South Middlesex Times

The Rutgers Board of Governors has approved a $5.6 billion operating budget, which includes a 4 percent increase in tuition and fees for the 2024-2025 academic year. This decision will see tuition for a typical full-time arts and sciences undergraduate who is a New Jersey resident rise by an average of $274 per semester, from $6,837 to $7,111. Additionally, average mandatory fees are expected to increase by approximately $63 per semester.

Rutgers aims to enhance access and affordability through various income gap-bridging programs such as the Scarlet Guarantee in New Brunswick, RU-N to the TOP in Newark, and Bridging the Gap in Camden. These initiatives complement New Jersey’s Garden State Guarantee. Last year, about 75 percent of Rutgers undergraduates benefited from some form of student financial aid through these programs and institutional financial aid.

The budget for the fiscal year beginning July 1, 2024, accounts for rising operating costs due to increases in negotiated salaries, employee benefits including health insurance premiums and pension contributions, need-based student financial aid, and inflationary pressures on supplies and general expenses.

"We are committed to providing access to an excellent academic experience and this budget reflects that commitment while meeting our financial responsibilities,” said Amy Towers, board chair.

A significant portion of the budget—77 percent—is allocated towards the university’s core mission areas: student instruction, research, public service, and health care. Nearly 15 percent is designated for administration, operations, and maintenance; 5 percent funds services such as housing, dining, and parking operations; while Division I athletics receives 3 percent.

“This budget is prudently planned to allow us to meet rising costs while continuing to do what Rutgers does best: provide our students with exceptional academic, research and public service opportunities as they pursue their education and become engaged citizens,” President Jonathan Holloway stated.

Key allocations within the budget include:

- Classroom instruction and academic support (33 percent)

- Student services and scholarships (11 percent)

- Sponsored research (12 percent)

- Public service extension programs (21 percent)

Funding sources for the increased budget include tuition and fees (27 percent), state funding from New Jersey (21 percent), health care services (20 percent), sponsored research (15 percent), with miscellaneous sources such as housing services contributing the remaining 17 percent.

“This year efforts will continue to strengthen the university’s long-term financial sustainability,” said J. Michael Gower, Rutgers’ executive vice president, chief financial officer and treasurer. “We are looking for ways to do things differently and better as we pursue opportunities to generate additional net revenue to fund new initiatives.”