For Immediate Release
Contact: Matt Cookson, 603-862-0904 or Matt.cookson@usnh.edu

USNH Presents Budget Proposal to Senate Finance Committee

April 27, 2005 - Concord - University System of New Hampshire (USNH) officials talked about the shared responsibility between the system and the State of New Hampshire as they presented their proposed budget for the FY06-07 biennium to members of the Senate Finance Committee on April 27, 2005.  Vice Chair of the USNH Board of Trustees Ed Dupont, USNH Chancellor Stephen Reno, and USNH Vice Chancellor for Finance Ed MacKay, addressed the committee and took questions during the public hearing.

University System officials are requesting a total of $188.7 million in general funds over the biennium - a 6.5 percent increase in 2005-06 and a 7 percent increase in 2006-07. The Governor's budget request called for $180.7 million for USNH over the biennium (an $8 million reduction), and the budget approved by the House on April 20 reduced the USNH request by an additional $2 million.  

"As noted by Trustee Dupont, this modest USNH proposal comes as a result of a rigorous process that does not simply ask the state to fund all our needs," Vice Chancellor MacKay said.  "The USNH is actively and successfully engaged in strategies that mitigate this need, and has struggled with many of the factors challenging higher education institutions across the country."

The budget request asks the State fund 24.1 percent of the operating costs of the University System during the FY06-07 biennium, which is equal to the present level of support in terms of the percent share that is provided from the State. If the full amount for USNH was appropriated by the Legislature, USNH would hold annual tuition increases to 5% over the biennium.  

The significant drivers of the budget request are the need to:

1. maintain affordability of USNH tuition and provide adequate financial aid;
2. provide additional access for New Hampshire students;
3. continue to invest in proper operation and maintenance of USNH facilities;
4. address sharp increases in the costs of medical benefits; and
5. provide fair compensation to USNH employees.

The House-passed version of the budget is $10 million lower than the USNH budget request. Vice Chancellor MacKay addressed USNH concerns regarding a reduction in funding and its impact on tuition in his testimony.  

"The Board of Trustees is committed to not simply pass on any shortfall in State Appropriations to New Hampshire students, and would again review expenses and if necessary, may forego some portion of the proposed increase for R&R, as one example," MacKay said.   "But the reality is that the major expense drivers are unavoidable if the USNH wishes to maintain the quality and scope of programs. Thus some additional increase in tuition is highly likely, but given the Governor's level of recommended funding, would add less than two percent per year and therefore total less than seven percent per year."

About the University System of New Hampshire :

The mission of the University System of New Hampshire (USNH) is to serve the higher educational needs of the people of New Hampshire.  Through its sister institutions ( University of New Hampshire , Plymouth State University, Keene State College, and College for Lifelong Learning), USNH presently serves almost 30,000 students.

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