University largely unfazed by state cuts

Though cuts in the projected New Jersey state budget for fiscal year 2004 may affect the arts on campus, most other aspects of University life should remain unchanged.

As a private institution that relies primarily on independent financing, Princeton is not among the many public state schools that will face heavy budget cuts due to Gov. James E. McGreevey's reported $26.4 million reduction.

University officials could not produce exact figures reflecting the impact of the budget cuts, but Christopher McGrudden, University treasurer, speculated that the impact would be only slight.

"If a department is affected, it is only nominally," McGrudden said.

The state still plans to provide $1.7 billion in aid to higher education institutions in fiscal year 2004.

But after reallocation of resources to cover fixed increases in pension and benefits programs associated with higher education personnel, there will be about $100 million less in actual operating expenses for colleges around the state.

"There are increased expenses in terms of pension and benefits that drive up the cost of education substantially," said Matt Golden '94, spokesman for the New Jersey Treasury Department.

According to the New Jersey State Budget Overview, the increased cost of pension and benefits will total about $70.1 million in the 2004 fiscal year.

Support nonprofit student journalism. Donate to the ‘Prince’. Donate now »

When the numbers are broken down, independent colleges and universities that received about $24.5 million in aid during fiscal year 2003 stand to lose about $4.5 million in 2004, Golden said.

Though the University's academic community may not be affected by McGreevey's proposed 2004 budget, other aspects of campus life stand to lose substantial funding as a result.

Most visible is the $31.7 million budget cut for the arts and cultural activities, which would cut funding to McCarter Theatre — the nearby arts venue independent from the University — by $600,000.

The budget has yet to garner state legislative approval, which would most likely occur close to the July 1 deadline for a balanced budget.

Get the best of the ‘Prince’ delivered straight to your inbox. Subscribe now »

In the next four months, the legislature may make changes to McGreevey's tentative 2004 budget, translating to possible shifts in appropriations. Thus, the $26.4 million figure is not set in stone and could change as legislators reallocate revenues.

Currently, the largest appropriation increase is slated for postretirement medical benefits for state employees, which should increase by about $100 million.

Meanwhile, wireless communications and cell tower assessments stand to lose the most from the new budget, which allocates them about $46 million less.