Arkansas State University System President Chuck Welch has instructed the system's six institutions to form budgets that would hold tuition and fees steady this fall.
Welch's directive follows one from the University of Arkansas System trustees last week to freeze tuition and fees for at least the fall term. Other public universities in Arkansas are still evaluating their budgets for next school year, spokesmen said Tuesday.
No boards of trustees will approve any university budgets -- which include tuition and fee plans -- until later this month, at the earliest. Boards typically finish setting their budgets by mid-June.
"It's ultimately a Board of Trustees decision," Arkansas State University System spokesman Jeff Hankins wrote in an email to the Arkansas Democrat-Gazette. "No resolution is necessary -- it would be part of our normal budget adoption process at the next board meeting."
He continued: "The board, Dr. Welch and the chancellors are keenly aware of the difficult economic situation and enrollment challenges. They have also routinely emphasized affordability for students and families, so his request would be consistent with these ongoing efforts."
Colleges and universities themselves are facing financial uncertainty because of shrinking state funding -- the result of shrinking state revenue -- and the financial challenges faced by the students whose tuition they additionally rely upon. Schools also made additional purchases that allowed them to move courses fully online or remote.
"The ASU System realizes the burden being placed on our students and families by this pandemic," Welch said in a statement sent to the newspaper. "We want to do all we can to assist our families during these challenging times."
Today, the Arkansas General Assembly is set to vote on state appropriations to each public institution of higher learning. Arkansas State University System institutions collect more than $100 million from the state each year in operational funding, but universities are budgeting to receive less.
According to Hankins, the system's six schools are leaving some categories of their budgets blank, accounting for a 10% reduction in funding.
Schools across the state were told last month that they would receive less money than anticipated because of expected state revenue shortfalls related to a contracting economy in a global pandemic.
Last week, the U.S. Department of Education sent $130 million to 77 Arkansas colleges and universities as coronavirus relief aid via the federal CARES Act. At least half of the money must go toward helping students directly, but the other half is for the schools to use at their discretion.
On Tuesday, the department announced another $30.7 million to Arkansas from the Governor's Emergency Education Relief Fund, which can be used at the discretion of state governors at all levels of schools and education-related organizations.
Arkansas State University System schools received $15.3 million collectively from those CARES Act stimulus funds. Arkansas State University in Jonesboro will get $9.3 million of that money.
"We received limited guidance from federal officials regarding emergency financial aid for students but expect to have significant flexibility in distribution of the funds once they are received," Hankins wrote. "Our financial aid teams are discussing options -- ranging from room and board refunds to scholarships -- and will communicate plans to students as soon as possible."
But the federal funds are less than what the cuts from the state amount to, Hankins said.
Hankins said Tuesday that system schools had made plans to adjust to lower state revenue this year without having to lay off employees.
The university and five colleges will reduce travel, supplies and services, utility expenses, and will make use of "unused capital balances, unbudgeted Educational Excellence Trust Fund revenues, and 'carry forward' funds from various departments," Hankins wrote.
Metro on 04/15/2020