Two key lawmakers have registered their support for the University of Guam’s $57.5 million budget request for fiscal year 2024, $42 million of which would come from the government of Guam general fund.
The budget, which would be nearly double the subsidy for the current year, has been described as a “sound investment,” by UOG President Thomas Krise, an investment he said “ripples through the entire island community.”
“For every $1 UOG receives in general operations funding from GovGuam, UOG generates $3 in additional tax revenue. The University of Guam can be counted on as a sound investment,” Krise said of the fiscal 2024 budget request submitted to the 37th Guam Legislature.
With the budget in receipt of the Legislature for review, The Guam Daily Post spoke with the chair and vice chair of the legislative committee on higher education to ask whether they support or oppose the request, which UOG has said is required to prevent tuition rates from rising in the next fiscal year.
Sen. Amanda Shelton, the chair of the committee, said she has pushed to address the university’s budgetary shortfalls over the last several years.
“My hope is to support the university and our students to prevent any future tuition increase and ensure that our students receive the best possible education here at home. I look forward to the budget hearing for UOG in the coming weeks and working with UOG administration and the committee on appropriations to ensure that our students’ needs are met,” Shelton told the Post.
According to Krise, appropriating $42 million would ensure “zero chance” for a tuition increase in fiscal 2024.
Sen. Jesse Lujan, the committee’s vice chair, also supported UOG’s reasons for the requested budget, and pointed out when speaking to the Post the importance of the institution to the island.
“If we want a fully educated workforce and a diversified economy, we need to fully fund our university, just like we need to fully fund our public schools. We should be doing what we can to help facilitate more opportunities for our students, not obstructing them. Supporting the University of Guam is supporting the future of Guam,” Lujan said.
The government of Guam currently is collecting revenue far in excess of what has been budgeted, but, according to Lujan, the economy remains fragile on the path to recovery from the COVID-19 pandemic. The vice chair said the burden of funding the university should not be placed on UOG or its students.
“UOG should not have to make up underfunding by increasing tuition when (the government of Guam) clearly (is) able to assist further. You have my commitment, as the vice chair for the legislative committee on higher education, to ensure I do everything possible to work with my colleagues in the Legislature to provide UOG with the funding it needs,” Lujan said.
20% raise, hiring
A review of UOG’s fiscal 2024 budget request shows, of the $42 million eyed for general operations, $4.5 million will be used for student financial assistance programs, $1.6 million for the capital improvements fund and $1.9 million for continuing special appropriations.
“This will stabilize university operations and demonstrate our commitment to the success of our students by putting that commitment into action,” Krise said.
Part of the government subsidy will fund salary increases for faculty and staff. UOG’s salary pay scale is less competitive after recent raises were given to Guam Department of Education teachers.
“A teacher VI at GDOE now makes $13,000 more than an associate professor at UOG, despite the fact that both positions require terminal, or doctoral, degrees,” UOG stated in its budget request.
The university board of regents has passed a resolution that approves an update to the faculty salary schedule. The first phase includes a 20% raise for faculty, which UOG estimates to cost $3.6 million in fiscal 2024. The UOG board also outlined another 20% increase to salaries, “through either 5% or 10% adjustments within the next two to four years,” the university stated in its budget request.
UOG also takes into account an additional $2.1 million needed should the Legislature pass Bill 24-37, which would authorize Gov. Lou Leon Guerrero’s proposed 22% pay raises for GovGuam employees on the general pay plan.
Additionally, the request includes $3.8 million to begin filling 77 vacancies in critical faculty, staff and administrator positions that could not be funded as a result of repeated budget shortfalls over the years.
“The university has been forced into a position where we have not been able to replace vacated positions in our already lean workforce,” said Krise, who added budget shortfalls have a “snowball effect” on UOG.
“Starting to fill these critical faculty and staff positions is a top priority for this appropriation. The lack of faculty and support staff affects the number of classes our students need to finish their degrees on time. We’ve made great strides in improving retention and graduation rates, but we have to do much better,” the university president said.
Current tuition, students
The university relies on two major funding sources, GovGuam funding and tuition rates, to operate and cover expenses such as personnel costs, including hiring and retention.
UOG needs adequate funding in both major revenue sources to sustain the institution and maintain the current tuition of roughly $5,600 a year per full-time student, the university said.
According to the university, 60% of the its students are eligible for Pell Grants, which means they are classified as coming from low-income families. Raising tuition may result in a decline in student enrollment because of a lack of affordability, which would net less revenue.
Krise stressed over the last five years that senators have underfunded UOG, with a decrease in budget by more than 35% during that time frame. The only reason UOG was able to maintain its tuition and programs over the last three years, he said, is because of COVID-19 relief funds from the American Rescue Plan.
In fact, the ARP funds allowed UOG to avoid a gradual 30% tuition rate increase originally planned prior to the pandemic, he said.
Unspent federal relief funds are set to expire by the end of this year, meaning the university will have no federal bailout at its disposal to make up for a budget shortfall in fiscal 2024, Krise said. Without additional funds, the university will have to reevaluate the suspension of the tuition rate increase currently in place.
Krise called for the Legisalture to return funding levels to those seen 10 years ago and stabilize the university.
“This budget doesn’t fix it all in one swoop, but it makes a down payment on fixing those problems,” he said.
By: Jolene Toves
Source: The Guam Daily Post