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9/6/2007
More budget drama - the media are piling on
Ok, so college kids are whining. Poor college kids at that. And I, average Joe citizen am supposed to get all up in arms and blame the Assembly Republicans that “cut” their program and that are holding up the budget.
The AP story – and several variations of it - has shown up all over the place. It says some kids are having to wait for their Wisconsin Higher Education Grant. And because they don’t have the grant, they may have to drop out. And of course, it details the sad facts of one or more struggling students.
Carol Miller, Director of UW-Whitewater’s financial aid office, is quoted as saying “…a lot of students don’t apply for financial aid until later….I’m sure some students will not be able to attend. I’m sure it’s causing students a lot of stress.” Here’s Rose Reisinger, a 22 year-old fifth-year senior: “It’s like we all have deadlines. Meet them!”
Did I get this right? Students and administrators are hollering at the legislature for being late with the budget, but it’s ok if the students were late in applying for aid? I think I’m stressed – stressed about the severe deficit our state has dug itself in to – and some in the legislature are struggling to address.
So here, is the rest of the story.
$39.3M was budgeted for the UW Wisconsin Higher Education Grants for the 2006-07 school year. Not knowing what the budget would be, administrators accepted applications so as to be able to distribute $39.3M for the 2007-08 school year, conservatively projecting that no increase would be available. Just like airlines do, applications were accepted to a level of 127% of the projected dollars, allowing for those students who wouldn’t show up to claim their grant.
Accepted applications, from those submitted through June 27, have been funded. Students submitting requests after June 27 were put on a waiting list, as all the projected dollars ($39.3M) had been spent. Isn’t that what you do at home when you have spent all your budget?
It’s true that between 2000-01 and 2004-05, the average cost of an undergraduate education increased by 20.9%, while average need-based aid per student trailed those costs, increasing by 18.3%. It was a time of extreme pressure on financial aid budgets – and it’s not as if governments didn’t rise to the challenge. During that same time period, the number of students receiving aid increased 23.5%, from 89,129, to 110,093. And total aid available (from all sources) increased 46%, from $446M to $652M – that’s 10% a year!
And yes, UW administrators had to make decisions in the face of uncertainty because of those big bad legislators. How much should the UW decide to spend for UW WHE grants? They had a few numbers from which to choose:
Choice #1: As mentioned earlier, the previous year’s budget, $39.3M
Choice #2: Go with the Assembly budget, which allows for no increase, i.e., $39.3M
Choice #3: If a budget never passes, current law would allow UW WHE grants to increase to $41M.
Choice #4: Go with the Senate budget, which calls for $50M for UW WHE grants – a 27% increase in one year!
Choice #5: Go with the ever-possible (I suppose) middle-of-the-road compromise, about $44 or $45M.
Bingo! It’s Doors Number 1 AND Number 2! Very logical choices. (And lo and behold, if it happens that a budget never does pass, the budget for UW WHE grants rises to $41M. imagine that.)
How about this – UW WHE grants have increased 10.6% a year since 1998. Is that enough? I suppose $100M isn’t enough – but someone has to draw the line. For crying out loud, enough drama already.
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