State budget increases for fiscal year 2013

Delaware Gov. Jack Markell recently proposed a state budget that will not decrease funding to the university, after significant cuts to last year's budget.

The state's contribution to the university's operations budget, which is a recommendation and must still go through legislative approval in the following months, is approximately $112.4 million, a $825,000 increase from last year, according to Bert Scoglietti, the director of policy and external affairs for the state's Office of Management and Budget.

Scoglietti said the increase does not make a significant difference.

"There's no decreases but there was really no real increase," Scoglietti said.

In a meeting with the state Joint Finance Committee on Feb. 6, university President Patrick Harker said he understands the state is going through tough economic times, and appreciates the proposed budget.

"I want to express how grateful we are that—under still-difficult economic conditions—we see no reduction to the university in the governor's proposed fiscal year 2013 budget," Harker said. "We support Gov. Markell's recommended budget, and we deeply appreciate his efforts to keep higher education funding stable."

Last year the state budget was cut by 3.9 percent, or $4.5 million. According to Harker, state support was 17 percent before the recession. Now it's approximately 12 percent.

"Clearly, this has been a challenging few years in terms of reducing costs while providing students the high-quality education they deserve," Harker said. "For three consecutive years, we've cut our budget while enrolling more students—this year, a record number of freshmen."

The amount allocated for scholarships and grant aid increased by 40 percent since 2009. The university now spends $42 million, which is increased by 51 percent since 2009.

In 2009, the state contributed to 25 percent of the grant and scholarship fund, and contributed 17 percent this year. However, this year, federal funding accounts for more than it did three years ago. The federal government now funds 15 percent, up from 12 percent in 2009.

Harker said he wants to continue supporting the Commitment to Delawareans program, a guarantee by the university to admit all qualified Delaware residents. Currently, 40 percent of these undergraduate students receive financial aid. This year, Harker said $7.9 million will go toward the program, which is in its third year. He said next year, as more students enroll, the budget will be roughly $10.5 million.

"The financial component of the commitment is a pledge to meet the full demonstrated need of every resident student, and to cap students' total debt at one-quarter the cost of a UD education," Harker said. "This financial pledge is critical to Delaware students and families, especially now. We have to put real money behind it, and we are."

University budget director Michael Jackson stated in an email message that the budget also provides support for the seven colleges and university operations including Campus Safety, library functions, and the Delaware Biotechnology Institute.

Markell also proposed a $3 million capital budget, which will be used to fund the renovation of laboratories across campus, including university laboratories located in Sussex County, Jackson said.

Harker said the percentages students contribute to the total cost of their education are fixed. Delaware residents pay 34 percent of the full cost of a university education, while out-of-state students contribute to 85 percent of the cost.

"We've been vigilant in ensuring that our resources go to our highest priorities: our students and our college programs," he said. "While college and student aid resources have risen, our administrative budget has held flat."

According to Jackson, the administration does not yet know how the budget will affect tuition. That will be decided later in the year, and needs Board of Trustee approval.

Scoglietti said the budget will be finalized in late June. The administration supports Markell's budget proposal, said J.J. Davis, Vice President for Finance and Administration, in a statement.

"While there are still layers to the legislative approval process for the budget, we look forward to working with the governor and General Assembly and appreciate the value they place on higher education in Delaware," Davis said.