CUNY urges council to use PEG restorations to rebuild faculty, campus repairs and student services

Felix Matos Rodriguez, chancellor of the City University of New York, told the New York City Council on May 1 that the executive FY26 plan proposes $1.48 billion for CUNY and baselines a major portion of prior PEG cuts while adding one‑time operating support and capital dollars.

The move “baselining the full PEG restoration” gives CUNY “an opportunity to thoughtfully develop a long term plan to rebuild what was lost,” Matos Rodriguez said. He asked the council to back additional priorities, including expanded CUNY Reconnect outreach, application fee waivers, food insecurity aid, mental health services and a metro‑card pilot.

Why it matters: CUNY is the largest public higher‑education system in the city and a primary pathway to upward mobility. Administrators and union representatives told the council the PEG cuts and subsequent vacancies have reduced capacity for advising, financial aid counseling and classroom instruction and have left major deferred maintenance needs across campuses.

Key budget details and program impacts

- System budget: The mayor’s executive plan proposes $1.48 billion for CUNY in FY26, the chancellor said. The FY26 executive amount represents an increase from earlier FY25 allocations, largely tied to PEG restorations and collective bargaining funding.

- PEG restorations: Council members noted a FY26 baseline PEG restoration of roughly $95.5 million for CUNY, much of it allocated to personal services. Matos Rodriguez called the peg restorations “critical” and thanked the council for support.

- Vacancies and staffing: CUNY said it has hundreds of vacancies after prior reductions. CUNY’s chief financial officer reported community college headcount and vacancy snapshots: out of a total headcount at community colleges of about 10,291, officials said there were roughly 90 pedagogical vacancies and 276 non‑pedagogical vacancies (data provided to the committee by CUNY finance staff). The administration said restoration dollars will be triaged in consultation with college presidents and by looking at enrollment trends and campus fiscal health.

- Student enrollment and tuition adjustment: Provost Alicia Alvaro told the committee enrollment snapshots show growth: senior college enrollment up about 4 percent year‑over‑year and community college enrollment up about 16 percent in the same point‑in‑time comparison. The executive plan also contains a technical tuition adjustment line that reduced FY25 tuition‑related revenue by $50 million (a carryover from earlier adjustments) and CUNY said it hopes upticks in enrollment will reduce future technical adjustments.

- Priority programs: The executive budget restores funds for long‑standing council priorities including ASAP and ACE. Matos Rodriguez highlighted CUNY Reconnect’s expansion and requested sustained funding for Reconnect, application fee waivers, food security and disability services such as CUNY LEADS and CUNY Unlimited.

- Capital and state of good repair: The chancellor asked for city and state capital support. The executive capital plan cited $1.57 billion in city funding over the ten‑year plan and CUNY requested a $150 million allocation for the Allstate Health and Natural Science Building and about $200 million targeted to reduce the system’s backlog of state‑of‑good‑repair projects. CUNY told the committee it has completed 73 capital projects in the past year and said the system’s state‑of‑good‑repair percentage has risen from about 24 percent to 27 percent with the targeted approach.

Councilroom exchanges and follow‑ups

Council members pressed CUNY on how restorations will be prioritized across campuses, how one‑time funds (for example a $15 million community college one‑time allocation) should be used, and what the restoration means for recurring staffing needs. CUNY officials said they will caution campuses about using one‑time funds for ongoing personal‑service commitments and that college presidents will be consulted in staffing decisions.

Officials also discussed college pathways to high school students, ASAP part‑time pilots, dorm capacity and childcare. CUNY said systemwide dorm capacity is roughly 2,858 beds and reported plans to add approximately 1,172 beds over five years as part of broader affordability and access efforts.

What comes next

CUNY provided written testimony for the record and committee members asked for follow‑up data: fuller vacancy breakdowns by campus, final enrollment projections for fall, and line‑item detail on how one‑time campus operating funds will be allocated. The council will consider the executive plan and hearings record as it negotiates the adopted budget.

Direct quotes (from hearing):

"By baselining the full PEG restoration, we have an opportunity to thoughtfully develop a long term plan to rebuild what was lost," Felix Matos Rodriguez, chancellor of the City University of New York.

"We will be taking some of those lessons to work with the colleges in the staffing," Alicia Alvaro, interim university provost, on prioritizing restorations across campuses.

Ending: The council’s budget process now moves from hearings to negotiations; CUNY leaders asked members to protect baselined restorations and to fund student‑facing pilots and targeted capital projects to shore up safety, accessibility and student success across the system.