Financial planning for Rutgers University during economic crisis

Budgetary Checklist: Rutgers University

Project enrollment, tuition, and likely financial aid needs

The economic crisis may result in higher rates of students accepting offers of admission, as students who would ordinarily attend a private institution may now seek out a scholarship at a public institution such as Rutgers. While increased enrollment will result in increased tuition if the university expands its capacity, increased enrollment will also mean increased costs. Many new and current students may need or desire financial aid or scholarships, more so than in previous years. Financially strapped students from outside the state who are shopping around for the best college prices will require housing, as they cannot commute to school like many Rutgers students have done in the past. Rates of increased enrollment cannot be predicted definitively, given the unique nature of the current crisis. But reviewing past recessionary years may provide some guidance as to the possibility of precipitous spikes in enrollment, so the university can plan accordingly how much tuition it will receive, financial aid needs, and likely capacity-related student costs such as housing.

State appropriations

While New Jersey recently received a windfall of revenue from a state tax amnesty program, designed to encourage individuals who owed 'back taxes' to pay what they owed at a lower rate of interest, the state is likely to remain cash-strapped in the future. Rutgers has weathered consistent cuts in state aid for many years. The only good aspect of this fact is that it is currently less dependant than other state universities on the impoverished legislature.

Competition from other state entities

All universities and colleges within New Jersey have suffered losses and this will result in increased demands for scarce funds. Contacting the governor's office and the New Jersey state Board of Education may be a wise idea to gain a sense of what Rutgers can expect in terms of future funding.

Athletics, extracurricular activities, and other special programs

Recently, Rutgers' football team has gained great prominence because of its many successes. Budgetary cuts may require some of the university's athletic ambitions to be curtailed. However, athletic success is also positively correlated to alumni donations. Soliciting alumni donations may help sustain the athletic program at current levels, although alumni have also faced personal financial losses that may inhibit donations. Additionally, there are many other amenities that draw students to Rutgers, including the ease of transportation to different campuses through its shuttle service and its diversity of majors and certificate programs. If unexpected budgetary shortfalls occur, there must be a contingency or 'what if' plan to seek sources of aid from private sources, such as personal and corporate entities to sustain, for example, its hands-on science laboratory programs, its internship opportunities for communications and business students, and its writing program for English majors and other students with an interest or need to refine their writing.