Colleges Want Piece of Federal Government’s “Bailout Pie”
With 39 states anticipating budget shortfalls next year totaling
more than $100 billion, colleges are urging Congress to include them
in a second economic stimulus bill currently being drafted, The
Chronicle of Higher Education reports (“As the Economic Crisis Hits
Home, Colleges Seek Help From Congress,” Nov. 13, 2008).
Hard hit by the deteriorating economy and financial markets, many
schools are dealing with declining endowments, reduced support from
the state, and higher numbers of financially needy students. To help
schools overcome these challenges, college lobbyists are asking
Congress to include funds for financial aid, research, and
infrastructure as part of the new economic-stimulus bill.
The Association of American Universities and the American
Association of Medical Colleges are specifically lobbying Congress
for more money for research, emphasizing the ways colleges support
the economy by creating new jobs, graduating work-ready students,
and promoting business development.
In a recent letter from the AAMC quantifying its claims, the
organization stated that medical colleges were responsible for about
3 million jobs, $20 billion in state tax revenue and injected $451
billion into the economy last year.
Billions Requested by College Associations
Many college associations representing a wide array of interests
have petitioned Congress for several billion dollars, each for
distinct purposes:
In their pursuit of funds, schools are competing with state
governments, as well as the ailing airline and auto industries. And
with the transfer of power on January 20, 2009 from the current Bush
administration to the Obama administration, schools may have to wait
until February or later to see if they get the capital infusion they
seek.
With so many urgent needs confronting Congress — including the
possible collapse of Ford, Chrysler and GM, and the loss of millions
of jobs if the automakers don’t receive $25 billion in emergency
government loans — colleges realize that they aren’t likely a top
priority to receive government aid, the Chronicle suggests.
Cynthia Littlefield, director of federal relations at the
Association of Jesuit Colleges and Universities said, “There are so
many people going to the trough who have legitimate needs that it’s
going to be hard.”