The Excelsior Scholarship — New York’s Take on Free Tuition
By Dylan Opalich
On January 3, 2017, New York Governor Andrew Cuomo (D) proposed a free tuition program for students whose families make less than $125,000 annually. With Bon Jovi’s “Work for the Working Man” playing in the background as Cuomo approached the stage, joined by Senator Bernie Sanders (D), it was clear that the rhetoric of free public college did not die after the November 8 election.
Cuomo used his own father’s narrative of growing up in Queens, having access to public higher education, and becoming governor, as an example of how public education mobilizes the American Dream. He continued with saying, “what high school was 70 years ago, college is today” and for New Yorkers today to have the same opportunity as his father did, public higher education is a necessity. Despite having more jobs than ever in the state, 70 percent of the new jobs require some form of a college education, which excludes over half of New Yorkers from eligibility.
Cuomo’s plan would cover tuition for students who are enrolled full-time at either institutions in the State University of New York (SUNY) or City University of New York (CUNY) system, which are collectively 84 two- and four-year colleges and universities throughout the state. Funding would kick in after New York’s Tuition Assistance Program (TAP) and federal grants are subtracted, making Cuomo’s plan a “last-dollar” college grant.
There are contrasting perspectives on the efficiency of the last-dollar approach to free public college. On the one hand, last-dollar grants usually have the fewest benefits for low-income students because tuition for these students is usually already covered by existing need-based federal and state grant programs. Because the new grant money does not apply to non-tuition costs (room and board, transportation, etc.), low-income students generally do not benefit from these programs. The program would instead benefit students from middle-class and upper-middle class backgrounds that do not benefit significantly from state and federal aid. Therefore, some argue that these last-dollar programs are inefficient: state resources should be targeted to help the neediest students afford non-tuition expenses rather than help middle- or even upper-middle class students afford tuition.
On the other hand, some contend that the powerful message of “free college” will attract more students to college because it will alleviate concerns over costs. The message or marketing of free college, in their opinion, remains as important as the distribution of resources.
At New York’s public institutions, tuition has been kept relatively low (averaging $4,350 at SUNY two-year institutions and $6,470 at SUNY four-year institutions) and often students receive sizable discounts off their tuition through TAP, which signals that the crushing student-debt Cuomo aims to eradicate is not predominately from tuition costs. Rather New Yorkers are borrowing to cover the costs of housing, childcare, car payments, or any of the myriad of expenses they are facing and would continue to face under this plan.
The New York Times estimates the plan to cost $163 million, adding to the $1 billion that New York currently spends on TAP. These figures, however, could change depending on the future of the federal Pell grant program. The costs to the state could rise if Congress cuts award amounts for the Pell Grant or tightens eligibility requirements.
Unlike the other 13 states that have proposed some form of free college plans, New York’s does not seem to exclude students based on their age or high school graduation date, or choice to attend a two- or four-year public institution of higher education. The inclusion of adult students in such programs has been marked as a key component to increasing postsecondary attainment rates and giving students the ability to choose between a two- and four-year institution addresses concerns about academic fit, student success, and economic stratification that are often posed by critics of free community college plans.
If the state legislature passes the program, implementation would be done in phases. Beginning in the fall of 2017 for students making up to $100,000, those making up to $110,000 gaining eligibility the following fall, and full implementation is expected in the fall of 2019.
Cuomo has yet to submit his budget for the upcoming fiscal year and has until January 17 to do so, in the meantime, he is expected to make six State of the State addresses across the state beginning January 9, 2017. The legislature has until the beginning of the new fiscal year, April 1, 2017, to approve the Excelsior Scholarship. The proposal is introduced amidst an expected $3.5 billion budget shortfall and remarks from Cuomo that funding growth will be limited as a consequence. Additionally, this proposal comes off of recent pressure the state legislature has placed on the SUNY system to avoid tuition increases despite declining state funding, leaving the likelihood for the proposal’s passage unclear.
Dylan Opalich is the assistant director of state relations and policy analysis at the American Association of State Colleges and Universities (AASCU)
