State of New York | Executive Chamber
For Immediate Release: January 15, 2010
Contact: Marissa Shorenstein | marissa.shorenstein@chamber.state.ny.us | 518.474.8418 | 212.681.4640
Division of the Budget Contact: Matt Anderson | matt.anderson@budget.state.ny.us | 518.473.3885 |
518.248.7310
GOVERNOR PATERSON PROPOSES MOST SIGNIFICANT PUBLIC HIGHER EDUCATION
REFORMS IN A GENERATION
Sweeping Reform Package Would Provide SUNY and CUNY the Flexibility Needed to Become Centers
of Job Creation
Measures Would Rationalize Tuition Policy; End Overregulation; Improve Accountability
Governor Paterson: ‘Strengthening the Public Education System Critical to the New Economy’
Governor David A. Paterson today announced that his 2010-11 Executive Budget will include the most
significant reforms to the State’s system of public higher education in a generation. The Public Higher
Education Empowerment and Innovation Act will provide the State University of New York (SUNY)
and the City University of New York (CUNY) the flexibility needed to become centers of job creation.
The proposed reforms would enable New York’s public higher education system to become the new
model of excellence that better prepares students for the jobs of the future, while also developing the
jobs of today. In addition, the measures would foster the type of innovative public-private research and
development partnerships that will drive New York’s future prosperity.
“Currently, Albany micromanages everything from the chalk campuses purchase to the cost of tuition
that students pay. This burdensome overregulation threatens the ability of our public higher education
systems to promote economic development and successfully adapt to changing educational and fiscal
circumstances,” Governor Paterson said. “We must provide our institutions of public higher education
with the freedom and flexibility they need to drive development both on campus and off, preparing our
students for the New Economy jobs that will propel New York forward.”
Governor Paterson’s proposal would take politics out of tuition setting and institute a rational policy that
makes the cost of public higher education more equitable and predictable for students and families. The
reforms would also provide SUNY and CUNY with greater operational independence consistent with
their mission so that they can adapt and thrive in an ever-changing innovation economy. The measures
would eliminate numerous overregulations on contracting, procurement, land use, and other areas, while
still maintaining appropriate accountability and State oversight.
These reforms would create more than 2,200 faculty positions, 7,000 staff positions, 43,000 construction
jobs on SUNY university and medical centers, according to SUNY estimate. They will also expand
access to higher education by allowing campuses to accommodate an additional 20,000 students above
planned targets.
SUNY Chancellor Nancy L. Zimpher said: “I commend Governor Paterson for his leadership in
bringing forward the Public Higher Education Empowerment and Innovation Act. This legislation
harnesses high-impact, zero-cost solutions that will create jobs, build the foundation for tomorrow’s
economy and strengthen public higher education – while saving millions of taxpayer dollars.
“With the unprecedented cooperation and energetic partnership of SUNY and CUNY, we have taken a
major step in unleashing the public university sector to achieve the promise of economic growth through
top quality education, from community college to research center. This will positively impact every
community in the state with the creation of tens of thousands of new jobs and through billions of dollars
in local investment.”
CUNY Chancellor Matthew Goldstein said: “We commend Governor Paterson for his exemplary efforts
to address flexibility in the financing of public higher education. CUNY is experiencing record student
enrollments as we now serve over 260,000 degree-seeking students--the highest level in CUNY’s history
and a 7 percent increase over the past year. In addition, 2010 Spring enrollments are up 14 percent.
Freshman applications for Fall 2010 are up 10 percent. In these difficult fiscal times, budget flexibility
will enable the University to strengthen its responsiveness to the changing needs of students and to the
changing economy. In order for New York State to compete effectively nationally and in the global
marketplace of careers and ideas, its public higher education systems must have the necessary flexibility
and investment to carry out their educational mission. We are pleased to continue working with the
Governor and the State Legislature to accomplish that vital goal.”
Rational Tuition Policy – Ending Tuition Roulette
Currently, SUNY and CUNY tuition rates are determined by the State budget process. This has created a
system in which tuition increases occur almost exclusively to close State budget gaps and offset General
Fund support during periods of economic distress – a time when students and their families are least able
to afford additional costs.
Moreover, these long periods between tuition rate increases result in some students completing their
degree programs without experiencing a tuition increase, while those attending college during fiscal
downturns experience significant tuition hikes. This is an unfair system that many independent experts
have derided as “tuition roulette” and makes the cost of education unpredictable for students and
families.
Governor Paterson’s Public Higher Education Empowerment and Innovation Act addresses these issues
by instituting a rational tuition policy that:

Moves tuition outside the State budget process, allowing SUNY and CUNY to receive
and disburse revenues from tuition and self-supporting program activities without an
appropriation.

Authorizes the boards of trustees for SUNY and CUNY to implement a fair, equitable
and responsible tuition policy that would provide the universities with the discretion to
raise tuition incrementally up to an annual cap of two and one half times the five-year
rolling average of the Higher Education Price Index (HEPI), making it easier for students
and families to anticipate and plan for the true cost of attendance over the course of a
degree program.

Authorizes the SUNY and CUNY trustees to implement differential tuition rates for
programs and campuses within their systems to enhance academic quality, based on the
recommendation of the college president and in accordance with specific guidelines
promulgated by the trustees.
Ending Overregulation, Ensuring Accountability
Under the current system, overregulation stifles both SUNY and CUNY’s ability to innovate and
compete with peer institutions in other states. Governor Paterson’s proposed reforms would provide
SUNY and CUNY with greater operational flexibility regarding the procurement of goods and
contractual services; the procurement and financing of construction services; and the lease of campus
property. The Public Higher Education Empowerment and Innovation Act would also:

Authorize the lease of real property under the jurisdiction of SUNY to other entities in
support of its educational purpose, and the participation in public/private partnerships that
would benefit SUNY’s mission, and diversify its revenue streams, subject to approval of
a newly created State University Asset Maximization Review Board. This will help
encourage greater business opportunities and innovative research partnerships, since
many potential private companies are unwilling or unable to wait the months or years it
takes for a project to wind its way through the legislative and political process.

Remove provisions of law subjecting SUNY and CUNY to pre-approval of contracts by
the Office of the State Comptroller (OSC) in order to streamline the procurement of
goods and services, while maintaining provisions requiring the post-audit of such
contracts by OSC.

Allow post-audit in lieu of pre-audit requirements for Attorney General approval of
leases between SUNY and its alumni associations in support of dormitory projects.

Prescribe specific semi-annual reporting requirements on revenues and expenditures at a
campus-specific level to ensure continued transparency and accountability.
“These are significant measures, but if we are to make New York the center for job creation, research
and development in the New Economy, it is critical that we strengthen our public education system,”
Governor Paterson added.
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New York State | Executive Chamber | press.office@chamber.state.ny.us | 212.681.4640 | 518.474.8418