PHOENIX - With another potential tuition increase looming at the UA, a Tucson legislator is trying to increase the amount of money the state puts toward financial aid at state universities to make higher education more accessible.
The bill, sponsored by Sen. Tim Bee, R-Tucson, would increase the amount of money the state puts into the Arizona Board of Regents financial aid trust fund by increasing the ratio at which they match funds from the universities from 1 percent to 1.5 percent.
The fund, established in the late 1980s, matches the $35 fee students pay to the regents with a state contribution. The fee, which is 1 percent of in-state tuition, increased by about $10 last year because of the UA's record-setting tuition hike.
However, the state has failed to match the universities' contributions to the fund for the last three years, as lawmakers struggled to overcome gaping budget shortfalls.
Last year, the state's universities collected $2.9 million in fees, but only received $2.2 million in state appropriations.
If the bill does pass and the ratio increases, it may be more of a symbolic victory than a practical victory because neither the governor nor the GOP's Joint Legislative Budget Committee budget have allocated money for the fund in their budgets this year, said Greg Fahey, UA lobbyist.
"Money is so tight that we may have to keep working at it next year," Fahey said. "In better times financially for the state, we can get it done."
The bill has the backing of student lobbyists from the Arizona Students' Association, who will be at the Capitol when the bill is discussed early next week, said Amy Hicks, ASA associate executive director.
"Right now, students pay a disproportionate amount into the fund compared with what the Legislature does, and that's not fair to students," Hicks said.
President Peter Likins spoke to the House and Senate appropriations committees last week, stressing the importance of financial aid in making college affordable for working-class families, and asking the state to consider stepping up their contributions.
"We're finally figuring it out. To maintain affordability as others do around the country, you have to have a significant financial aid program," Likins said.
The fund has three revenue sources: state revenue, student fees and interest generated by the $30 million permanent trust fund. Half of the fund is used for financial aid each year, with the other half left to accrue interest.
About 2,500 students around the state benefited from the financial aid trust fund last year, receiving an average award of $1,000, said Gale Tebeau, associate executive director of the Arizona Board of Regents.
The financial aid trust fund is limited in the scope of its impact on the universities, which generate most of their financial aid from federal grants and tuition payments. But it still offers vital aid to many students, Tebeau said.
"It's virtually the only state aid we get," Tebeau said. "Most other states get a significant amount of state aid. ... What we get is basically miniscule in comparison."
According to a board of regents report on financial aid released this fall, the state's contributions made up just 0.2 percent of the $692 million in aid distributed to the state's universities.
While the overall amount of financial aid offered through the Arizona university system increased by 22 percent between 1998 and 2003, the amount of state aid has decreased slightly in the same five years because the Legislature cut funding to most state agencies to compensate for budget shortfalls.
Any commitment from the state to boost financial aid, no matter how small, would be a major step toward achieving the UA's goals of increasing financial accessibility, Provost George Davis said.
"That would be a significant symbolic help. Any money from the state won't hurt. We'll use it," Davis said.
Bee's bill will be read before the Senate Education Committee today, where committee members will discuss the bill for the first time.