Albany Times Union

Tuition aid funding to increase

Minimum award in state program to rise from $500 to $1,000

- By Molly Burke

ALBANY — A financial aid program for college students is expected to see increases in funding in the state budget that’s in the final stages of negotation­s, according to sources familiar with budget negotiatio­ns.

The Tuition Assistance Program, which awards financial aid to the neediest college students, is set to see minimum awards increase from $500 to $1,000 under the budget. The program is also expected to see an increase in the eligibilit­y income cap for dependent students — from $80,000 to $125,000, Gov. Kathy Hochul said at a news conference on Monday.

A second program, known as Bundy Aid, has not fared so well. The program offers financial support for students attending independen­t colleges and universiti­es. It was proposed to decrease by $19 million in Hochul’s executive budget released in January, limiting its use to institutio­ns with endowments less than $750 million. Legislator­s pushed back on the cuts in one-house budgets, but as a budget deal looms Hochul’s cuts are likely to be included, sources said.

The Tuition Assistance Program, which started 50 years ago, previously covered the entire cost of tuition at State University of New York and City University of New York campuses under the maximum award. The state Senate proposed increasing the maximum from $5,665 to $6,165 — which still falls $905 short of SUNY tuition — but that request measure is not expected to be included in the final budget.

The awards for New Yorkers can be used toward tuition at both public and private colleges and universiti­es within the state.

Assemblywo­man Patricia Fahy and state Sen. Toby Ann Stavisky championed the push to amend the tuition assistance, including increasing the income caps for the first time in more than 20 years.

Fahy cheered the increase in maximum qualifying income limits for independen­t students — who do not have tax dependents — from $10,000 to $30,000.

Blair Horner, executive director of New York Public Interest Research Group, said that cuts to Bundy Aid are a “huge mistake,” especially when some independen­t and private colleges and universiti­es are “on the ropes financiall­y.”

The College of Saint Rose, which announced their closure in late November, would not have exceeded the $750 million endowment cap for schools receiving Bundy Aid. Rensselaer Polytechni­c Institute, which has an estimated endowment of more than $860 million in 2022, would no longer qualify for Bundy Aid under Hochul’s proposal.

Bundy Aid is often used for scholarshi­p money for low-income New York students attending private colleges, which Fahy fears could take a hit if the

us to start putting controls and guardrails in place for what has historical­ly been a very unregulate­d program,” Hochul said. “That’s how we ensure that the people who really need it get the best quality care while eliminatin­g the waste, fraud and abuse.”

While the proposal was floated months ago in budget amendments, rallies at the state Capitol on the issue have intensifie­d in recent days as it became apparent some changes are likely to be included in a final deal. People with disabiliti­es and other advocates said they are upset by the opacity of the move, and are now trying to convince lawmakers to resist the changes as they hammer out a budget.

Because the program sprang from disability advocacy, protestors said they see the rollbacks as a return to the days of “institutio­nalization,” referring to a 20th century model that saw the widespread warehousin­g of people with disabiliti­es in institutio­ns.

They note the state should have played a more active role in overseeing the program to ensure funding was well-spent.

There are dozens of independen­t living centers in New York, but 11 of them serve as fiscal intermedia­ries. If those were to shrink or shut down as a result of the budget changes, around 200 employees — many of them people with disabiliti­es themselves — could stand to lose their jobs, said Lindsay Miller with the New York Associatio­n on Independen­t Living.

“The issues in this program now are a result of the system that the state created, and they currently today have the administra­tive authority to make changes that would take out some of the bad actors,” Miller said. “And rather than directing the (state) Department of Health to do that, they have decided to completely eradicate all of the providers and just wipe the slate clean and start over. And that’s incredibly frustratin­g for us.”

Hochul and Budget Director Blake Washington on Monday pointed to a system of long-term care and health insurance companies that have swelled out of control.

Fiscal watchdogs and state officials have said that the program has led to people using popular social media platforms like Tiktok — and more traditiona­l advertisin­g methods like the subway system in New York City — to encourage people to sign up in exchange for easy money.

“People are literally skimming off the top of the program, and these fiscal intermedia­ries just grew exponentia­lly,” Hochul said.

Which company will presumably gain a contract with New York to operate as the state’s single fiscal intermedia­ry has also been a source of contention. Washington said there has been no decision on which company will be chosen and indicated the vendor would be chosen through a competitiv­e process.

Assembly Speaker Carl E. Heastie does not dispute the proposed changes to the program Hochul had announced, though he cautioned that the final budget is still in flux with lawmakers.

“Change is difficult,” Heastie said. “But we’re the only state in the country that has hundreds of fiscal intermedia­ries. We want to make sure that Medicaid dollars get to the people who really need it. And we just think this is a much more efficient and cost-saving way to deliver services to people.”

 ?? Lori Van Buren/times Union archive ?? Tuition Assistance Program minimum awards and income eligibilit­y caps are expected to increase, as championed by Assemblywo­man Patricia Fahy, above.
Lori Van Buren/times Union archive Tuition Assistance Program minimum awards and income eligibilit­y caps are expected to increase, as championed by Assemblywo­man Patricia Fahy, above.

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