Tuition grant cuts undermine Iowa's future

Gov. Chet Culver:

In these tough economic times, we are aware of the difficult choices and budget reductions that are necessary in order to balance the state's budget. While a 10 percent across-the-board reduction is painful for our students, when it is applied across all areas of state government, it is reasonable and fair.

We are, however, concerned and puzzled about the action you took when you restored reductions in all of the scholarship and grant programs except for the Iowa Tuition Grant Program.

The program, created by the Legislature almost 40 years ago to ensure access to Iowa's private colleges and universities, has been a most successful and creative financial aid program for low-income Iowa students. It helps provide the best opportunity for success for Iowa students who thrive in smaller classes with instruction directly from professors. The average taxpayer subsidy for an Iowa student who attends a state university is currently $10,674 for each of 48,116 Iowa students, while the Iowa Tuition Grant maximum subsidy is $4,000 for nearly 15,000 qualifying Iowa taxpaying resident students. Further, the median family income of students at Iowa's public universities is higher than at Iowa's private colleges and universities.

We are puzzled that $742,670 was taken out of the Scholarship and Tuition Grant Reserve Fund at the Iowa College Aid Commission to fund three scholarship and grant programs, but none of that money was used to help needy Iowa students who receive the Iowa Tuition Grant. The major source of this reserve account has been accumulation of small unspent balances in the Iowa Tuition Grant Program over a number of years.

Iowa's 29 private colleges and universities enroll more than 56,000 students each year; 55 percent are Iowans. Our institutions promote quality undergraduate and graduate education, diversity, an Iowa work ethic and Iowa values.

Our institutions are a net importer of students to the state. And last year, our 29 member institutions provided $297 million in direct financial aid to our students. This represents money raised from our generous donors, many from outside the state. We raise millions of dollars to renovate, build and keep current our facilities. And most important, we are non-profit institutions whose sole mission is to provide access to quality higher education.

Governor, in an economic climate where low-income and lower-middle income families are hurting the most, programs that provide direct support to them should be the last to be cut.

Gary W. Steinke is president of the Iowa Association of Independent Colleges and Universities.