With most state legislatures set to convene for new sessions in January, attention is turning to the FY 2025 budget recommendations governors are submitting for lawmakers’ consideration.
While the majority of governors will be announcing their budgets in the next month, several have already unveiled their state funding plans. For the most part, these initial proposals include modest to substantial increases in appropriations for higher education.
In most states, public funding for colleges and universities comes in several buckets:
- operating funds for public two-year and four-year colleges;
- funds for student financial aid, either in the form of state-supported merit or need-based scholarships;
- targeted investments in specific programs that meet critical workforce needs or boost the state’s economic competitiveness;
- money and bonding authority for capital construction and renovation.
So how is higher education faring in this first round of proposals? Here’s a summary of what seven governors have recommended so far.
Virginia
Virginia Governor Glenn Youngkin’s proposed biennial budget features a 12% cut in the state’s income tax that would be partially offset by an increase in sales tax. Youngkin’s proposal for higher education includes $100 million in one-time funds to establish a biotechnology, life sciences, and pharmaceutical manufacturing network, dubbed the Virginia Research Triangle.
The bulk of the new funding would be directed to the Commonwealth’s three major research universities – the University of Virginia, Virginia Tech and Virginia Commonwealth University – to ramp up research commercialization efforts.
Youngkin’s budget would also allocate $40 million to establish the “Diploma Plus” program, aimed at helping students earn “an industry-recognized credential in a high-demand field.”
Kentucky
As part of his executive budget for 2024-26, Kentucky Governor Andy Beshear has proposed an 8% increase in state appropriation for public colleges and universities – $60 million more in fiscal year 2025 and $78.9 million added in 2026.
In addition, Beshear has proposed using $400 million in bond funds for capital projects at the state’s post-secondary education institutions and nearly $150 million in bonding and general funds for construction projects affected by cost overruns and inflation. Beshear’s budget also would provide additional funding for financial aid and student loan forgiveness.
Alaska
As part of his fiscal year 2025 budget, Alaska Governor Mike Dunleavy has recommended more than $20 million in additional funding for the University of Alaska, including $6.1 million for compensation increases for faculty and staff; $4.5 million to cover various fixed cost increases; and $10 million to support the University of Alaska Fairbanks’ goal of achieving R1 research university status.
Colorado
The FY 2024-2025 budget recommended by Colorado Governor Jared Polis includes $42.7 million more in higher education funding. In addition to increased financial aid, $33.4 million would go to public colleges and universities so they can keep their in-state tuition increases at 2%, a goal Polis had set for the institutions. That amount is insufficient to cover inflation according to some legislators, setting up a show down with Democrat lawmakers who are unhappy with the governor’s recommendation.
Utah
Governor Spencer Cox has proposed a nearly $30 billion operating budget for Utah for fiscal year 2025. Included in that amount are $168.4 million more in a combination of ongoing and one-time funds for higher education. Contributing to that total are $30 million in performance funding, $34.8 million for a 2.3% cost-of-living increase and $11.9 million in various workforce initiatives.
Hawaii
In a supplemental FY 2025 budget recommendation that proposes hundreds of millions of dollars in new funding to help Maui recover from its devastating wildfire, Hawaii Governor Josh Green recommended increases in both operating costs and capital projects for the University of Hawaii.
The university’s board of regents had requested $56.3 million in additional funding for fiscal year 2025. The governor’s budget adds $28.6 million, of which $21.2 million would be used to restore general fund support for UH to pre-COVID-19 pandemic levels. In addition, Green would add $66.5 million for University of Hawaii capital renewal, deferred maintenance and campus modernization. The university had requested $331.5 million for those projects.
Florida
Florida Governor Ron DeSantis is recommending a $114.4 billion budget for FY 25, a decrease from the current year’s $119.1 billion. Higher education institutions would not generally see an increase in state appropriations under his plan, although some specific institutions would receive increases for various purposes as would workforce training.
DeSantis did address one particular priority. He recommended setting aside $1 million in general revenue to cover possible legal expenses related to “litigation” over Florida State University being omitted from the College Football Playoff.
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