It is easy for Fairfield University students to dismiss statewide news as pertinent information when on campus, especially since the University is a private institution. However, that isn’t always the case.
Now that Gov. Jodi Rell is allowing the state budget to take effect without issuing line-item vetoes, the overall state budget situation is something that should be of concern to not only Fairfield students, but also to the University as a whole.
Given this past summer’s state budget impasse and the current budget deficit, University students who receive financial aid through the Connecticut Capitol Scholarship Program or the Connecticut Independent College Student Grant Program may see a decrease in financial aid awarded for this upcoming academic year.
The majority of financial aid awarded to students at Fairfield comes from the federal level, according to Philip Lane, the chair of the Economics department. According to Director of Financial Aid Erin Chiaro, approximately 10 percent of the University’s student population receives financial aid from the state through either the Connecticut Capitol Scholarship Program or the Connecticut Independent College Student Grant Program. These programs are directed towards Connecticut residents.
Last year, Fairfield students who received financial aid through the Connecticut Capitol Scholarship Program were awarded on average approximately $2,400, while those students who received financial aid through the Connecticut Independent College Student Grant Program were awarded on average approximately $4,600. Due to the state budget, Lane noted that it would not be surprising if these figures were higher than the amounts awarded to students through the state programs for this academic year.
University administrative officials, in addition to students, must also take the current state budget situation seriously, especially when it comes to planning for the future. If state legislators do not come up with a plan to close the state’s budget deficit going forward, either by decreasing spending or increasing taxes, the state’s bond rating will get downgraded, according to Lane. This will ultimately lead to an increase in the state’s cost of borrowing, and will affect the University’s budgeting for future capital projects, such as new construction for academic buildings and residence halls.
“In the past, most of the capital projects that were completed on campus, such as construction on the DiMenna-Nyselius Library, the Barone Campus Center, and the Thomas J. Walsh Jr. Athletic Center, were funded through the municipal bonds facility of the state,” said Lane.
“In the future, if Fairfield University engages in other capital expenditure projects, it will likely cost the University more due to the higher interest rate resulting from the state’s downgraded bond rating,” he continued.
Given the current national economic situation, an increase in the University’s cost of borrowing might have a greater impact on the University as a whole than it normally would under good economic times.
While the overall impact of the current state budget situation in Connecticut is relatively limited at Fairfield, it does have a much larger impact on the University of Connecticut and other state colleges. Since the state of Connecticut directly funds the operating and capital budget for state colleges, these institutions have seen cut-backs in funding and have laid-off employees due to this summer’s budget impasse.
According to Lane, the University’s employee cut-backs were not the result of this summer’s state budget, rather the result of the University’s endowment and management of the institution. In the end, the current state budget situation is yet another headache for students at Fairfield who require financial aid from the state.
A significant cut in student financial aid programs from the federal level is not expected, according to Lane. Chario agreed, “Fairfield University has increased its financial aid budget by over 11 percent for the 2009-10 academic year to help accommodate the additional students applying for financial aid with demonstrated needs. Fairfield’s commitment to financial aid will remain strong and the Office of Financial Aid will be assisting our student body through the academic year.”
FUSA President Jeff Seiser ’10 said in regards to financial aid on the federal level, ‘This year I have received the same amount of financial aid from the federal government that I received last year.”
When discussing the future of financial aid awarded from both the state government and the federal government, Seiser said, “It is very important that the amount of financial aid awarded to Fairfield University students stays the same, given that Fairfield is a tuition-driven institution.”
He added, “If the amount of financial aid provided by the state government and/or the federal government to Fairfield students was ever decreased, then Fairfield would need to decide whether to allocate more funds to financial aid.”
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