NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6915A REVISED 5/31/11
SPONSOR: Peoples-Stokes TITLE OF BILL: An act to amend the education law and the state
finance law, in relation to tuition and state operating support of the
state university of New York; and repealing certain provisions of the
education law relating thereto
PURPOSE:
The creation of a rational tuition policy for the state university of
New York and to allow tuition revenue to be used solely for the expenses
of the state university in carrying out its objectives and not to be
used to offset or reduce appropriations by the state in support of the
operations of the state university. The legislation would else provide a
5 year rational tuition plan that allows the SUNY Board of Trustees the
ability to set annual tuition at no more than a year for each of the
next five years.
SUMMARY OF SPECIFIC PROVISIONS: Allows the SUNY Board of Trustees to
set a rational tuition policy and submit a master tuition plan at a rate
no greater than 5.5% a year. Repeals section 355 (8b) of the education
law, and thereby enabling the creation of a state university trust fund
or 'lock box', whereby tuition and fees would be disaggregated from
other general funds, and thus, not subject to future sweeps into the
general fund. The legislation would also mandate the prohibition of
incremental increases in tuition to backfill cuts in state support for
SUNY by requiring the State to fund SUNY to at least an established
baseline year and requiring the State to fund SUNY to at least an estab-
lished baseline year, plus additional funding to cover mandatory costs.
JUSTIFICATION: The recent fiscal austerity measures brought to bear
on SUNY have created a tremendous financial strain both on the insti-
tutions, parents and students. The lack of a systematic and rational
tuition plan coupled with massive budget cuts has only exacerbated an
already strained system. By allowing SUNY to set a reasonable and
rational tuition policy with direct mechanisms to keep the revenues
routed back into the institutions will only help families better plan
college costs and enable the institutions to retain more of the revenue
they create and put it where they need it most, while being less reliant
on the implementation of fees and surcharges to raise revenues beyond a
base level of state mandated support.
PRIOR LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect July 1, 2011
STATE OF NEW YORK
________________________________________________________________________
6915--A
2011-2012 Regular Sessions
IN ASSEMBLY
April 5, 2011
___________
Introduced by M. of A. PEOPLES-STOKES, MORELLE, HOYT -- read once and
referred to the Committee on Higher Education -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the education law and the state finance law, in relation
to tuition and state operating support of the state university of New
York; and repealing certain provisions of the education law relating
thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subparagraph 4 of paragraph h of subdivision 2 of section
2 355 of the education law, as amended by chapter 309 of the laws of 1996,
3 is amended to read as follows:
4 (4) (i) The trustees shall not impose a differential tuition charge
5 based upon need or income. All students enrolled in programs leading to
6 like degrees at state-operated institutions of the state university
7 shall be charged a uniform rate of tuition except for differential
8 tuition rates based on state residency. Provided, however, that the
9 trustees may authorize the presidents of the colleges of technology and
10 the colleges of agriculture and technology to set differing rates of
11 tuition for each of the colleges for students enrolled in degree-grant-
12 ing programs leading to an associate degree and non-degree granting
13 programs so long as such tuition rate does not exceed the tuition rate
14 charged to students who are enrolled in like degree programs or degree-
15 granting undergraduate programs leading to a baccalaureate degree at
16 other state-operated institutions of the state university of New York.
17 [The trustees shall not adopt changes affecting tuition charges prior to
18 the enactment of the annual budget.]
19 (ii) Tuition revenue shall be used solely for the expenses of the
20 state university in carrying out its objectives and purposes and shall
21 not be used to off-set or reduce appropriations by the state in support
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10554-03-1
A. 6915--A 2
1 of the operations of the state university. The state shall appropriate
2 annually and make available general fund operating support for the state
3 university in an amount not less than the amount appropriated and made
4 available to the state university in state fiscal year two thousand
5 eleven--two thousand twelve. Beginning in state fiscal year two thousand
6 twelve--two thousand thirteen, such general fund operating support shall
7 be adjusted by amounts to fully support cost increases related to
8 contractual and collectively bargained salary increases, energy-related
9 costs and enrollment-related cost increases; provided, however, that in
10 any state fiscal year when personal income tax receipts decline from
11 personal income tax receipts in the previous state fiscal year, general
12 fund operating support made available to the state university may be
13 reduced by no more than the same proportion as personal income tax
14 receipts have declined. On or before November thirtieth of each year,
15 the trustees shall approve and submit to the chairs of the assembly ways
16 and means committee and the senate finance committee and to the director
17 of the budget a master tuition plan setting forth the tuition rates that
18 the trustees propose for resident and non-resident undergraduate, gradu-
19 ate and professional degree students for the succeeding five state
20 university fiscal years. For the state university fiscal years commenc-
21 ing two thousand eleven--two thousand twelve and ending two thousand
22 fifteen--two thousand sixteen, the resident undergraduate tuition rates
23 shall increase each year by not more than five and one-half percent over
24 the tuition rates of the prior fiscal year. Tuition rates of the state
25 university shall not be subject to rulemaking pursuant to the provisions
26 of the state administrative procedure act.
27 § 2. Subdivision 8-b of section 355 of the education law is REPEALED.
28 § 3. The state finance law is amended by adding a new section 99-u to
29 read as follows:
30 § 99-u. State university of New York agency trust fund. 1. There is
31 hereby established in the joint custody of the state comptroller and the
32 commissioner of taxation and finance a fiduciary fund to be known as the
33 "state university of New York agency trust fund".
34 2. The state university of New York agency trust fund shall consist of
35 all monies appropriated and made available to the state university in
36 general fund operating support and tuition revenue appropriated and made
37 available from special revenue funds.
38 3. The state comptroller is authorized and directed to transfer annu-
39 ally, from the general fund and special revenue funds to the state
40 university of New York agency trust fund, general fund operating support
41 and tuition revenue appropriated and made available to the state univer-
42 sity in accordance with the provisions of subparagraph four of paragraph
43 h of subdivision two of section three hundred fifty-five of the educa-
44 tion law. The state comptroller shall transfer such monies in four
45 payments in the following amounts: one-half on or before July first,
46 one-sixth on or before October first, one-sixth on or before January
47 first, and one-sixth on or before April first.
48 4. Monies in the state university of New York agency trust fund shall
49 be expended solely for the expenses of the state university in carrying
50 out its objectives and purposes. The provisions of section forty-nine of
51 this chapter and any other law notwithstanding, monies in the state
52 university of New York agency trust fund shall not be impounded nor
53 transferred or otherwise made available for other purposes.
54 § 4. This act shall take effect July 1, 2011.
