More details on policy proposals dangerous to the universities that appear in both the House and Senate budget proposals, but not in Governor Brewer’s budget proposal:
Cutting SPEED funds for building repairs and restoration
The Stimulus Plan for Economic and Educational Development (SPEED) legislation was passed to do two things for Arizona—provide long-needed funding to repair, restore and build university facilities, as well as infuse state coffers with construction and employment-related revenues. The funding authority for SPEED has already been reduced and restrained in the current 2009 fiscal year budget—cut by 20 percent from $1 billion to $800 million; and a one-year moratorium on new construction. These cuts are significantly minimizing the impact of SPEED on our state’s economy, at a time when we direly need it. Budget proposals from the House and Senate would repeal the remainder of SPEED bonding available to the universities.
Sweeping University Auxiliary Accounts
Any attempt to sweep the universities’ tuition funds or auxiliary funds would be illegal for many reasons; including the fact that such sweeps would violate the legislature’s constitutional obligation to maintain, develop and improve the universities and would result in an unconstitutional impairment of the universities’ bonding contracts. Serious cash flow problems could occur should the state illegally sweep the universities’ auxiliary accounts—monies that may be needed for payroll come August, due to the rollovers. Cutting local and auxiliary funds to circumvent federal stimulus dollars is not only inappropriate, but is an unfair, additional cut to the universities budget.
Appropriating Tuition and Fee Revenues
Already our state legislature appropriates a portion of tuition and fees collected from students as part of the state funding they provide to the universities for their operating budgets. The remaining tuition monies, a significant sum, remain with the universities to fund institutional financial aid, student programs and debt service for facilities. This arrangement ensures that the majority of tuition dollars collected can be put toward programs that impact students the most directly. Also important to note, this proposal is illegal, because the funding for debt service, based on revenue, has typically been retained to show a direct connection between the revenue and the payment of the debt service.
