The Arizona Board of Regents' approval of an $801.7 million operating budget for fiscal year 2013 Thursday marked the beginning of a five-year plan to phase out disparity of per-student funding among ASU, NAU and UA.
While ASU’s portion of the operating budget total — $347.5 million — tops proposals from UA and NAU, the University receives the least amount of per student funding among the three state schools.
The 2013 budget has funding increasing by $896 per ASU student — the first step toward matching UA’s per-student funding. UA currently receives the most per-student funding among the three state universities.
At the end of the five-year plan, per-student funding will be equal among ASU, NAU and UA.
“The purpose of this (request) was to equalize student funding across the universities so we are funding each student at the same level regardless of where they’re attending school,” said Glen Nelson, ABOR senior vice president for finance and administration.
The operating budget request was approved nine-to-one with Regent Dennis DeConcini opposing. The total budget is a 17.5 percent increase from the 2012 operating budget.
It will be submitted to Gov. Jan Brewer and the Legislature by Oct. 1.
According to a press release, the 2013 budget request includes $36.1 million in permanent additions to the university system’s base funding.
“We are going to use this year to continue to work with the Legislature and the governor’s office to develop the performance-funding model to have that in place for the following fiscal year (of 2014),” said Katie Paquet, ABOR associate vice president for public affairs.
The approval of the fiscal year 2013 budget was one of many items on an agenda at ABOR’s Flagstaff meeting that included discussion of plans to switch from an enrollment-based funding system to a performance-based system.
“There is a fundamental shift in our way of thinking from that of funding inputs to funding outputs,” Nelson said, referring to the changing in funding from number of students enrolled in a university to the actual performance of a university.
The board recognized that the state is not yet out of the recession. While the budget for the university system is increasing, it represents just a fraction of the true needs of the universities, ABOR chair Fred DuVal said.
“We recognize that the state has a number of variables to consider with the projected $300 million increase in state general funds and would urge that higher education be considered among the highest priorities given our connection to workforce development, job creation and overall statewide economic impact,” DuVal said.
USG Downtown President Joseph Grossman spoke to the board before the vote about the importance of funding equality throughout the Arizona universities.
“Equality will bolster quality,” Grossman said. “Solving the issue of disparity will increase the value of every individual’s degree and education throughout the state.”
Reach the reporter at kmmandev@asu.edu
Click here to subscribe to the daily State Press newsletter.
