Rohan Gupta
Although most media networks have stated how ubiquitous the economic downturn has become since last year, they have failed to discuss how deleteriously the slump has effected state fiscal budgets; specifically concerning state universities. The most obvious effects of this deficit on state universities have been the soaring prices of tuition and an increase in overall college costs, but what state shortfalls could have caused this to happen?
At least 48 states have addressed or still face shortfalls in their budgets for fiscal year 2010 totaling $168 billion or 24% of state budgets. The state of Georgia is currently under by $900 million in its budget. The economic slowdown has reduced local and state tax revenues at the same time that public services such as state universities need them the most. And at the same time, state revenues have failed to keep up with inflation. Majority of state universities rely on the Pell Grant for financial aid but can no longer reap in the helpful benefits that were available a few years ago. The grant that covered a significant amount of tuition for low income students suffered a $2 billion shortfall this year. Congress' postponement of appropriations for the grant has caused this shortage in capital. President Obama has recently said to put funding for education as his first priority but all we Americans can do is watch and see how true he is to his word.
Apart from emptying students' pockets, the fiscal crisis has also began to empty the pockets of educators. Professors and teachers have been forced to take pay cuts and furlough days that make these individuals unable to perform their jobs and remain at home. Educators who were once thought to be exempt from these measures are now experiencing the full blow of today's hardships.
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