What Does Criticism of Free College Tuition in Oregon & NY Mean for RI?
GoLocalProv News Team and Kate Nagle
What Does Criticism of Free College Tuition in Oregon & NY Mean for RI?
“Critics blast Cuomo’s free-college tuition plan as a ‘sham,” wrote Aaron Short for the New York Post on February 5.
“Promise too costly?” posed Ashley Smith for Inside Higher Ed on Monday, of Oregon's free community college tuition program.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTConcerns raised in New York Governor Andrew Cuomo’s $163 million proposal range from the fiscal (given New York, like Rhode Island, recently increased tuition and fees at state colleges) to practical (the prospect of hurting private colleges).
In Oregon, where a free community college program currently exists, and has the same “last dollar” model proposed in Rhode Island, a report found that students from higher income families were disproportionately benefiting from the program (and enrollment numbers show that high school graduates enrolled in the state’s public universities has declined slightly during the time of the program, which unlike Rhode Island, is only open to the community colleges).
Different Models, Different Concerns
In January, Raimondo touted her proposal to provide two years of free college tuition at one of the state’s three public colleges, which would cost the state $10 million in the upcoming fiscal year to start implementation, to $30 million once fully phased in by 2021.
“Tonight I say that we stand together and expand our Rhode Island Promise. That we ensure every young person in our state has an opportunity to compete for the good-paying jobs that we’re creating,” said Raimondo. “Today, I say that we take charge of our future.”
Raimondo’s proposal was met immediately with pushback from Republicans.
"This new ‘free’ program seems designed to grab headlines without being well thought out," said Rhode Island House Minority Leader Patricia Morgan. "To be sure seeking to make college more affordable is a laudable goal, but this new and expensive proposal is being made against a backdrop of our K-12 public schools struggling to graduate children with the knowledge and skills that are needed to benefit from higher education.”
Bronx Democratic Assemblyman Jeffrey Dinowitz said the Cuomo plan hurts private colleges that compete with CUNY and SUNY for pupils. “Some people would be drawn away from those [private] institutions,” he said.
“[Cuomo] wants these scholarships for the middle class and in the same bill he’s allowing universities to increase tuition,” said Assemblyman Charles Barron. “I feel it’s disingenuous and hypocritical.”
Meanwhile Inside Higher Ed’s Smith wrote of Oregon this week that the focus on community colleges was hurting four year schools
Portland State University officials can’t directly attribute all of their decrease in new freshman resident applications to the Promise, but they’re certain the program played some role in the drop. The university saw a 9 percent decrease in first-year, in-state resident students from this year compared to last year and a 14-percent decrease in new freshman residents who were admitted to the institution.
“In the application pool we saw a decrease in resident applicants this past fall, and we think it's attributable to Oregon Promise,” said Shannon Carr, executive director of undergraduate admissions at Portland State University. “The information about Oregon Promise was sent out, and it wasn’t really clear in terms of how many students were receiving it … how far that money would go …. Counselors were really advising students to start at a community college instead of a four-year institution. We saw that conversation happening from the guidance counseling community, and that had an impact on overall applications.”
Questions to Governor Raimondo's office about the concerns raised in Oregon and New York were not responded to under deadline on Monday.
SLIDES: Winners and Losers in Raimondo's FY18 Budget Proposal
Winners and Losers in Raimondo's FY18 Budget Proposal
Winner
Criminal Justice Reform
Per recommendations from the Justice Reinvestment Working Group, the Governor is proposing nearly $1 million in investments such as the public defender mental health program ($185,000), improved mental health services at the ACI ($410,000), recovery housing ($200,000) and domestic violence intervention, in her FY18 budget.
Winner
English Language Learners
Under the heading of “promoting 3rd grade reading,” Raimondo proposed adding $2.5 million to make English Language Learning (ELL) K-12 funding permanent. The Governor’s office points out that RI is one of four states that doesn’t have permanent funding.
The suggestion was one made by the Funding Formula Working Group in January 2016, who said that “in the event that Rhode Island chooses to make an additional investment in ELLs, the funding should be calculated to be responsive to the number of ELLs in the system and based on reliable data, and include reasonable restrictions to ensure that the money is used to benefit ELLs — and promote the appropriate exiting of ELL students from services.”
Winner
Car Owners - and Drivers
Governor Raimondo wants to reduce assessed motor vehicle values by 30% - a change that would reduce total car tax bills by about $58 million in calendar year 2018. Speaker of the House Nicholas Mattiello, however, has indicated that he might want to go further in its repeal.
In her budget proposal, Raimondo also put forth adding 8 staffers to the the Department of Motor Vehicles to "address wait times."
Winner
T.F. Green
The “Air Services Development Fund” would get an influx of $500,000 to “provide incentives to airlines interested in launching new routes or increasing service to T.F. Green Airport.” The Commerce Corporation set the criteria at the end of 2016 for how to grant money through the new (at the time $1.5 million fund).
Also getting a shot in the arm is the I-195 development fund, which would receive $10.1 million from debt-service savings to “resupply” the Fund to “catalyze development & attract anchor employers.”
Tie
Minimum Wage Increase
An increase in the state minimum wage is part of Raimondo’s proposal, which would see it go from $9.60 an hour to $10.50 an hour. Raimondo was unsuccessful in her effort in 2016 to bring it up to $10.10 — it was June 2015 that she signed legislation into law that last raised Rhode Island’s minimum wage, from $9 to 9.60.
The state's minimum hourly wage has gone up from $6.75 in January 2004 to $7.75 in 2013, $8 in 2014, and $9 on Jan. 1, 2015. Business groups such as the National Federation of Independent Business however have historically been against such measures, citing a hamper on job creation.
Tie
Cigarette Tax
Like the minimum wage, Raimondo is looking for an increase - in this instance, the cigarette tax, and revenue to state coffers. Raimondo was unsuccessful in her effort to go from a tax of $3.75 to $4 last year. Now she is looking for an increase to $4.25 per pack, which the administration says would equate to $8.7 million in general revenue — and go in part towards outdoor recreation and smoking cessation programs.
The National Federation of Independent Business and other trade groups have historically been against such an increase, saying it will hurt small businesses - i.e. convenience stores. And clearly, if you’re a smoker, you’re likely to place this squarely in the loser category instead.
Loser
Hospitals
As often happens in the state budget, winner one year, loser the next. As GoLocal reported in 2016, “the Rhode Island Hospital Association immediately lauded the budget following its introduction, and addressed that while it is facing some reductions, that it "applauds" this years budget after landing on the "loser" list last year.”
This year, it falls back on the loser list, with a Medicaid rate freeze to hospitals, nursing homes, providers, and payers — at FY 2017 levels, with a 1% rate cut come January 1, 2018.
Loser
Online Shoppers
The taxman cometh — maybe. Raimondo proposed an “Internet Sales Tax Initiative” — which would purportedly equate to $34.7 million in revenues.
"Online sales and the fact that online sellers do not collect sales tax has created a structural problem for Rhode Island's budget — our sales taxes have been flat," said Director of Administration Michael DiBiase, of the tax that Amazon collects in 33 states, but not Rhode Island. "We think mostly due to online sales, we’re able to capture the growth. The revenue number is $35 million dollars — it improves our structural deficit problem. It’s an important fiscal development."
Loser
Long Term Care Funding
The Governor’s proposal recommends “redesigning the nature” of the State’s Integrated Care Initiative, by transferring long-term stay nursing home members from Neighborhood Health to Medicaid Fee-for-Service and repurposing a portion of the anticipated savings (from reduced administrative payments to Neighborhood Health) for “enhanced services in the community.” “The investments in home- and community-based care will help achieve the goal of rebalancing the long-term care system," states the Administration.
Cutting that program is tagged at saving $12.2 million; cuts and “restructuring” at Health and Human Services is slated to save $46.3 million.
