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Congress Approves Aid for States Struggling with Budget Cuts

August 11, 2010

by Scholarships.com Staff

You’ve read all about how colleges have been coping with budget cuts over the last year or so. Wait lists. Hiring freezes and holds on infrastructure improvements. Short weeks.

Yesterday, the U.S. House of Representatives passed a bill they hope will allow administrators at those institutions of higher education to breathe a little easier. The $26 billion they approved will go toward those same state budgets that have suffered in the economic crisis; while the funding isn’t specifically earmarked for state colleges, any funding the states receive at this point will allow those schools to avoid further cuts in an already-hurting higher education system. About $16 billion of that total will go toward Medicaid assistance.

According to an article in The Chronicle of Higher Education, more than half of the country’s state lawmakers have been counting on varying amounts of emergency federal aid from Congress. While the expected totals aren’t as much as many had hoped—Maine had budgeted for $100 million, but will receive $77 million; Pennsylvania had budgeted for $850 million, but will receive about $600 million—the funding will help public university systems avoid further cuts. In Maine, administrators were preparing for cuts in the $8.4 million range, according to The Chronicle. While they had already reduced their budgets by $8 million over the previous year, the new funding will allow the state’s colleges to remain steady in the coming fiscal year.

Some states had already been preparing for massive cuts had the funding not come through. In Massachusetts, funding for public colleges there was already cut by 12 percent, a move lawmakers there must analyze now that some additional funding has come through. In Texas, a higher-education panel recently recommended that students take more of their learning off campus to save public institutions some money. According to another article in The Chronicle of Higher Education, the proposal suggested students should complete at least 10 percent of their degrees via online courses and remote programming. The plan would affect undergraduates at all of the state’s public colleges. While this is still just a proposal, a push toward online learning isn’t a new idea. In Minnesota, higher education officials hope to have students earn 25 percent of all credits earned through the public college system through online coursework by 2015.

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