The Alabama Commission on Higher Education is proposing a 11.19% budget increase for public colleges next year, which officials say will offset unexpected costs of staffing demands and economic inflation.
The ask, while hefty, is less than last year’s recommendation to boost the budget by nearly 18%, and comes amid record growth in the state’s education budget.
This year, ACHE said it will focus about 41% of the additional funds on salary bumps and benefits, while about 38% will respond to rising inflationary costs. Other added costs will account for weighted credit hours and mandatory funds. Construction costs, in particular, have been an added burden on state colleges, commissioners said, largely due to the rising cost of lumber and other building materials.
“Institutions told us they completed the study phase of construction, and several months later when work began, the quote had increased by several million dollars,” Finance Committee Chairman Stan Nelson said in the news release. ACHE also plans to ask the legislature for an additional $5 million for deferred maintenance projects at Alabama colleges and universities, and an additional $6 million to support reengagement efforts with Alabamians who dropped out of college before earning their degrees.
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