$1 Billion UW Surplus Has State Lawmakers Outraged

A recent financial review of the UW System found a $1 billion surplus, and state lawmakers are furious.

According to a story on Wispolitics.com, a review by the Legislative Fiscal Bureau discovered the overage. UW officials told the bureau that a good chunk of that money comes from the federal government for specific purposes and another healthy slice is from gifts. Still, that leaves almost $650 million in university system coffers, some $414 million from tuition alone.

GOP leaders in Madison — including Joint Finance Co-Chairs Sen. Alberta Darling (R-River Hills) and Rep. John Nygren (R-Marinette) — issued a statement shortly after they received the LFB's report, taking UW officials to task over what they said is "gross mismanagement of the system's finances."

“At a time when the UW System is asking for more flexibility and funding from the state, this situation clearly illustrates the need for strong legislative oversight," they said. "Our state deserves better from the institutions that are educating our students and future leaders. It is not only unfair to the students and their parents who keep getting hit with tuition hikes; it’s unfair to the taxpayers of Wisconsin."

The UW System has raised tuition 5.5 percent each year for the last several years.

Gov. Scott Walker is also pretty annoyed, joining with leaders of the Joint Committee on Finance to call for the UW system to freeze tuition for the next two years in light of this news.

"It is very concerning to learn the UW System has been running a surplus balance of this size, especially at a time when students, families, and lawmakers have continually heard from the UW System about the need for more money to offset 'devastating cuts,'" he wrote. "At a minimum, on behalf of students and their families, I am asking legislative leaders to freeze tuition increases for two years for the entire UW System during their deliberations on the budget."

Smaller increases, cutting waiting list for aid

The same day GOP lawmakers released the report, UW System President Kevin O'Reilly released a plan that calls for keeping tuition increases to 2 percent annually for the next two years, cutting the waiting list for financial aid altogether, and creating additional work-study opportunities.

"In addition to providing more outright grants and scholarships, we will provide funding to campuses to offer more work-study positions and paid internships with local businesses. Research shows that linking working and learning in this way helps students complete their degrees and land jobs after graduation," Reilly is quoted as saying.

The Journal Sentinel noted that in 1980, a typical Wisconsin family could have sent three children to college for the cost of one child today and that student loan debt has surpassed credit card debt.

Rep. Cory Mason (D-Racine), the ranking Democrat on the Joint Committee on Finance, joined his Republican colleagues in calling for changes.

“University of Wisconsin System President Kevin Reilly recently testified in front of the Joint Committee on Finance that the average UW student graduates with approximately $27,000 in student debt," he said in a statement. "Not only should we be freezing tuition given the news of the UW’s surplus, but the state budget deliberations should include a serious conversation about reducing student debt by lowering the cost of tuition, increasing student financial aid, or both.”