Lamont Protects UConn and CSCU from Immediate Budget Cuts
Connecticut Governor Ned Lamont has decided that public colleges and universities, specifically the University of Connecticut (UConn) and the Connecticut State Colleges & Universities (CSCU), will not face additional budget cuts in the upcoming fiscal year. This announcement comes as the state seeks to implement significant efficiency savings mandated by the legislature in the new budget. According to the governor’s budget spokesman, Chris Collibee, these institutions will not be required to forfeit further funding while they adapt to the loss of over $270 million in federal pandemic grants.
While higher education institutions are spared from immediate cuts, other state agencies will likely absorb the financial burden. To comply with the constitutional spending cap, Governor Lamont must identify $106 million in savings elsewhere in the budget, which totals approximately $27.2 billion for the fiscal year commencing on July 1.
Rep. Gregory Haddad, co-chairman of the Higher Education and Employment Advancement Committee, expressed gratitude for the decision to maintain funding for UConn and CSCU. He acknowledged the significant cost-cutting efforts these institutions have already undertaken while striving to prioritize student services and maintain affordability.
The General Assembly has faced increasing difficulties in adhering to a spending cap that aligns most state budget growth with household income or inflation. Governor Lamont and his Democratic colleagues have successfully postponed contentious debates over higher education funding since 2021, largely due to the allocation of more than $2.8 billion in emergency pandemic relief from Congress through the American Rescue Plan Act (ARPA).
Traditionally, governors facing funding requests from universities have two options: deny the requests, which could lead to program cuts or tuition increases, or grant them at the expense of other programs. In recent years, the state opted for a third route, using temporary ARPA funds to cover ongoing higher education costs. This approach, while effective in the short term, was acknowledged to create future fiscal challenges, as the funds are expected to be depleted by 2026.
Governor Lamont has suggested that universities should have better prepared for the eventual loss of these funds. Higher education officials have consistently advocated for continued funding to support regular operations, a sentiment echoed by many legislators.
As higher education institutions adjust to their diminished financial resources, UConn plans to allocate nearly $3.7 billion this fiscal year across its main campus in Storrs, regional campuses, and the Farmington health center. Meanwhile, CSCU, which encompasses four regional universities, 12 community colleges, and the online Charter Oak State College, has a budget of $1.2 billion. Together, these spending plans represent almost one-fifth of Connecticut’s overall state budget.
Collibee emphasized that although there are currently no plans to reduce funding for higher education, the administration may reconsider this stance if spending or revenue trends necessitate actions later in the fiscal year.
This past fiscal year, higher education was initially exempted from contributing to a $209 million efficiency savings target. However, after the General Assembly mandated an additional $40 million increase in special education grants for K-12 districts, the administration reversed its decision and imposed budget cuts across various state agencies, including higher education.
With the reduction of ARPA funds, higher education officials are already taking steps to adapt. The CSCU system, for instance, has announced plans to utilize $162 million from its reserves to support operational budgets and mitigate program cuts. UConn is also exploring the use of its reserves, which could total approximately $38 million for its main and regional campuses and an additional $62 million for the health center.
Both Rep. Haddad and Sen. Derek Slap, the other co-chair of the higher education committee, have previously urged higher education institutions to reduce their reserves. Slap commended Lamont for refraining from imposing further funding cuts at this time, recognizing the potential challenges ahead due to impending federal spending cuts that could significantly impact research grants and other support for higher education.
As Connecticut navigates its budgetary landscape, public colleges and universities will continue to face challenges while striving to maintain essential services and affordability for students.
