Higher‑education increase reduced; institutions told to expect smaller share of previously planned boost

State budget staff told the Joint Budget Committee on Aug. 28 that higher education will absorb a $12.7 million reduction from a previously planned increase but will still receive a net increase of roughly $22.1 million versus the prior year.

Mark Ferndino, the governor’s budget director, said the reduction represents approximately one‑third of the increase that institutions had been expecting. He said departments met with campus presidents and chief financial officers the morning of the presentation and that the administration used the formula to allocate reductions rather than selecting individual institutions for deeper cuts.

Why it matters: Many institutions set tuition and finalized budgets over the summer. Lawmakers on the JBC expressed concern that midyear reductions will be difficult for campuses to absorb because the academic year and most institutional budgets already were in place. Vice‑chair members asked how universities would navigate smaller‑than‑expected state increases now that semester budgets are set.

What officials said and next steps: Ferndino said institutions had a planned increase last year that partly funded controlled‑maintenance and other projects. The administration told the committee it will unpause some controlled maintenance projects through the state architect process. Ferndino also said the administration would provide a more detailed line‑by‑line schedule “closer to the March timeline” showing which departments and programs carry reductions so the JBC can include them in supplemental or next‑year budget packages.

Legislators’ concerns: Committee members noted the timing—classes and tuition decisions were made—and asked the administration to work with institutions and governing boards about how to implement reductions without disrupting enrolled students. Ferndino said the administration had spoken with presidents and CFOs earlier that day and would continue engagement; statute that the staff reviewed requires communication with governing boards before the cuts go into effect.

Ending: Officials said more detailed materials will be provided to the JBC and that the committee can revisit higher‑education funding choices in the regular session and February budget process.