Iowa regents asking for $12 million solely for resident, undergrad aid

IOWA CITY - Iowa's public universities typically ask lawmakers for 'general” fund resources to be used for 'general” purposes - which they usually don't commit to spend in a specific way.

But after lawmakers during the last Legislative session cut the institutions' base appropriations by more than $30 million, their governing Board of Regents is trying something new: It's requesting a $12 million appropriations increase to be committed specifically for resident undergraduate student financial aid, according to board documents made public Monday.

The board, which will consider its state appropriations request at a special meeting Sept. 25, is not asking for any additional incremental increase in base 'general” funding for University of Iowa, Iowa State University, and University of Northern Iowa, beyond the $12 million.

That, in a sense, is something the institutions started planning for over the summer when all three universities proposed sharp annual tuition increases for the next five years - under the assumption of no bump in state aid for general operations.

UI and ISU leaders have requested a 7 percent annual hike for resident undergraduates, and UNI has suggested a 5 percent annualized increase, which some argue would make more financial aid imperative for the schools to accomplish their missions of being accessible and diverse.

The board hasn't yet unveiled proposed tuition rates for the next academic year, but it plans to consider a first reading in October and cast final approval in December.

Students and lawmakers have criticized the universities' tuition-hike proposals, saying they could price some students out of the market, especially first-generation and low-income students, who are making up a growing percentage of Iowa high school graduates.

Some have urged the board instead to up its advocacy for more state support, and board members will consider those avenues next week as well - as it plans to authorize regent staff members to seek collaboration with 'other sectors of state government.”

'The regent legislative efforts are an integral part in successfully receiving requested funding,” according to board documents.

University leaders, in proposing tuition hikes this summer, vowed to up financial aid offerings - and help prospects maximize their options - while insisting the need for more tuition revenue is dire, with faculty leaving for better-paying institutions, threatening the quality of the academic experience.

If lawmakers approve the $12 million increase in state appropriations for resident undergraduate aid, UI and ISU would get $5 million each, and UNI would get $2 million, according to the proposed funding request made public Monday.

The $12 million total would increase the state's total $483 million allocation for general aid to the public universities in the current budget year 2.5 percent to $495 million. That percentage falls within the Higher Education Price Index, as analyzed by the UI Economic Research Institute, which projects the fiscal 2019 range between 1.2 percent and 2.8 percent, according to regent documents.

Board documents also point out, in arguing for the increase, the state 'has no financial aid funding designated solely for students attending Iowa's public universities.” Those students currently have to apply for aid through programs available to all sectors - like the All Iowa Opportunity Scholarship, which got a $3.1 million appropriation this year; or the Iowa National Guard Education Assistant Program, with its $2.8 million appropriation.

Pointing to the state's Iowa Tuition Grant, the board contrasted the millions lawmakers commit annually specifically for students who attend private or for-profit schools - $46.6 million this year for nonprofit enrollees and $1.5 million for those heading to for-profit institutions.

'The $12 million appropriations request for financial aid to undergraduate students from Iowa would be available solely to students attending one of Iowa's public universities,” according to the board proposal.

Regents reported Iowa is last in the country in need-based aid awarded to students at public institutions and that more than $20 million would be required to move the state up one spot to No. 49.

If lawmakers approve the $12 million request, board spokesman Josh Lehman said, the universities would work with the regents to determine how to distribute it to resident undergraduates - whether by need or first-generation students, for example.

When asked about the regent proposal, Speaker of the House Linda Upmeyer, R-Clear Lake, said, 'As with all funding requests, we will have to wait and see how much revenue will be available next fiscal year before making any commitments.”

The board's ask for $12 million more in general university appropriations is part of its fiscal 2019 total appropriations request of $622.35 million, which includes funding for the board's special schools, regional centers, Iowa Public Radio, and 'special purpose” uses like UI's state hygienic lab and ISU's agriculture experiment station.

During the board's special meeting next week, each university president also will provide a report on 'efficiencies and reallocations” at their respective institutions - in light of the deep cuts they had to make following state funding reductions.

Details of those reports weren't made public Monday.

Sen. Herman Quirmbach, D-Ames, said he fully supports committing more resources to residential undergraduate student aid but would like to see the board ask for even more - reiterating a point the board makes in its proposed funding request: that state support for higher education in Iowa remains well below 2009 levels, even as enrollment has skyrocketed.

In fact, according to board documents, higher education appropriations in the 2001 budget year in Iowa were $65 million-some more than in the current budget year. And Quirmbach said he wants the board, at least, to demand back the money it lost in the last Legislative session.

'I am disappointed they have not asked for full restoration of the amounts appropriated a year ago,” Quirmbach said. 'By not requesting that, they are in essence saying we didn't need that money anyway last year. And that is demonstrably false.”

Rep. Dave Jacoby, D-Coralville, said he can't predict whether the regents request would receive Legislative support 'given the majority party's complete botching of the budget, along with a general disdain for public education.”

'I certainly think it's a fair proposal and one that I will work across the aisle to successfully balance the budget,” Jacoby said.

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