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Actions by state government could greatly impact Loyola in coming year

Governor O'Malley proposes cuts to Sellinger fund despite benefits to state, private institutions would be hit hard

Published: Tuesday, February 9, 2010

Updated: Monday, April 19, 2010 01:04


By Katerina Kienle Editor in Chief

While this weekend's blizzard and class cancellations may be the most recent topic of conversation for Loyola students, state government actions in Annapolis that could drastically impact Loyola next year continue to be debated.

On January 19, Maryland Governor Martin O'Malley held a press conference to propose his state budget for the 2011 fiscal year and announced that he allocated only $30 million for the Sellinger Program, the program through which state funding is provided to independent higher education institutions.

The dramatic cut, if approved by the Maryland General Assembly by the end of its session in April, would greatly impact the budgets of Loyola and more than a dozen other institutions.

"It's really important that everyone gets involved and takes the time to understand exactly what the Sellinger Fund is and how important it is to the University," said Student Government Association President Keith Masiulis. "It brings a substantial amount of funding into our school and if we don't receive it, it could affect many facets of the university that make Loyola, Loyola."

The Governor's proposed FY2011 budget would cut the Sellinger program by $22 million, a 42 percent reduction and a cut that is not nearly as drastic as that for public universities. For years, the state financial support for public, independent and community colleges, while not monetarily the same amount, have at least increased or decreased at the same rate. For example, if the funding for public institutions were to decrease by 5 percent, the funding for independent universities would also decrease by just 5 percent.

This common link has recently been severed.

In fact, this cut is so significant that, on a per student basis, the FY2011 allowance would bring the Sellinger Program back to a level not seen since 1987.

"It's a real investment on behalf of the state to have schools like Loyola that add to the intellectual capital that exists in the state," said Loyola Vice President for Administration Terry Sawyer.

"The people that are ultimately going to become leaders, get jobs, pay taxes, volunteer at schools and all the things that communities need - Loyola is an importer of that. We should not be treated disproportionately in terms of funds in comparison to the public institutions."

In regards to how Loyola itself would be affected, last year, Loyola received $4,502,555 in Sellinger funds, an amount already heavily cut by the state in comparison to previous years. This year they are proposing to reduce that amount by an additional $1,019,341, or 22.6 percent.

This money is used toward various facets of Loyola, like the quality of programs and financial aid. If the Maryland General Assembly does vote to cut the Sellinger Fund, the Loyola Board of Trustees and the Loyola University Budget Committee would be faced with the difficult task of deciding how to overcome the problem and what programs would face cuts, a complete catch-22 situation that has the potential to affect the entire university. "This matter is especially important for me because, like other students at Loyola, I rely heavily on financial aid to come here," said sophomore Santina Craze who is also a Maryland resident. "Loyola always attempts to meet full demonstrated financial need, however if this fund is lowered this could affect that and I may not be able to finish my last two years at Loyola."

The Sellinger Program, established in 1973, was created, along with the state, by former Loyola president, Father Joseph A. Sellinger, the same president for whom the School of Business and Management is named.

Since its creation, the fund has helped hundreds of thousands of students in Maryland receive bachelors, masters and doctoral degrees and it now serves over 63,000 students annually. While some may be against the state funding of independent institutions, state support for private higher education is offered in every U.S. state except Nevada and Wyoming. Meanwhile, in a recent statewide poll, 69 percent of Maryland voters demonstrated support for the continuation of Sellinger, many understanding the benefits that private higher education brings to the state.

In addition to producing intellectual capital, private institutions like Loyola attract students from across the country. These individuals may not only end up becoming permanent Maryland residents and advance the community, but also work, spend money, and therefore benefit the Maryland state economy during their time here.

Furthermore, the Maryland taxpayer dollars used annually to produce a single degree at a public institution, $36,000, are significantly higher than taxpayer dollars used to produce a degree at a private institution, only $6,000. Finally, graduation rates at independent institutions are that much higher than public and the degrees are finished in a shorter period of time, another way in which the cost to Maryland taxpayers is less when a degree is produced at institutions like Loyola. Yet Governor O'Malley has still proposed to cut the Sellinger fund by a drastically larger percentage than the desired reduction that would still allow private institutions to continue to flourish.

"These cuts are too steep, they are not equitable, and they would create severe hardships for the MICUA colleges and students they serve," said Tina Bjarekull, president of the Maryland Independent College and University Association, in a recent testimony to the Maryland Senate Budget and Taxation Committee.

MICUA, an association that represents the 17 independent universities in Maryland, including Loyola, has recently presented its case before the General Assembly. Meanwhile, Loyola administrators and students have also been taking time to come before the state legislature to advocate on behalf of the university.

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