TRENTON-Infusions of money-and will-are needed for New Jersey to live up to the vision of a generation ago, that of a state committed to putting a college education within its citizens' reach. In a retreat from that vision, the share of public higher education costs paid by the state has dropped almost every year since 1988, forcing students and families to pay more, and threatening the ability of growing numbers of residents to afford college.

Those are major findings from New Jersey Policy Perspective's report, Flunking Out: New Jersey's Support for Higher Education Falls Short. The report was written by Anastasia R. Mann and NJPP Research Director Mary E. Forsberg.

The report was released at a State House press conference, where NJPP President Jon Shure said, "One way or another, the people of a state pay for public higher education in that state. The question is how much of the burden should be shared by everyone, because higher education is a demonstrable public good, and how much of it should be borne by those attending college at the moment. Today in New Jersey, the equation borders on perverse. If we believe a college education should be available to everyone who is willing and able to do the work, this is too high a barrier to accept."

The report shows that from 1983 to 2006, the share of the state budget going to higher education sank from almost 10% of all state spending to just over 5%. In 1990, across all sectors of public higher education in New Jersey, the state contributed 48% of college budgets; in 2004 it was 19%.

And from 1990-91 to 2004-05, tuition and fees at New Jersey public four-year colleges roughly tripled: from $2,654 to $7,879 a year.

The report compares New Jersey with similar sized states and finds a big gap in the ability to meet student demand. In recent years, New Jersey's public four-year institutions have educated almost 22,000 fewer students than Virginia, 23,000 fewer than North Carolina, 29,000 fewer than Georgia and 48,000 fewer than Indiana.

Put simply, the report states, "New Jersey's public colleges and universities are running out of room." When enrollment capacity is measured on a per capita basis, New Jersey ranks 45th in the nation. New Jersey's nine state colleges and universities today must reject 75% of the residents who apply. Applications reached an all-time high in 2004, with over 42,000 for only 9,400 freshman seats. "For public institutions whose mission is to balance access and quality, high rejection rates read as much as a limitation as a distinction," the authors wrote.

While New Jersey is unusually committed to offsetting high costs with student aid, college is still unaffordable for many. Even with financial aid, the cost of attending a four-year public college in New Jersey in 2004 was 34% of the average family's income-up from 24% a decade earlier. Measured this way, only six states charge more.

As of 2003, New Jerseyans took out an average of $3,418 in student loans, exceeding the national average. Over the past year, those attending four-year institutions in the state accumulated an average of $14,832 in student debt. New Jersey's student loan default rates already exceed that of neighboring states, and recent federal policy changes will only worsen the situation. The federal Deficit Reduction Act of February 2006 will drain $12.6 billion from student loan programs over five years. It is estimated that these changes alone will drive up the average student loan burden for New Jersey families by $1,864.

The report calls on New Jersey to step up the effort to provide more funding for higher education and other public needs. "By not taking advantage of its capacity to provide adequate and predictable funding, New Jersey has compromised the efficient and effective management of its higher education institutions and the practicality of student tuition and fees."

Among funding sources that could provide greater access to higher education, the report cites:

• Retaining the Alternative Minimum Assessment from the Corporate Business Tax, slated to expire at the end of this year-up to $300 million
• Eliminating the state income tax deduction for 401(k) contributions-up to $500 million
• Shifting all state aid to county colleges to the Property Tax Relief Fund instead of the General Fund-at least $224 million
• Rolling back the state income tax cuts of the 1990s and extending the "millionaires' tax"-at least $342 million
• Extending the sales tax to various exempt services and products-$275 million
• Extending the sales tax to cover professional services-$900 million to $2.2 billion
• Extending sales tax to gasoline and diesel fuels-over $540 million

The report concludes with the observation that states-like families-should live within their means, and that "truly living within one's means involves an honest assessment of what is needed, real thought given to priorities, investing in the future-and then doing everything possible to make sure the resources are available."

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