Lawmakers who will advocate for New York's public colleges and universities in the next budget plan to fight for increased aid as Gov. Kathy Hochul on Thursday cast doubt the elevated aid recently given to the state university system will continue in the next budget with a $4.3 billion shortfall.

At an unrelated event in New York City, Hochul addressed a report State University of New York leaders released last week that shows the public university system will amass a $1 billion deficit over the next decade without greater support from state taxes or imposing tuition increases the governor supported last year.

The 2023-24 budget included an additional $163 million to boost SUNY's funding for operations and capital investments as the state's public colleges and universities have faced financial hardship after years of declining enrollment and disinvestment from the state. 

"Yes this is a new year, but no one ever expects that the record levels we put in the budget in the last two years, for SUNY and CUNY, for health care, for education, for child care... everything we had to do was to make up for decades of disinvestment," Hochul told reporters Thursday. "I had to right the wrongs of the past with an infusion of money for two years, but never, ever anyone to expect that those same high levels are going to be able to sustained. That's not possible."

SUNY and the City University of New York's budgets were largely kept flat for about a decade under former Gov. Andrew Cuomo regardless of increasing costs.

The governor said she's in talks with SUNY and CUNY leaders and has an ambitious plan to support higher education while cutting the $4.3 billion deficit. Hochul does not support calls from progressive Democrats to increase taxes on New York's millionaires and billionaires to raise revenues.

"I'm ready to roll up my sleeves, go to Albany and work with them to make sure we continue serving every New Yorker as they need to be ... but also make sure we don't break the bank," Hochul said. "I cannot spend money that we don't have. I have to be fiscally prudent to make sure our managers manage the finances of New York."

Lawmakers are eagerly waiting to see what the governor proposes in Tuesday's State of the State address and the release of her executive budget proposal expected Jan. 16.

SUNY's report, mandated by the Legislature, sheds light on how deeply campuses are strapped for cash, with a projected $224 million budget gap across its 64 campuses this year alone. 

But lawmakers at the helm of state higher education policy say they will double down to push for more state funding in the next budget, and will not support tuition increases to prioritize the future of the state workforce —especially as recent investments poise New York to lead in the semiconductor manufacturing industry and artificial intelligence research.

"In order to be the epicenter, you've got to provide the workforce," ssembly Higher Education Committee chair Pat Fahy said Thursday. "We've got to help our own because we've got to grow our own."

Fahy's top budget priority is to expand and increase the Tuition Assistance Program, or TAP grants that help low- and middle-income students cover tuition costs at approved colleges. She says an increase in SUNY's operating aid and TAP are equally necessary to keep New York's public campuses competitive.

"TAP is the best way to keep college affordable for everyone," she said. "...We know from surveys the vast majority of families that are not sending their children or students to college is because of affordability."

Senate Higher Education Committee chair Toby Ann Stavisky agrees, and fears tuition increases would undo SUNY's 1% enrollment increase seen this year for the first time in over a decade.

"We have not seen an increase because we care about middle-class students," Stavisky said. "We've got to keep people in New York not send them elsewhere."

First-time undergraduate enrollment also rose 4.3% across the SUNY system. However, compared to a decade ago, the number of students enrolling is down almost 100,000, according to the report.

Stavisky said she would be hard-pressed to support a budget with the tuition increases that SUNY and Hochul have called "modest," which would index increases to the Higher Education Price Index, or 3% for both the State University of New York and the City University of New York systems and up to 6% for research institutions.

United University Professions President Fred Kowal, the labor union that represents SUNY's faculty and staff, regularly speaks with Hochul's staff. After the governor's commitment in the last two budgets to fully fund foundation aid for Kindergarten through 12th grade students, Kowal says it's SUNY's turn to be made a priority.

He hopes the governor will include $150 million to close the combined deficit across 18 distressed SUNY campuses, not including community colleges, in her executive budget.

"That has to be taken care of first, then additional funding so that campuses can modernize, they can recruit and retain students, so that the burden of costs doesn't keep falling on students," Kowal said.

He also wants to see the Legislature require SUNY to use that money to make stressed campuses whole, but lawmakers aren't optimistic about strong-arming how funds are spent.

SUNY officials are remaining hopeful Hochul will heed their request for more assistance.

“We are deeply grateful for Gov. Hochul’s extraordinary commitment to higher education," SUNY Chancellor John King said in a statement Thursday. "While other states have been retreating from investing in public higher education, Gov. Hochul has made SUNY’s pursuit of excellence a top priority. Last year’s historic $163 million operating aid increase allowed our system to provide high-quality educational opportunities to more New Yorkers, and create and maintain the supports necessary to help them succeed. From academic programs aligned to growing areas of the economy to supports for students with disabilities, and from mental health services to addressing food insecurity, thanks to Gov. Hochul and our legislative champions campuses are better positioned to meet the needs of our students. We’re proud to build on the governor’s vision to continue transforming SUNY for the benefit of generations of students to follow.”