Stimulus Money Helps Colleges Avoid Slashing Budgets Now, but Big Cuts May Loom

Yes, the stimulus funds are helping, but few expect state budgets to be in much better shape after that money runs out. So, what happens in 2011? "We have a lot of administrators who are talking about retiring by 2012; they don't want to go through whatever's coming."

"This year was bleak for state higher-education budgets. But college leaders are even more worried about what comes next.

The billions of dollars in federal stimulus aid to plug shortfalls in state education budgets have helped limit the damage this year, but the money hasn't prevented all of the cuts to college budgets. Most states are spending the bulk of the stimulus money they are receiving for education on elementary and secondary schools, and roughly 20 percent on public colleges. In one state, Wisconsin, none of that federal aid is going to higher education.

And the situation could get worse. Many states are spending all of their education stimulus money to fill gaps in the current and next budget years, leaving nothing for 2011, when many of their economies are still expected to be suffering from the recession.'

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http://chronicle.com/weekly/v55/i39/39a02501.htm