The state's annual budget, released this week by Acting Governor Richard Codey, aims to increase spending on higher education by nearly $50 million while cutting $600 million from the overall budget.
While the increase will have a direct impact on public colleges and universities, it will likely have little to no effect on the University because it is a private institution.
"The governor has shown that he values higher education," said Paul Shelly, spokesman for the New Jersey Association of State Colleges and Universities.
The new budget reduces total state spending to $27.4 billion to reduce the $4 billion deficit.
The University will receive an amount close to last year's $700,000, a figure based on the number of attending New Jersey residents, predicted Pam Hersh, director of Community and State Affairs at the University.
"As far as I understand, the proposed budget recommends about the same direct aid for the independent sector," said Hersh.
Much of the swell in education funding is earmarked for employee benefits, to be shared among the state's 12 senior public institutions. Roughly $17.8 million will go toward salary funding and $41.2 million has been added to finance employee fringe benefits, such as healthcare and social security. Tuition aid grants to students will also increase by $9.3 million.
These increases come partly at the expense of funds allocated to individual universities. The budget of the University of Medicine and Dentistry of New Jersey (UMDNJ) was reduced by $13 million, and $2.2 million was cut from Rutgers University's allocation.
Despite these budget cuts, both UMDNJ and Rutgers will continue to receive the greatest amount of funding among their fellow state institutions. UMDNJ will receive $196.5 million in funding, and Rutgers has been allocated $323.8 million.
"In the coming months, we will work closely with the leadership in Trenton to ensure that Rutgers continues to meet the needs of our students," Rutgers President Richard McCormick said in a statement.
Seven of the 12 other public state universities will receive the same funds as last fiscal year unless representatives successfully lobby the state legislature and governor for increases.
"It's incumbent on us to explain [to the legislature] how the state, paying for a larger share of costs, will benefit students," Shelly said.
He said that New Jersey public universities are some of the most highly indebted in the nation, facing a burden of approximately $1.2 billion.
This budget pressure could lead to a jump in tuition at New Jersey state schools, Shelly said, where the average tuition is around $7,600 without room and board. These institutions have kept their tuition increases below 10 percent over the last several years.
"The colleges will do their best to moderate tuition and absorb at least half of the brunt of their shortfalls through budget cutting," Shelly said.
But it is a national trend that "the student's contribution is becoming bigger than the state's," he said.
"We're not widely jubilant, but in context, it's certainly a good starting point and we'll be trying to negotiate for a better deal," Shelly said.
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