected], in Albany: Blair Horner, [email protected]

1 Nahmias, L., “Budget includes sales-tax carveout for yachts,” Capital New York, March 30, 2015,

http://www.capitalnewyork.com/article/albany/2015/03/8565085/budget-includes-sales-tax-carveout-yachts, accessed April 16, 2015. 2 Greenberg Traurig, LLP, “New York State Changes Personal Income Tax Rates,” December 21, 2011, http://www.gtlaw.com/News-

Events/Publications/Alerts/154808/New-York-State-Changes-Personal-Income-Tax-Rates, accessed April 13, 2015. 3 Davidsen, B., “New York State Exposed: Millions in tax credits going to movie production in NY,” WHEC TX Rochester, see:

http://www.whec.com/article/stories/s3743428.shtml, accessed April 13, 2015. 4 Chancellor Nancy Zimpher's Testimony at the Joint Legislative Hearing of the Senate Finance and Assembly Ways & Means Committees

February 10, 2011, http://www.suny.edu/govtrelations/state/testimony/2011-12-executive-budget-testimony/#d.en.2560, accessed April 16, 2015. 5 Sommeiller, E., and Price, M., “The Increasingly Unequal States of America, Income Inequality by State, 1917 to 2011,” Economic Policy Institute, February

19, 2014, http://www.epi.org/multimedia/unequal-states-interactive/#/New York, accessed April 16, 2015. 6 Leonard, D., “The Great Wage Slowdown,” The New York Times, October 7, 2014, http://www.nytimes.com/2014/10/07/upshot/the-great-wage-slowdown-of-the-21st-century.html?smid=tw-share&abt=0002&abg=0, accessed April 16, 2015. 7 Kowal, Frederick E. Ph.D., President, United University Professions, Testimony on the 2015-16 Executive Budget Presented To: Senator John A.

DeFrancisco, Chair, Senate Finance Committee, and Assemblyman Herman D. Farrell Jr., Chair, Assembly Ways and Means Committee, 2/10/2015, http://uupinfo.org/communications/docs/2015Joint%20BudgetTestimony.pdf, accessed April 17, 2015, and Bowen, Barbara, President, Professional Staff

Congress/CUNY, Testimony on the Executive Budget: The City University of New York, FY 2016, Joint Hearing of the NY State Senate Finance

Committee and the Assembly Ways and Means Committee, February 10, 2015, http://assembly.state.ny.us/write/upload/files/testimony/20150210_highered/20150210-HigherEd-Bowen.pdf, accessed April 17, 2015. 8 Andrew Pallotta, Executive Vice President, New York State United Teachers, Testimony to the Senate Finance Committee and Assembly Ways and Means Committee on the Proposed 2015-16 Executive Budget for Higher Education, February 10, 2015,

http://www.nysut.org/news/2015/february/testimony-higher-education#sunycuny, accessed April, 16, 2015. 9 Albany Times Union, editorial, “A Raid on SUNY Students,” March 20, 2015, http://blog.timesunion.com/opinion/a-raid-on-suny-students/32036/, accessed April, 16, 2015. 10 Professional Staff Congress/CUNY, “Keep the Promise of CUNY”, Spring 2015, http://psc-cuny.org/sites/default/files/Lobbybook2015_FP.pdf,

accessed April, 16, 2015. 11 Ibid, Times Union, note 8. 12 Ibid, Professional Staff Congress, note 9. 13 Dēmos. “Ending the Debt-For-Diploma System” August, 2013, http://www.demos.org/sites/default/files/publications/TheDebtForDiplomaSystem.pdf, accessed April, 16, 2015. 14 The Institute for College Access & Success, "College InSight," http://www.college-insight.org, accessed April 17, 2015. 15 Ambrose, Brent W. and Cordell, Larry and Ma, Shuwei, The Impact of Student Loan Debt on Small Business Formation (March 29, 2014). Available at SSRN: http://ssrn.com/abstract=2417676 or http://dx.doi.org/10.2139/ssrn.2417676, accessed April 17, 2015 16 Robert Hiltonsmith, "At What Cost? How Student Debt Reduces Lifetime Wealth," Dēmos (2013). http://www.demos.org/what-cost-how-student-debt-

reduces-lifetime-wealth, accessed April 17, 2015 17 The Georgetown University Center on Education and the Work¬force, “Help Wanted: Projections of Jobs and Education Requirements Through 2018:

New York” State Level Analysis, 2010, https://cew.georgetown.edu/wp-content/uploads/2014/12/State-LevelAnalysis-web.pdf, accessed April 17, 2015 18 U.S. Census Bureau, "Educational Attainment: 2009-2013 American Community Survey 5-Year Estimates." http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF, accessed April 17, 2015 19 For more information on TAP reforms, visit: http://www.nypirg.org/pubs/higher_ed/TAP_Testimony_Final.pdf, accessed April 17, 2015