Statement on FY 2024 Budget Conference Committee Report
As a research and policy center dedicated to restoring the promise of higher education as an engine of upward mobility, the Hildreth Institute commends the conference committee for their FY 2024 conference report. We are particularly excited for their thoughtful investments aimed at removing barriers to higher education and bolstering support for our public institutions.
The conference report has allocated $1 billion in spending derived from income surtax revenue collections, dividing these investments evenly between the education and transportation sectors. Approximately 52 percent ($524 million) is allocated to education, of which $229 million is specifically designated for higher education.
Our latest report highlighted the enduring issue of insufficient investment and diminishing purchasing power of state student financial aid. However, in this budget, the allocation of an unprecedented level of funding for higher education, paired with a significant focus on student financial aid, demonstrates the dedication that the Legislature and conference committee members' have in addressing long-standing issues. It also highlights their commitment to making substantial investments in need-based financial aid programs.
Aside from the State Financial Aid Line Item (7070-0065), which received a comparable allocation to FY2023 at $175,650,000, we are especially appreciative of the introduction of several new need-based programs, including:
Additional Student Financial Aid (1596-2414): $84,000,000. New financial assistance to Massachusetts students enrolled in and pursuing a program of higher education in any public institution of higher education;
MassReconnect (1596-2418): $20,000,000. Last-dollar tuition-free community college for individuals aged 25 years and older, covering the remaining cost not already paid by other sources of financial aid;
Nursing Tuition-Free Community College (1596-2433): $18,000,000. Last-dollar tuition-free support for nursing students at community colleges;
Endowment Match Funding (1596-2425): $10,000,000 for Community Colleges and State Universities and (1596-2426) $10,000,000 for University of Massachusetts system. The endowment match program has demonstrated a strong history of effectively leveraging private donations for public higher education institutions, allowing them to expand their endowments and providing vital support for scholarships, endowed chairs, and other affordability programs.
Furthermore, the conference report incorporates $12,000,000 in ramp-up funding (1596-2432) designated for community colleges. This funding will assist these institutions in laying the groundwork for an expansion of the tuition-free program, signifying a forthcoming increase in affordability initiatives for residents.
While we applaud the intention behind the New High-Demand Scholarship (1596-2423: $25,000,000), which aims to support individuals pursuing in-demand professions, we have concerns about the strict eligibility requirements and post-graduation work commitment that carry punitive consequences. Research on similar existing programs indicates that such stringent criteria can have unintended consequences and result in equity implications for students. Additionally, the administrative complexities and potential burden of monitoring these requirements need to be carefully considered. We recommend a reevaluation of the eligibility and work commitment criteria to ensure a fair and effective approach without creating unnecessary barriers for students.
We are particularly thrilled to see the inclusion of tuition equity provisions in the conference report. These provisions guarantee access to in-state tuition, fees, and financial aid for undocumented high school students at Massachusetts public higher education institutions. Measures that grant access to higher education for undocumented students are not only an investment in the state's economic prosperity, but also a significant step towards fostering a more inclusive and equitable higher education system.
As we move forward, we are encouraged by the Legislature’s focus on promoting affordability and inclusivity in higher education, ensuring that all individuals have access to the transformative opportunities it offers.
About the Hildreth Institute
The Hildreth Institute is a research and policy center dedicated to restoring the promise of higher education as an engine of upward mobility for all. We are committed to fixing the broken college financing system by promoting innovative policy solutions at the federal and state levels, in order to invest in higher education while eliminating the burden of student debt. We research, develop, and promote solutions for changes in public policies and institutional financial practices that will reduce costs to students and improve quality. Learn more at hildrethinstitute.org.