FINANCE

New York's two largest public university systems reported strong enrollment growth and sought full funding for faculty wage agreements during a joint legislative hearing on Governor Hochul's 2025-2026 higher education budget proposal on Tuesday. SUNY Chancellor John King announced a 3.4 percent enrollment increase—the first back-to-back systemwide gains in 15 years—and highlighted that 52 percent of in-state undergraduates attend tuition-free. He praised the Governor's proposed $114 million increase for state-operated campuses and $550 million for critical maintenance, along with a $200 million innovation fund for laboratory facilities. However, King expressed concern about potential federal research cuts, warning that proposed NIH reductions alone could cost SUNY $79-80 million annually from the $700 million in federal research funding the system receives yearly. CUNY Chancellor Félix Matos Rodríguez reported adding nearly 12,000 students over two years and reducing the university's structural deficit from $234 million to a projected $62 million. He requested an additional $34 million beyond the Executive Budget's $96 million increase for senior colleges to fully cover faculty wage increases negotiated in December. Matos Rodríguez highlighted CUNY's record $672 million in external research funding and praised the Governor's proposed free community college program, which would provide tuition, fees, books and supplies for adults age 25-55 pursuing associate degrees in high-demand fields. Sen. Toby Stavisky, chair of the Senate Higher Education Committee, pressed King on SUNY Downstate's financial sustainability, noting the hospital has struggled for two decades. King said a community advisory board would recommend a path forward by April 1st, with the state proposing another year of deficit funding and $450 million in capital investment. Assemblywoman Alicia Hyndman, chair of the Assembly Higher Education Committee, questioned whether community colleges had capacity for the Governor's Opportunity Promise Scholarship program. Both chancellors said they were ready, though King noted community colleges would need additional operating dollars for high-cost workforce programs like nursing. The hearing was the 10th in a series of 14 joint fiscal committee hearings on the Governor's proposed budget. Both systems emphasized affordability and access while seeking resources to maintain momentum on enrollment growth and research expansion. NEW YORK — State University and City University of New York chancellors faced pointed questioning from state legislators on Tuesday over funding gaps, campus safety, and federal research threats as they defended the 2025-2026 executive budget proposal for higher education. SUNY Chancellor King and CUNY Chancellor Matos Rodríguez testified before a joint legislative hearing that the Governor's budget includes $200 million for Upstate Medical Center's $450 million annex project, but Sen. Griffo pressed for additional resources to achieve parity with Downstate Medical Center's nearly $1 billion in proposed investments. Both chancellors reported progress on implementing Judge Lippman's 13 recommendations for campus safety following antisemitism concerns. CUNY launched a Center for Inclusive and Equal Opportunity to centralize discrimination complaints and investigations, while SUNY said it has embraced all recommendations. However, Assemblyman Epstein and others emphasized that stronger action is needed, with constituents reporting Jewish students and faculty still do not feel safe on campuses. The hearing revealed significant funding gaps in the Governor's proposal. SUNY and CUNY together need approximately $5 million to include technical colleges and associate degree programs in the proposed free tuition initiative. Community colleges face operating deficits on expensive programs like nursing, with Assemblywoman Clark warning that tuition alone will not cover costs even if increased two- or threefold. Sen. Liu raised concerns about a no-bid contract SUNY entered with a major academic publisher, arguing it encourages monopolistic practices and noting the publisher has faced allegations of acceding to foreign government censorship. Chancellor King defended the arrangement as providing pricing benefits to campuses. Federal research funding emerged as a critical threat. Chancellor King estimated that proposed changes to NIH indirect cost reimbursements would cost SUNY $79 million. A temporary restraining order has halted implementation, but Sen. May questioned whether the Chancellor is engaging Republican lawmakers whose districts benefit from research dollars to push back against the federal action. On fiscal sustainability, CUNY reported reducing schools of high fiscal concern from nine to five, while SUNY said Potsdam cut its deficit by 62 percent and has no plans for campus closures. Both systems reported enrollment recovery, with CUNY noting a quarter-million New Yorkers have some college but no degree. CUNY Chancellor Matos Rodríguez announced a new transfer initiative allowing all community college courses to transfer immediately to senior colleges, not just general education credits. He also noted CUNY needs an additional $34 million beyond the Governor's proposal to cover PSC CUNY contract increases. The hearing underscored tensions between legislative priorities—affordability, safety, and workforce development—and the fiscal constraints facing both systems. Legislators signaled they will push for additional operating aid for community colleges, more support for students with disabilities, and stronger action on campus safety in final budget negotiations. New York's higher education leaders faced pointed questions about funding shortfalls and implementation capacity during a joint legislative budget hearing Tuesday, with CUNY Chancellor Matos Rodríguez warning that without an additional $34 million, efforts to reduce the system's structural deficit would collapse like "the rock of Sisyphus." The hearing on Governor Hochul's 2025-2026 higher education budget revealed significant gaps between proposed funding and stated needs. CUNY needs the $34 million to fully cover a Professional Staff Congress contract ratified in December, while the Executive Budget provides only $96 million in general operating support. Matos Rodríguez noted that CUNY has reduced its structural deficit from $260 million to $64 million and has frozen tuition increases for five years at four-year schools and nine years at community colleges, arguing that state funding must fill the gap. SUNY Chancellor King highlighted nearly $1 billion in investment for Downstate Medical Center but cautioned that federal Medicaid cuts could threaten sustainability. He also noted that SUNY received only $200 million of the $450 million needed for Upstate Medical Center's expansion project. Senators raised concerns about endowment spending and workforce retention. Sen. Murray questioned why Stony Brook University, with a $600 million endowment, distributed only $8.46 million for impact purposes in 2021 while requesting increased state funding. SUNY Chancellor King defended endowment growth as essential for research competitiveness, noting the Simons Foundation's $500 million commitment to Stony Brook for quantum research. Higher Education Services Corporation President Guillermo Linares reported progress on financial aid expansion, noting that New York ranked fourth nationally for FAFSA submission rates among high school seniors as of February 7—the state's highest ranking in 15 years. The Executive Budget includes $1.03 billion for HESC programs, with $47 million supporting free community college for adults ages 25-55 in high-demand fields. Community college funding emerged as a bipartisan concern. Multiple legislators noted that community colleges are funded at 24 percent of costs by the state, below the statutory one-third target, placing pressure on tuition. Assemblyman Stirpe urged continued advocacy for an additional $30 million in operational support, particularly given the new adult learner population entering through the Opportunity Promise program. Sen. Jackson pressed both chancellors on implementation, questioning whether CUNY could actually fulfill its PSC contract and whether the government would meet its commitment to Downstate Medical Center. The hearing underscored tensions between ambitious policy goals and constrained fiscal resources, with legislators signaling they expect chancellors to advocate aggressively for additional funding in budget negotiations. NEW YORK STATE SENATE FINANCE COMMITTEE — The state's higher education agencies faced pointed questions about federal policy uncertainty and proposed budget cuts during a joint legislative hearing on the 2025-2026 Executive Budget on Tuesday. HESC President Dr. José Linares testified that the agency has shifted from a processing operation to a student-focused outreach organization, reaching 52,000 students through text message alerts and maintaining a redesigned website. He highlighted the success of the Tuition Assistance Program (TAP) expansion, which now benefits 93,000 students, including 48,000 newly eligible students due to recent threshold increases. However, Linares warned of significant challenges ahead. He noted that in 2023 alone, New York lost $225 million in federal aid because students failed to complete the FAFSA form. When asked about potential federal changes—including possible elimination of the Department of Education—Linares said HESC is prepared to adapt but emphasized the critical importance of federal funding to the state's higher education mission. Senate Finance Committee Chair Lois Krueger raised concerns about the loss of state-level data tracking on student loan defaults and graduate debt levels following HESC's transition away from being a guaranty agency. "We used to be able to get that kind of data," Krueger said, noting that such information is now tracked only at the federal level—which itself faces uncertainty. State Education Commissioner Dr. Betty Rosa requested $16.9 million in additional funding for Opportunity Programs, which serve economically disadvantaged students, and $2 million for enhanced support for students with disabilities in postsecondary education. She also opposed the Executive Budget's proposal to transfer health profession licensing oversight from the Education Department to the Department of Health, urging legislators to "reject this proposal and stand with us." Several senators opposed proposed cuts to workforce development programs. Sen. Katrina Webb questioned the rationale for decreasing funding to the nursing faculty scholarship program (which supports 90 students) and the New York Young Farmers Loan Forgiveness Program (facing a $50,000 cut), arguing that state investments should increase given federal reductions in these areas. The Excelsior Scholarship program, which serves 27,000 students at a cost of $121 million, also drew scrutiny. Assemblywoman Cliffton Griffin noted she had never met a constituent in her district participating in the program and requested district-level enrollment data. Linares also announced plans to restore a first-level call center in partnership with the Office of Children and Family Services, which would double HESC's annual contact capacity from 130,000 to 260,000 contacts. The agency currently faces scheduling delays, with appointment availability extending to March 6 as of February 20. The hearing underscored growing concerns about federal policy volatility and its impact on state higher education funding and oversight. NEW YORK STATE EDUCATION DEPARTMENT COMMISSIONER ROSA DEFENDED HER AGENCY'S OPERATIONS AND OPPOSED GOVERNOR'S BUDGET PROPOSALS AT A JOINT LEGISLATIVE HEARING ON HIGHER EDUCATION TUESDAY, REJECTING A CONTROVERSIAL PLAN TO TRANSFER THE OFFICE OF PROFESSIONS TO THE DEPARTMENT OF HEALTH AND WARNING THAT PROPOSED CUTS TO OPPORTUNITY PROGRAMS WOULD HARM 45,000 STUDENTS. Rosa testified before the Senate Finance Committee and Assembly Education Committee that the State Education Department has successfully managed professional licensing for 134 years and has recently improved operations significantly. Deputy Commissioner Hamilton noted that SED licensed 97,000 people last year—nearly double the 50,000 licensed in 2019—while processing applications within two weeks of credential submission, thanks to legislative investments in staffing. "We really, truly believe that this suggestion, recommendation, decision is not one that's in the best interests of the public," Rosa said of the proposed transfer to the Department of Health. The hearing focused heavily on funding for students with disabilities, a key concern for multiple legislators. Rosa said the executive budget proposes cutting $2 million from current funding of $4 million, while SED originally requested $15 million. Deputy Commissioner Meyers-Ruff reported that approximately 100,000 students with disabilities have self-identified in New York's higher education system, a number growing 15-20 percent annually, yet current funding amounts to only $40-60 per student. "All means all—all of our students to succeed," Rosa emphasized, arguing that adequate resources and support are essential for inclusive higher education. Several legislators expressed concern about the proposed cuts to opportunity programs including CSTEP, HEOP, Liberty Partnerships, and STEP, which collectively serve 45,000 students. Assemblywoman Hyndman praised the recent unification of the Office of Special Education with ACCES-VR, calling it a "brilliant move," and questioned whether the state is adequately supporting transitions from high school to adult services for students with disabilities. Sen. Stavisky asked detailed questions about the rationale for the professions transfer, while Sen. Webb raised the issue of mental health service continuity for college students, questioning whether New York should join the interstate Psych Pact to allow students to continue therapy across state lines. Deputy Commissioner Hamilton expressed concerns that joining compacts would cede state authority over licensing standards. Assemblywoman Clark raised concerns about Bundy Aid cuts affecting institutions with restricted endowments, such as the University of Rochester, while Assemblywoman Chandler-Waterman highlighted procurement delays affecting community-based organizations, noting some nonprofits have waited since 2014 for allocated funds. Rosa also requested approximately $20 million for repairs to the historic SED building, which CFO Christina Coughlin said has suffered from years of underinvestment, with water intrusion through skylights and damage to the exterior facade. NEW YORK STATE SENATE FINANCE COMMITTEE — Higher education advocates and union leaders testified before a joint legislative committee on Feb. 25 that the Governor's 2025-2026 budget, while a positive step, falls short of addressing critical funding gaps across CUNY, SUNY, and community colleges. The most contentious issue centered on SUNY Downstate Health and Sciences University, where Dr. Frederick Kowal, president of United University Professions, warned that an April 1st deadline for a restructuring plan is "extremely challenging" and called for an extension to June 1st. He testified that the institution needs an additional $250 million in capital funding beyond the Executive Budget's $750 million allocation to maintain current services and preserve specialty programs including prenatal care and kidney transplant centers. Kowal noted the Community Advisory Board took eight months to assemble and has held only one public hearing, with community members demanding more transparency. On community colleges, testifiers highlighted a structural funding crisis. Andrew Sako of the Faculty Federation of Erie Community College noted that state contributions have declined from 31 percent to 25 percent over the past decade, despite a statutory requirement of 40 percent. Community college trustees warned that without an additional $100 million in operational funding, the Governor's Opportunity Promise Scholarship—which aims to provide free tuition for 35,000 additional New Yorkers annually—could force colleges to cut enrollment or run deficits. George Cushman, chair of the New York Community College Trustees, testified that high-cost programs like nursing create $7,500 to $10,000 annual deficits per student, with nursing faculty salaries lagging hospital wages by 32 percent. CUNY representatives expressed alignment with university leadership on budget priorities. Dr. James Davis, president of the Professional Staff Congress, testified that CUNY is seeking $198 million above the Executive Budget, including $34 million to fully cover a recently ratified collective bargaining agreement. He urged elimination of age restrictions on the Opportunity Promise program, which currently limits eligibility to ages 25-55. Assemblyman Eachus, a former 40-year teacher, raised concerns about the feasibility of the Governor's proposed mental health clinics in every school building, citing space and staffing constraints. He also questioned why new workforce training facilities are being created when community colleges already possess infrastructure and capacity. Senator Stavisky pressed Commissioner Rosa on the New York State Museum's deterioration despite investment, noting a $7 million deficit and a fee structure unchanged since 2003 that has lost 40 percent of its purchasing power to inflation. The hearing underscored tensions between labor unions and SUNY leadership over funding priorities. Dr. Kowal criticized the chancellor and Board of Trustees for inequitable allocation of prior legislative increases and called for direct legislative earmarking of $102 million to 17 campuses with structural deficits. He also opposed Executive Budget cuts to Educational Opportunity Programs, which he said attract and retain students at higher rates than the general population. NEW YORK — Higher education leaders and student advocates warned lawmakers on Tuesday that community colleges and SUNY campuses face a fiscal crisis without significant additional state funding, even as enrollment grows and new free tuition programs launch without adequate resources. At a joint Senate-Assembly hearing on the 2025-2026 higher education budget, community college administrators testified that the state's new free tuition Opportunity Promise Program is underfunded and was imposed without their input. The program received only $28 million in the Executive Budget—with just $3 million to be split among 30 community colleges—despite colleges already operating at deficits in high-demand nursing and trade programs. "I got a call the morning of the announcement from the Governor that this is going to be announced," said George Cushman, a community college administrator, describing the lack of consultation. "You can do the math on that." Community college leaders requested $429 million plus an additional $95 million to reach the state's 33 percent funding threshold, arguing the current funding model based on full-time equivalent enrollment is "antiquated" and fails to account for part-time and working students. SUNY union leaders highlighted regional disparities, with Dr. Kowal advocating for the full $450 million proposed for Upstate Medical Center—the Executive Budget included only $200 million. He described emergency departments where patients receive numbered corridor spots as their "room" due to overcrowding. Student witnesses presented a stark picture of barriers to success. Gabrielle Lerner, representing non-traditional and online students, noted that while one-third of SUNY's 468,000 students are non-traditional, only 795 student parents benefit from on-campus childcare across 46 campuses—leaving approximately 92,805 student parents without access. Daniel Reden, representing CUNY's 390,000 students, highlighted transportation costs, deteriorating campus infrastructure, food insecurity, and housing instability as major obstacles to graduation. Sen. Toby Krueger (D-Manhattan) delivered a sobering reality check, warning that federal budget cuts—potentially $800 billion from Medicaid alone—mean New York will have less money for higher education, not more. "This isn't the year you're going to have good news," she said, urging witnesses to think realistically about difficult circumstances ahead. Sen. John Griffo (R-Utica) pressed Dr. Kowal on funding disparities between downstate and upstate institutions, characterizing investment in Upstate University as "frail" and expressing concern about foreseeable problems without adequate funding. Dr. James Davis, representing CUNY faculty, noted that the recent contract settlement included $192 million for retro pay but the additional $34 million proposed represents only a 1-1/3 percent raise for all members. She emphasized CUNY's diverse student body—nearly 300,000 students, one-third born abroad, 75-80 percent students of color—and warned against using AI to replace faculty work. The hearing underscored a fundamental tension: enrollment is growing, new programs are launching, but base funding remains inadequate, forcing institutions to choose between expanding access and maintaining quality. NEW YORK STATE SENATE FINANCE COMMITTEE — Student leaders from CUNY and SUNY testified before a joint legislative committee on the 2025-2026 higher education budget on Tuesday, calling for increased state investment in basic needs services, mental health counseling, and transportation assistance. The hearing revealed stark disparities in student support: Daniel Reden, a CUNY student, noted that York College has only 9 counselors for 11,000 students, while annual MetroCard costs exceed $9,000 per student. Gabrielle Lerner described her campus's virtual food pantry as providing only $76 per person once per semester—"not really sustainable," she said. Gio Harvey, a SUNY student, identified campus infrastructure improvements and expanded mental health services as top priorities. The testimony underscored broader concerns about student food insecurity, with Elisabeth Espinosa of Catholic Charities noting that current food pantries provide only three days' worth of food and requesting $75 million in full funding for state nutrition programs. On the higher education sector side, representatives from independent colleges and universities urged the Legislature to reject proposed cuts to pipeline programs like HEOP and STEP, and to restore Bundy Aid for institutions with endowments exceeding $750 million. Lola Brabham of the Commission on Independent Colleges and Universities requested a 20 percent funding increase for these programs. David Adams of Kaplan Education advocated for a universal workforce development program providing test preparation for professional licensure exams, estimating potential savings of $14 million for CUNY students alone. Chris Lacosse of the University Police Officers PBA called for centralization of SUNY's 29 separate campus police departments, citing high turnover rates—SUNY Albany has cycled through 50 officers in seven years—and the lack of standardized policies. Ruth Genn of Literacy Academy Collective requested $500,000 to implement the New York State Path Forward, a plan to integrate science-of-reading instruction into teacher preparation programs, noting that only 31 percent of New York students currently meet reading proficiency standards. Assemblywoman Hyndman pressed testifiers on implementation details and costs, while Sen. Stavisky expressed support for campus police centralization and questioned whether wealthy institutions had replaced Bundy Aid cuts with their own funds. Higher education advocates and program administrators urged New York State legislators on Tuesday to restore proposed gubernatorial budget cuts and increase funding for opportunity programs, warning that reductions would eliminate services for vulnerable students and destabilize institutions already facing financial stress. The joint legislative hearing on the 2025-2026 Executive Budget heard testimony from representatives of independent colleges, STEP/CSTEP programs, Liberty Partnerships, On Point for College, and NYPIRG, all requesting restoration of cuts plus additional funding increases ranging from 20 to 25 percent. Renaldo Alba, speaking for STEP and CSTEP programs serving 25,500 students across 118 projects statewide, warned that budget cuts in the coming fiscal year would trigger permanent elimination of projects for the next five years, not merely reductions. He requested restoration of a $1.6 million cut (4.37 percent) plus an additional 20 percent increase. Blair Horner of NYPIRG highlighted the erosion of Bundy Aid, a program established in 1968 that peaked at $114 million in 1989 but now receives only $22 million—far below the $260 million it would warrant adjusted for inflation. He cited Adelphi University as an example: the institution received over $3 million in Bundy Aid in 1980-81, equivalent to $12 million today, but now receives under $600,000. Horner noted that six colleges have closed in New York in the last two years, and nearly a dozen colleges with endowments under $750 million face dire financial situations. Elizabeth Altman of Liberty Partnerships Program reported that the 37-year-old dropout prevention initiative served over 18,000 students last year with a 96 percent retention rate, 86 percent graduation rate, and less than 1 percent dropout rate. She requested restoration of the Governor's proposed cuts plus a 20 percent increase. Kevin Marken of On Point for College testified that the organization's 3,000 current students and 4,600 graduates demonstrate persistence rates 10-25 percent higher than peers at community colleges. He requested $1 million in state funding to serve 500 additional low-income students. Independent college representatives emphasized the sector's economic importance, with CICU noting that independent institutions contribute $97 billion annually to the state economy and employ approximately 400,000 people when counting campus and spillover jobs. Sen. Toby Stavisky and Sen. Rachel May engaged substantively with testifiers, with Stavisky questioning how to remedy financially distressed colleges and May raising concerns about federal policy impacts on diversity initiatives and immigrant students. The hearing underscored a central theme: legislators face pressure to view higher education not merely as an educational investment but as economic development, particularly as federal policy shifts threaten student access and institutional stability.