Budget-balancing plan would kill full scholarships

Phoenix - Needy students at Arizona's three public universities might be forced to pay more under a plan to help balance the state budget.

The proposal Wednesday by Rep. John Kavanagh, R-Fountain Hills, would require universities to charge students at least 40 percent of what it costs to attend the schools. Now, some students can get full-ride scholarships - including room and board - while others get a major percentage of their tab picked up.

Kavanagh said the current policy essentially amounts to those without a college degree subsidizing the education of those who will get one.

"Even in good economic times, I think it's fair that people who statistically are going to make more than $1 million (more) than non-college graduates at least pay for a small part of an already very reasonable tuition rate,'' he said.

At the very least, Kavanagh wants the policy to apply to just tuition which for Arizona residents runs about $5,000. "Two thousand a year is a nominal amount for people who are going to be walking away with college degrees,'' he said.

And Kavanagh said if students actually have to put up their own cash they will "respect the courses more.''

But Kavanagh's plan has a more immediate goal. Requiring students to pay more of the cost of their education would decrease the amount of money universities use to provide scholarships. And that, in turn, could reduce the cash they need from the state.

"I think, all around, it's good for the students and good for the taxpayers," he said.

Kavanagh, however, would not apply his policy to those who get financial aid based on academic excellence or athletic scholarships.

The presidents of the three universities all promised Wednesday to get Kavanagh some specifics of exactly how much cash that change would generate and how many students would be affected.

None opposed the plan outright.

But Sen. Carolyn Allen, R-Scottsdale, said Kavanagh is off base in complaining about subsidizing university education.

"As a little girl from a small town with a GED (general equivalency high school diploma) hanging on her wall, I have no problem paying for other people to get an education because I appreciate more than anybody, probably ... how important it is to have an education,'' she said. "And everybody that gets a college education and a university degree ain't gonna make a million dollars in a lifetime."

And Rep. David Schapira, D-Tempe, called it "unwise for us to pay for the state's budget deficit by asking those who can least afford to attend our state universities to pay for it.''

But Rep. Russell Pearce, R-Mesa, who chairs the House Appropriations Committee, said Kavanagh's plan deserves consideration because it requires a "fair contribution" from students.

University of Arizona President Robert Shelton said some students get full need-based scholarships. But he said the current system used by the school considers the ability of the student or family to pay, with some contribution by them "in almost every case.''

The proposal came as the presidents told members of the House and Senate Appropriations committees of the hardships they would face under a plan to cut state funds to each by 10 percent. That translates to nearly $50 million for Arizona State University, more than $44 million for the University of Arizona and $16 million at Northern Arizona University.

Overall, the proposal by Pearce and Sen. Bob Burns, R-Peoria, his Senate counterpart, would immediately cut spending by more than $630 million to balance what they say is a $970 million deficit.

Shelton all but told lawmakers it can't be done. He said the new semester begins next week. And cancelling classes - the major cost of running the university - would deny many the courses they need, meaning they could not graduate in four years.

"Frankly, I have no solution at the moment,'' he said.

Michael Crow, his counterpart at ASU, said the only way he could find that kind of cash immediately would be to sell off some vacant land his school owns. But he said dumping that property to avoid cutting expenses is a one-time solution.

Crow noted the plan by Burns and Pearce would not restore the cuts next budget year. He said that could mean capping enrollment or even closing entire colleges within the university.

And NAU's John Haeger said the cut the lawmakers want him to absorb is the equivalent of wiping out his school's education and business schools.

Haeger also questioned how much spending he legally could cut. For example, he said NAU has a contract with Yuma Regional Medical Center for its new program to turn out nurses with baccalaureate degrees. "The university will not break that contract,'' Haeger said.

But Burns said the state's budget crunch means everyone has to sacrifice.

"If I'm in a business and I find out in January that I'm losing money, I start making cuts right now,'' he said. "I've got to do it, period, or I don't survive.''