A new board examining the financial health and sustainability of Connecticut’s public higher education institutions and UConn Health held its first meeting, Aug. 27.
Bringing together key lawmakers and the Office of Policy and Management Secretary (OPM) Secretary Jeffrey Beckham, the Higher Education Financial Sustainability Advisory Board’s creation comes at a time when the state’s colleges and universities are under increasing financial strain, with continual pressure to raise tuition and annual pleas for more state funding. The Board was established during the final days of the 2024 legislative session with little public explanation or input provided.
Yet the board has been endowed with several powers aimed at addressing these financial challenges. It will meet with the institution’s administrators to review financial and other related reports. According to the bill meetings will focus on “barriers to meeting state workforce needs, developing economic growth, and achieving or maintaining affordable tuition.”
The bill that established the board also outlined specific reporting requirements for each entity.
At the request of the Board’s chairpersons, these institutions must submit detailed financial reports for the current fiscal year, the subsequent fiscal year, and the five preceding fiscal years. These reports must include information on each revenue source and expense category, along with any assumptions on which the reports are based. If a financial report projects a deficiency for the current or subsequent year, the institution is required to provide a detailed plan to eliminate the shortfall.
Further reporting requirements include a summary and general ledger account code analysis of the institution’s unrestricted net position for the most recently completed fiscal year. Institutions must also report the number of full- and part-time enrolled students, disaggregated by in-state and out-of-state status along with vacant and filled employment positions with corresponding average salaries will be supplied to the Board.
In addition, institutions are required to submit summaries of their cost drivers and budget constraints that affect workforce developments, economic development efforts, student quality of life — including the time required for degree completion — research productivity, and faculty retention and recruitment.
Members of the board, recognizing the importance of the state’s colleges and universities, are taking their roles very seriously.
Speaking on behalf of Gov. Ned Lamont, Beckham stated, “Governor Lamont agreed with the legislative leaders last session that a board like this might be useful to have continued the conversation we’ve been having the last several years about sustainability of our higher education systems and their financial position.” He expressed his appreciation for the opportunity to engage in this work, saying, “I’m happy to be here, and it’s always a privilege to be able to do this work, and I try not to take that for granted.”
Beckham reminded the board that state support is just one of several revenue sources for higher education institutions, which also have other “tools at their disposal to control their budgets and to sustain themselves,” he explained.
But there are numerous challenges ahead, driven by “a lot of changes in our country demographically,” making the higher education market in the United States “different than it was just a few years ago,” Beckham stated.
He also noted that the state is “moving into a transitional period with regard to state support or public support,” referring to the federal COVID-19 handouts that had temporarily bolstered the state’s higher education budget.
“Those were one-time revenues that are more or less obligated now, and they are more or less in the past,” said Beckham, “No one would be happier than me if the federal government, after the outcome of this fall’s election, decides next year to send more money to the States. But I’m not expecting that, and I don’t think that’s what we ought to assume.”
The Board’s Co-Chair Rep. Toni Walker (D-New Haven) confirmed that the “enormous” list of requested information in the bill was submitted in July but its “only a foundation” and “there are several other areas that we know we need to expand on.”
Meanwhile, Co-Chair Sen. Cathy Osten (D-Sprague) pointed to the state’s community colleges as particularly vulnerable emphasizing that they provide accessible education to a diverse population, including non-traditional students and are often the first to feel the impact of budget cuts.
Rep. Tammy Nuccio (R-Tolland) raised several suggestions for the Board to consider, urging a closer examination of the allocation of teaching resources and the effectiveness of degree programs. During the first meeting, she asked, “How many classes are taught by tenured professors and how many are taught by adjuncts,” in order to compare results among the various education institutions. With that, she also called for a cost-benefit analysis of the many degree programs offered, emphasizing the need to assess how many students are enrolled and graduating in each field.
Furthermore, she didn’t hesitate discussing the controversial topic of athletics funding, calling for a detailed review of sports program costs compared to their financial returns and questioning whether these programs are self-sustaining.
In addition, the board is requesting reports on the capital needs of these colleges, especially those that are experiencing physical infrastructure challenges. For example, they inquired about the status of campus facilities, which, in some cases, are reportedly deteriorating. Rep. Greg Haddad (D-Mansfield) highlighted a collapsing ceiling at Western Connecticut State University (WCSU) and the presence of snakes in classrooms at Tunxis Community College. These concerns are not just about aesthetics but also about safety and the ability to attract and retain students in such environments.
The Board also seeks clarity on how pension liabilities are affecting tuition rates. They have asked the schools to provide data on whether unfunded pension obligations have been shifted onto students, potentially driving up tuition costs. It is worth noting that in 2022 Connecticut pension debt cost UConn students $1,000 in terms of tuition and fees that they pay.
The next meeting, set for Monday, Sept. 9, will be a pivotal moment for the board. It’s a chance to go beyond the initial questions and start developing real, practical solutions. But the real test will be whether the board is ready to make the hard choices needed to reshape Connecticut’s higher education system. Will they push for meaningful change, or will they fall into the same bureaucratic traps that have stalled other reform efforts?
