Importance of Non-Profit Independent Colleges and Universities in New Jersey
Non-profit independent colleges and universities play a vital role in New Jersey's higher education system by offering diverse options for students, supporting research, attracting international students, and contributing significantly to the state's economy. These institutions provide high-quality education in various disciplines, serving a diverse student population and enhancing the overall educational landscape in the state.
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6th Annual Legislative Conference April 22, 2022 1
ICUNJs 14 non-profit, independent colleges and universities are an important, strategic asset within the State s higher education system Provide fourteen additional options for students to CHOOSE college or university setting that best fits their needs size, location, culture, program offerings, etc. Offer additional opportunities for students to continue education in New Jersey rather than leaving Serve diverse racial, ethnic and economic populations that match public sector and state s diverse demographics Provide high quality undergraduate and graduate education in wide variety of disciplines to meet workforce demands 3
ICUNJs 14 non-profit, independent colleges and universities are an important, strategic asset within the State s higher education system Provide opportunities for valuable and important research that will help support the State s economic growth Attract out-of-state and international students to offset out-migration Results with limited taxpayer funding approximately $130 million with 90% directly to students Economic impact of between $4 billion and $4.5 billion $27 or $30 to $1 return on state investment 4
Importance of independent colleges and universities highlighted in 2010 Kean Commission report Overall, the independent colleges and universities expand the diversity and choice afforded to New Jersey s college students, and they have done so for a long time. New Jersey s independent colleges and universities serve an important public purpose. They annually award almost as many baccalaureate degrees and advance degrees master s, professional, and doctorate as New Jersey s three public research institutions. 5
Over 63,000 students attend non-profit public mission independent colleges and universities Fall 2021 10,681, 3% 8,391, 2% Rutgers NJIT/Rowan/Montclair 69,541, 18% State colleges and universities 63,671, 17% Community Colleges 51,684, 14% Public mission independents 114,752, 30% 61,440, 16% Proprietary independents Religious independents 6
Over one in five of four year undergraduate students attend non-profit public mission independent colleges and universities Fall 2021 8,091, 4%5,822, 3% Rutgers NJIT/Rowan/Montclair 49,342, 25% State Colleges and Universities 43,149, 22% Public mission independents 40,382, 20% Proprietary independents 52,304, 26% Religious independents 7
Nearly one-third of graduate and professional students attend independent colleges and universities Fall 2021 300, 0% Rutgers 4,859, 7% NJIT/Rowan/Montclair 20,199, 31% State Colleges and Universities 20,522, 31% Public mission independents Proprietary independents 11,302, 17% Religious independents 9,136, 14% 8
Diversity in undergraduate enrollment at independent colleges is similar to public colleges (2020 - 2021) 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% ICUNJ 5.0% 0.0% Public 9
Diversity in undergraduate enrollment at independent colleges has shifted from 2010-2011 to 2020-2021 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 2010-2011 0.0% 2020-2021 10
More than half of States Four-Year Minority Serving Institutions are ICUNJ members Bloomfield College (HSI/PBI) Caldwell University (HSI) Fairleigh Dickinson University Metro (HSI) Felician University (HSI) Saint Elizabeth University (HSI) Saint Peter s University (HSI) 11
Independent colleges and universities have three of the five highest percentage of African-American undergraduate enrollment (2020-2021) 60.0% 50.9% 50.0% 40.0% 30.1% 30.0% 22.3% 19.9% 19.4% 20.0% 10.0% 0.0% Bloomfield Saint Elizabeth NJCU Kean Felician 12
Independent colleges and universities have three of the six highest percentage of Hispanic enrollment (2020-2021) 50.0% 43.8% 45.0% 42.6% 40.0% 33.2% 35.0% 32.1% 32.0% 31.1% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% St Peter's NJCU WPU Felician Kean Bloomfield 13
Independent colleges and universities serve similar low-income population as senior public colleges and universities federal PELL grants (2020-2021) 40.0% 37.6% 35.0% 33.4% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Public ICUNJ 14
Independent colleges and universities serve similar low-income populations as senior public colleges and universities State TAG grants (2020-21) 37.0% 35.7% 36.0% 35.0% 34.0% 33.0% Full Time Undergrad 32.0% 30.9% 31.0% 30.0% 29.0% 28.0% Public AICUNJ 15
Eleven independent colleges and universities have smaller undergraduate enrollment than the smallest state college or university eight are less than half the size (Fall 2021) 6,000 5,000 5,145 4,000 4,067 4,080 3,000 3,232 2,000 1,9992,134 1,612 1,631 1,635 1,000 1,1281,299 752 0 16
Smaller size institution leads to lower student faculty ratios 18 16 16 14 12 12 10 8 6 4 2 0 ICUNJ Public Student Faculty Ratio 17
Independent college and university graduates are helping to meet NJ s workforce demand of 21st century (2018 graduates) 70% 64% 63% 60% 51% 49% 48% 47% 50% 36% 40% 30% 28% 27% 26% 26% 26% 30% 25% 23% Bachelor 20% 12% Graduate 10% 0% 18
Providing choice for students and providing results for workforce with limited state resources nearly $1.9 billion vs $129 million (FY 2021) 2,000.0 1,800.0 1,600.0 1,400.0 1,200.0 Fringe 1,000.0 Operating 800.0 TAG/EOF/STARS II 600.0 400.0 200.0 0.0 Public 4 year ICUNJ 19
Providing choice for students and providing results for workforce with limited state resources $12,600 per student vs $2700 per undergraduate student (FY 2021) $14,000 $12,600 $12,000 $10,000 $8,000 $6,000 $2,700 $4,000 $2,000 $0 Public 4 year ICUNJ 20
Providing choice for students and providing results for workforce with limited direct state resources for operating aid over $1.8 billion vs $20 million (proposed FY 2023) 2,000.0 1,800.0 1,600.0 1,400.0 1,200.0 Fringe 1,000.0 Operating 800.0 600.0 400.0 200.0 0.0 Public 4 year AICUNJ 21
Direct state operating support less than half of FY 2008 levels while costs have risen $30.0 $24.0 $25.0 $20.4 $19.5 $18.4 $20.0 $16.4 $15.0 $28.0 $10.0 $1.7 $5.0 $3.0$7.0$9.5 $0.0$0.0$0.0 $1.0$1.0 $1.5$1.0$1.0$1.0 $0.0 Full Funding 2017 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2018 2019 2020 2021 2022 2023 22
Independent colleges and universities strive to keep cost down for students Provide over $1 billion in institutional aid 95% of first time full-time undergraduate students receive some institutional aid including some promise programs Over 80% of all student aid comes from institutions Partnerships with county colleges 2+2 programs Guaranteed admission programs Discounted tuition for transfers from county colleges Degree completion at county college 23
15% of students attending ICUNJ institutions will pay NOTHING and over 40% of students paid less than $10,000 in tuition and mandatory fees in 2018-19 due to federal, state and institutional aid 30.0% 26.6% 25.6% 25.0% 20.6% 20.0% 15.5% 15.0% 11.6% 10.0% 5.0% 0.0% No cost Less than $10,000 $10,001 to $20,000 $20,001 to $30,000 More than $30,000 24
NJ Independent colleges net price competitive with NJ public colleges and NY and PA independent colleges (2017-2018) $40,000 $37,686 $35,285 $35,000 $31,218 $29,050 $30,000 $26,896 $24,669 $26,260 $26,016 $23,970 $25,000 $22,484 $21,667 $19,977 $20,543 $19,648 $18,686 $20,000 $17,756 $17,115 $15,781 $14,541 $15,000 $12,916 $10,000 $5,000 $0 $0- $30k $30k - $48k $48k - $75k $75k - $110k $110k+ NJ Private NJ Public PA Private NY Private 25
Independent colleges and universities provide over $4 billion economic impact to NJ $35 - $40 to $1 return on taxpayer investment Over 20,000 employees with payroll of over $1.2 billion Additional contract employees in areas of facilities, food service, bookstores, etc. Additional money spent on private vendors and contractors including engineers, architects, lawyers, etc. 26
Independent colleges and universities provide over $4 billion economic impact to NJ Projected capital construction of nearly $2 billion in 2022 and 2023 Out-of-state and international students bring in new money to the state Nearly 600,000 living alumni with more than half still living in New Jersey Excited to work with Governor and Legislature on future economic development initiatives and growing economy 27
Legislative Agenda FY 2023 Budget Increase of $5 million in operating aid Increase operating aid from proposed $8.5 million to $13.5 million still below $16 million in FY 2010 and $28 million full funding level Increase would provide funding to offset cost drivers including unprecedented inflation, legislative mandates and provide enhanced student services such as mental health 28
Legislative Agenda FY 2023 Budget Increase in TAG and EOF Requesting $10 million for minimum 2% increase in TAG awards for ALL students Support historical allocation of funding to all students concerned about last year allocation that favored less then one-third of students Support Governor s proposed increase in EOF and request $1 million increase in support program component 29
Maintaining current TAG eligibility and grant levels is vital to allow students broadest choice 2010 Kean Commission recommended The State should maintain current policies regarding Tuition Aid Grant funding at all eligible institutions of higher education in New Jersey Students and institutions alike rely on this funding. Significant changes in policy that reduce aid can cause some students to no longer be able to afford their college education, and can jeopardize the financial strength of the institutions themselves. 30
Legislative Agenda FY 2023 Budget Expand Garden State Guarantee Requesting Garden State Guarantee be expanded to non-profit independent colleges and universities that agree to similar program requirements. Funding should follow the student and allow them to make the decision on which college to attend based on their educational. NY program covers both public and independent. 31
Summary Our 14 independent, non-profit, public-mission colleges and universities are an important component of the overall higher education structure in New Jersey Work diligently to continue to provide the access and affordability to offer students more choices and opportunities to stay in New Jersey for college education thus limiting the out-migration Face numerous challenges in a market that is becoming more competitive Want to work cooperatively with Legislature and Governor on improving access, affordability and the quality of higher education in New Jersey 32
Thank You FY 2022 increase in operating aid to $7 million Expansion of EFA statute to allow working capital loans and affiliated entity financing Recognition of higher education role in research and economic development Listening to our concerns and issues when considering legislation 33
Operating Aid/Student Aid/Capital Decline in high school graduates/Questioning of Value of College/Impact of GSG Residual Impact of COVID Costs/Housing Revenue/Student Preparedness State Support & Assistance State and Federal Mandates/Program Approval Process Campus Mental Health Campus Cost Drivers Inflation/Employee Retention & Recruitment 35
Residual Impact of COVID on Costs, Revenue and Student Preparedness Costs have continued through the current academic year, and some will continue in future Testing remains a priority and with NCAA a requirement Cleaning supplies, PPP, technology Staffing issues Housing revenue down in current semester due to reduced capacity and demand Fixed costs such as debt service, HVAC, insurance, maintenance are same regardless if at 100% or 75% Hope that this turns around as we move away from pandemic Incoming students in Fall 2021 and Fall 2022 are impacted by disruptions in their last years of high school Remedial help will be needed; importance of the EOF support services 36
Campus Mental Health Major issue BEFORE COVID and institutions were focusing more resources even when state support was diminished COVID expanded the need and shined a light on issue Recognize broader than just college students OSHE survey shows it is major issue in ALL institutions Each campus continues to work on these needs of their students OSHE/PC have established ad-hoc committee needs assessment and best practices Professionals from our campuses need to be at the table 37
Campus Mental Health Governor noted in budget that he will work with the Legislature to develop and implement student mental health and success initiatives with the American Rescue Plan State Fiscal Recovery Fund (ARP SFRF). These initiatives would provide funds to school districts and colleges so they could access mental health services for students directly or connect students with mental health providers in their communities. Numerous legislative initiatives need to recognize one size does not fit all and there will be costs Resources would be helpful either thru greater increase in operating aid or use of ARP funds Recognize that the community-based support system needs to be strengthened since many campuses rely on them since they do not have sufficient campus-based staff 38
Campus Cost Drivers Recent Moody s report - Colleges face their highest expense growth in over a decade as rising costs combine with wage inflation, labor shortages and a push to hire Inflation impacts food, fuel, heating, and other commodities Staff will be pushing for larger salary increases Difficult environment to maintain staff and recruit new staff salary demands are increasing due to strong job market Federal support from COVID is gone and may have to use campus funds to replace 39
State and Federal Regulatory Environment Recognize that many statutory and regulatory mandates may have sound policy basis BUT there are increased costs to compliance Smaller institutions do not have the FTEs that larger institutions have to comply The increased number of even small mandates is like the children s game straw that broke camels back the cumulative impact is what is potentially harmful 40
State and Federal Regulatory Environment Many of the new requirements will not help students either academically or in decision making on which college to attend Provide data that think tanks , advocacy groups and academics will use to support their policy efforts Ask that you consult prior to any new mandates on the actual impact Consider a red-tape commission to look at existing mandates 41
State and Federal Regulatory Environment Program review process is cumbersome and time consuming Perspective of those that came from other states Does not allow the flexibility and nimbleness to react changing workforce needs 42
Recent Mandates 2018-2019 & 2020-2021 Sessions Financial reporting and monitoring Inclusion in 2009 New Jersey College Student and Parent Consumer Information Act including expansion of data required Develop open textbook plans Increase in minimum wage Earned Sick Leave Require notification of students on income-based repayment and other loan repayment estimates Mental health issues 43
Enrollment Challenges Approaching a cliff in high school graduates Not clear how COVID will impact future student decisions; could be positive if students want to stay closer to home Continuing national dialogue on value of higher education and bachelor degrees NJ marketing campaign that expands on BeMore is needed to promote NJ colleges and the importance of college education 44
Enrollment Challenges Moody s report - rising wages and a low unemployment rate can convince high school graduates and those who might go back to college to instead seek work Moody s report - inflation hits low-income households and the students who come from them hardest. Higher prices for necessary expenses like food and transportation mean less discretionary income to spend on priorities like tuition. State Garden State Guarantee may push students to the free option over what could be best for them Need to consider expansion of GSG to ICUNJ institutions to allow aid to follow the student to enhance student choice NY program covers both public and independent 45
State Support Necessary to Offset the Issues and Challenges Each of these issues highlights the need for State support to meet the needs of the independent colleges and maintain us as viable and stable options for students to choose Operating aid increases allow us revenue to offset the cost drivers, legislative mandates and provide enhanced student services such as mental health TAG and EOF help level the playing field to allow students to choose best option GSG should also be expanded to allow more student choice EOF support services program provides resources to help those students that need them especially those that had their high school years interrupted by COVID Capital funding allows us to keep facilities up to date; students notice these issues when visiting campus State support of a marketing campaign would help keep NJ high school students in the state and thus increase overall enrollment 46
Recent Moodys Report on Higher Education Colleges face their highest expense growth in over a decade as rising costs combine with wage inflation, labor shortages and a push to hire. At the same time, volatility has returned to the investment market, and recent public funding increases are waning. Colleges also face mounting enrollment uncertainty that raises risks for tuition-dependent institutions that lack a national brand and deep pockets. Expect the converging pressures to squeeze many colleges' budgets in fiscal 2023 and beyond. 47
Recent Moodys Report on Higher Education The tight labor market doesn't merely drive-up colleges' costs. It contributes to enrollment uncertainty and, by extension, to unclear revenue prospects. That's because rising wages and a low unemployment rate can convince high school graduates and those who might go back to college to instead seek work. At the same time, inflation hits low-income households and the students who come from them hardest. Higher prices for necessary expenses like food and transportation mean less discretionary income to spend on priorities like tuition, Moody's noted. 48
