New Jersey Assembly Bill A3921

New Jersey 2022-2023 Regular Session

• Introduced: 5/9/22
• Refer: 5/9/22

Caption

Prohibits public institutions of higher education from appropriating funds generated by tuition or student fees to its athletic programs.

Impact

If enacted, A3921 would enforce stricter budgetary controls on athletic programs within state universities, directly affecting how these institutions manage their finances. This could lead to significant changes in the operational funding of athletic departments, which have often relied on funds generated through student fees and tuition to offset their deficits. The bill explicitly states that any violations of this prohibition could result in civil penalties equivalent to the amount of funds misappropriated, adding an enforcement mechanism to ensure compliance.

Summary

Assembly Bill A3921 prohibits public institutions of higher education in New Jersey from appropriating funds generated by tuition or student fees to their athletic departments or programs. The intent of this bill is to prevent universities from raising tuition fees to cover the financial shortfalls associated with their athletics. Mandated by the bill, institutions must certify annually to the Secretary of Higher Education that they have not diverted these funds, ensuring a clear separation between academic funding and athletic expenditures.

Contention

One notable contention surrounding A3921 arises from concerns about the impact on athletic programs, especially in light of reports that some public institutions, like Rutgers, have struggled with significant budget deficits in their athletics, sometimes exceeding $40 million. Critics may argue that this bill could starve already vulnerable programs of necessary funding while proponents would emphasize the need to keep tuition affordable for students and prevent the subsidization of athletic programs at the expense of academic funding. There are broader implications regarding how universities balance their financial commitments to both academics and athletics in terms of resource allocation.