Due to an unexpected revenue shortfall, the state of Virginia now needs an additional $881 million in budget cuts. Despite previous indications that higher education would be spared across-the-board cuts, it is now clear that the budget cuts announced earlier for state agencies will apply to all institutions of higher education in Virginia, though state funding for student financial aid will remain. The University likely faces a five percent cut in state funding in the next fiscal year and a seven percent cut the year after. For the moment, the impact of these cuts remains unclear as the University considers its options.
Subject to a minimum of two additional years of crippling budget cuts, public higher education faces a distressing future. Though there is a general consensus among political and business leaders on the necessity of improving the state’s education system, the state governance of education has been characterized by a distinct lack of consistency.
Within the past few years alone, the state government has observed the emergence of radical new measures for the financing of public education. Driven by turbulent economic conditions, these changes have generated what appears to be a crisis of leadership in state government. In such a challenging and frequently developing environment, states have struggled to articulate a new vision for public education, one that not only respects its importance but also seeks to preserve its integrity through protective economic policies. In the face of economic difficulty and with insufficient time to develop a long-term vision for education, states have slashed appropriations to public colleges at a record pace. Next year, the University is projected to receive below 5.8 percent of its total revenue from state appropriations, the lowest percentage since 1992.
Despite this consistent cutback in funding, the state administration remains an outspoken advocate of higher education. Indeed, since his campaign Governor McAuliffe has articulated a strong vision for the role of the state in promoting education. He has rightly recognized that the influence and leadership unique to the governor’s office places him in a position to promulgate an ideal vision for public education. Indeed, producing an educated citizenry is arguably a state’s — and therefore a governor’s — most serious public obligation.
Though the administration’s rhetoric indicates staunch support for higher education, the state budget fails to adequately reflect that position. Admittedly, the governor’s influence over state policy that reflects his priorities is relatively limited, as the General Assembly possesses the final say on budget measures. At such a critical juncture, however, it seems that more could have been done to include important safeguards for higher education. Moreover, the earlier suggestions given by the administration that higher education would be spared from state budget cuts seem to have been misleading at best.
Across-the-board budget cuts will now apply to all public colleges in the state. Given the gravity of the state’s obligation to produce an educated citizenry, it should seek to preserve its vision for higher education in times of hardship. Making university education a higher priority during budget negotiations would be a significant step in recognizing the economic importance of public education and the state’s role as its steward.
Admittedly, exempting higher education from state budget cuts may not be economically feasible. For one, the added impact that such a policy would exact on state employees and other agencies would be considerable. The core problem with across-the-board budget cuts, however, is that they fail to recognize that all state programs or agencies are not of equal value; education is critically important. Furthermore, to make progress in renewing state investment in higher education, the state must consider options for new sources of revenue. Last year in Minnesota, lawmakers used a combination of tax reforms, including the creation of a new tax bracket, to prevent considerable budget cuts and re-invest substantial resources in higher education. Continued inaction on Medicaid expansion also prevents the state from receiving an ample amount of federal tax dollars which would free state funds that could be used for education. Though the method of generating income is a politically contentious topic, procuring the revenue is clearly not impossible.
Education is arguably the most salient domestic policy issue of our time. In an increasingly competitive economy that is now based essentially on knowledge, a college education is a critical gateway to future opportunity; it is a necessary prerequisite for having meaningful career prospects and social mobility. Given this outlook, the state should make a more concerted effort to explore new revenue streams. If the state administration wishes to promulgate a message that stresses higher education’s critical contribution to the state’s prosperity, it should urge the legislature to explore new methods of generating revenue.
Conor Kelly is an Opinion Columnist for The Cavalier Daily. He can be reached at c.kelly@cavalierdaily.com.
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