Before the coronavirus pandemic, several legislators were pushing towards an increase in the budgetary allocation for public colleges and universities. However, the tax revenue erosion since the outbreak has created a huge impact on higher education funds as coronavirus scrambles funding.
On the one hand, higher education is struggling to adapt to the current infrastructure as classes have moved online. On the other hand, the shutting down of schools and colleges has drastically changed the state’s funding outlook.
The following proposals are affected by the COVID-19 outbreak:
Free Tuition Program
Free tuition programs have gained importance in several state colleges and universities in the past few years. Lawmakers and senators in New Mexico, Washington, Illinois, Pennsylvania, New York, and New Jersey have been pushing for extending financial aid to a more extensive student base.
Job-Training Program
To control unemployment and fillup technical job vacancies, states were looking forward to incentivizing job training programs. State-sponsored offerings such as tax credits for employer training, loan forgiveness programs, and student financial aid were expected to meet the industrial requirements of high-demand sectors.
Student Health and Safety
Certain states were gearing up to offer services that go beyond the extent of education. Services such as food assistance, housing, mental health counseling, etc. were in the pipeline to help the students.
As the impending economic recession looms ahead, the competition for financial resources will heat up. As a result, state-sponsored higher education funding will trickle down. Funds will be reallocated to other issues such as healthcare, unemployment, insurance, and other unprecedented challenges.
The financial implications of COVID- 19 on the higher education budget can only be assessed in due time. Looking for a consulting firm with experience working with legal, salary, and other human resources issues? Contact the professionals at McKnight Associates, Inc. We are ready to offer you hands-on human resources consulting for colleges, universities, medical centers, and organizations of all sizes.