Discussion Points - New Jersey Legislature
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Higher Educational Services FY 2022-2023
Discussion Points
Office of the Secretary of Higher Education
1. The FY 2023 Governor’s Budget proposes increasing the overall amount of funds for
the Outcomes-Based Allocation program by $43.8 million, $23.8 million of which is being
proposed for the implementation of the Garden State Guarantee initiative. The Garden State
Guarantee initiative requires institutions to ensure that each full-time undergraduate student
enrolling in the fall of 2022 with a family adjusted gross income of up to $65,000 will receive
enough financial aid to eliminate the net cost of tuition and mandatory fees for two years of
study. These tuition and fee costs would be covered in an eligible student’s third and fourth
years of the student’s enrollment.
In addition, the FY 2023 Governor’s Budget proposes changing the formula utilized for the
distribution of the Outcomes-Based Allocations. The Governor’s proposal will newly base each
institution’s appropriation on the number of students with adjusted gross income between $0
and $65,000; degrees awarded to students with adjusted gross income between $0 and
$65,000; degrees awarded to transfer students; degrees awarded in the STEM and healthcare
fields; and degrees awarded to doctoral candidates. Institutions, as part of the Garden State
Guarantee initiative, are also required to provide reduced tuition prices, i.e., a net price
guarantee of $7,500, for students with adjusted gross income between $65,001 and $80,000
and maintain certain levels of financial aid that the institution provides.
• Question: Please discuss how this initiative fits the State Plan for Higher
Education and the Office of the Secretary of Higher Education’s projection for
higher education attainment overall and in target areas of specific academic
achievement such as human services, allied health, and science, technology, and
mathematics. What job markets is the plan targeting to fill and why?
The Garden State Guarantee (GSG) aligns with the goals of the State Plan for Higher Education, Where
Opportunity Meets Innovation, which commits to increasing educational attainment to 65% of working
age New Jersey residents having a high-quality credential (certificate or degree) by 2025. GSG builds
on the recommendations from the Making College Affordable working group, which consisted of
academic and business leaders, faculty, staff, and students, that collaborated to address affordable and
predictable tuition costs by creating an institutional workbook to assist in developing a pricing
guarantee for students.
After working closely with the senior public institutions this past fall, the FY2023 Outcomes-Based
Allocation (OBA) includes premiums for up to five priority areas, which includes graduating with a
degree in STEM or health care fields. While STEM/Health care is weighted in the OBA, the Garden
State Guarantee can benefit all job markets by increasing the number of New Jersey residents with a
high-quality credential in order to meet the State’s projected workforce demands. The OBA also creates
a transparent and rational funding model for institutions to help stabilize funding and align with state
needs for the workforce.
1Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
• Question: Please provide a table detailing the calculation of each senior
public institution’s appropriation for the Outcomes-Based Allocation, including,
separately, the amount of each institution’s allocation that is dedicated to
implementing the Garden State Guarantee. What programmatic factors were
used in determining the necessary appropriation for the implementation of the
Garden State initiative through each senior public institution’s Outcomes-Based
Allocation?
The table below shows the calculated GSG cost that OSHE and HESAA developed using 2020-21
academic year financial aid data submitted by each senior public institution according to the parameters
developed by the GSG Implementation working group (i.e., a $0 net price for students/families with
Adjusted Gross Income (AGI) below $65,000 and a net price guarantee of not more than $7,500 for
students/families with AGIs between $65,001-$80,000). Based on the institutional data submitted,
OSHE and HESAA calculated an estimated 19,264 students with AGIs between $0 and $80,000 have
some amount of unmet need remaining after counting all their federal, state, and institutional aid. The
total estimated amount of unmet need for these students in their third and fourth years under GSG, is
~$113.8 million.
Of this total cost needed to cover year 3 and 4 students under GSG for the Fall 2022 and Spring 2023
semesters, $45 million is covered under the State’s FY2022 investment in GSG through the Outcomes-
Based Allocation (OBA), and another $68.8 million is covered through FY2023 OBA funding
(comprised of $45 million from continuing the prior year’s investment plus an additional $23.8 million).
We used the revised OBA funding rationale to calculate the institutions’ allocation share of the
estimated $113.8 million to determine each institution’s expected GSG implementation costs (column
D). Institutions also provided OSHE with their estimated GSG costs based on their predictions for
students in years 3 and 4 during the coming academic year. An additional $20 million increase in
operational aid is allocated to institutions in FY2023 through the OBA rationale, and these funds are
also available for institutions to use in support of the Garden State Guarantee. Also, a separate line item
provides up to $10M in FY2022 and FY2023 GSG implementation funds for OSHE to assist institutions
with unanticipated costs.
Table 1- Outcomes-Based Allocation Dollar Amounts
FY2022 GSG FY 2023 OBA Total FY 2023 Expected GSG Share of the OBA OBA Non-GSG
Reserve Allocation (with FY2022 Cost FY2023 Allocation in Allocation in
Allocation Amount ($000’s) reserve) OBA support of GSG FY2023
Allocation (D) FY2023
(A) (B) Rounded to (includes FY2022 (F)
($000’s) reserve)
(C) (E)
Kean University $4,094,881 $11,795,915 $15,891,000 $12,626,820 $12,533,211 $3,357,585
Montclair State
$5,669,878 $14,775,937 $20,446,000 $13,397,542 $16,239,998 $4,205,817
University
New Jersey City
$2,429,708 $7,077,549 $9,507,000 $6,203,986 $7,492,706 $2,014,551
University
2Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
New Jersey
Institute of $2,564,691 $8,319,225 $10,884,000 $8,198,325 $8,515,935 $2,367,981
Technology
Ramapo College of
$1,305,030 $3,352,523 $4,658,000 $4,149,263 $3,703,292 $954,261
New Jersey
Rowan University $4,410,216 $11,423,414 $15,834,000 $10,768,071 $12,582,074 $3,251,556
Rutgers University-
$1,935,141 $5,339,203 $7,274,000 $5,154,050 $5,754,595 $1,519,749
Camden
Rutgers University-
$10,215,078 $28,558,534 $38,774,000 $22,488,650 $30,644,722 $8,128,890
New Brunswick
Rutgers University-
$3,824,913 $10,678,408 $14,503,000 $8,935,176 $11,463,823 $3,039,498
Newark
Stockton University $2,384,900 $6,456,712 $8,842,000 $11,403,458 $7,003,776 $1,837,836
The College of New
$1,395,206 $3,352,523 $4,748,000 $3,614,943 $3,793,468 $954,261
Jersey
Thomas Edison
$1,800,157 $4,966,700 $6,767,000 $706,971 $5,353,137 $1,413,720
State University
William Paterson
University of New $2,970,203 $8,070,889 $11,041,000 $6,177,288 $8,743,797 $2,297,295
Jersey
Total $45,000,000 $124,167,532 $169,169,000 $113,824,544 $133,824,532 $35,343,000
• Question: Please discuss the impact the Garden State Guarantee initiative had
on the senior public institutions’ enrollment in terms of the number of students
and the curricula as well as the early projection of attaining the postsecondary
education attainment goals to date.
The Garden State Guarantee prioritizes making college more affordable and financially predictable for
all students and provides a clear and transparent message to all students across the State that college is
a feasible option for them.
The most recent data shows New Jersey’s attainment rate at 57%. In order to reach our attainment goal
of 65% of working age New Jersey residents having a high-quality credential (certificate or degree) by
2025, the State is working on aggressive long-term strategies, such as the implementation of the GSG,
and aiming to better equip New Jersey residents with the tools necessary to compete in the workforce.
These efforts require significant focus on increasing enrollment and completion among populations that
have been historically disadvantaged. The GSG directly aligns with these foci, particularly as equity
gaps in affordability and attainment were exacerbated by the COVID-19 pandemic and many
institutions saw declines in enrollment.
In FY2022, the initial GSG funds served as a down payment, so institutions could begin to build
capacity and market the program to eligible students. Over the summer and fall, OSHE and HESAA
worked closely with institutions to establish operational definitions and program implementation
3Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
parameters based on the GSG program guidelines in the FY2022 Appropriations Act language. The
program will be fully implemented in fall 2022 at four-year public institutions for eligible third-year
(students with 60-89 accumulated credits) and fourth-year students (students with 90-126 accumulated
credits). OSHE and HESAA will work with institutions to monitor enrollment and program uptake in
fall 2022 and spring 2023.
• Question: What if any, oversight, monitoring, and assistance will the Office
of the Secretary of Higher Education undertake to ensure that the senior public
institutions of higher education are implementing the Garden State Guarantee
initiative in accordance with the intent of the initiative? Will the institutions be
required to sign a memorandum of understanding or other document signifying
their agreement to the revised provisions of the Garden State Guarantee
initiative?
In FY2022, the institutions agreed, by an executed memorandum of understanding (MOU), to adopt
and publicly offer the Garden State Guarantee to eligible students and to execute the program in
FY2023. In FY2023, OSHE will execute a MOU for the OBA with each senior public institution that
outlines the tenets for receiving the increase in operational aid to implement the Garden State
Guarantee.
Each four-year institution is also required to submit an annual report to OSHE and HESAA that
provides data at an individual student unit record level, detailing the amount of federal, state, and
institutional financial aid granted to each undergraduate student for each academic semester. This data
will assist in determining the final cost for the program in FY2023 and inform future budget requests.
2. The FY 2023 Governor’s Budget includes $5.0 million to be allocated to four-year
public institutions by the Secretary of Higher Education to offset unanticipated costs
associated with the Garden State Initiative, the same amount as appropriated in the FY 2022
Appropriations Act. In addition, the FY 2023 Governor’s Budget includes a language provision
that would provide carryforward authority for unexpended account balances.
• Question: Why is there a need to appropriate an additional $5 million to
offset unanticipated costs associated with the Garden State Initiative when these
costs should theoretically be calculated through the Outcomes-Based Allocation?
Please provide the unanticipated cost estimate for the Garden State Initiative and
please illustrate how the estimate increased from $5 million in FY 2022 to up to
$10 million in FY 2023,
The additional implementation funding will ensure that each senior public institution receives financial
support to fully implement the GSG and OSHE can direct funds toward general statewide
implementation and awareness activities. While the anticipated costs were calculated using data
provided by the senior public institutions, they are ultimately only projections for enrollment. Final
enrollment numbers may differ from our projections, especially as more students become aware of the
program.
4Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
3. The FY 2023 Governor’s Budget proposes a new appropriation of $3.0 million for the
Some College, No Degree program. The funds will be provided to institutions of higher
education to reengage adult learners and support adult and nontraditional students with
degree attainment.
• Question: Please discuss how this program fits into the broader picture of the
State Plan for Higher Education and what job market or sector of the economy is
anticipated to benefit from this program?
The State Plan for Higher Education identified two key ways to accelerate New Jersey’s progress
toward achieving our attainment goal of 65% of working-age adults having a high-quality degree or
credential by 2025: 1) increasing degree completion among all students, and 2) increasing the number
of working-age adults who re-enroll and complete their degree or credential. As noted in the State Plan,
there are significant and tangible benefits to obtaining a higher education degree or credential. In 2020,
a college graduate with a bachelor’s degree enjoyed median earnings of $32,381 greater than those with
only a high school diploma.
Many of today’s college students are not the traditional-aged student matriculating from high school to
college. In fact, 37% of higher education students nationally are 25 and older, and 75% work while
completing their degree. By helping institutions shift their focus to the growing population of adult
learners, institutions can re-imagine the types of supports that meet their differing needs.
Reenrolling anywhere from five to ten percent of this “Some College No Degree” population before
2025 would help New Jersey reach its attainment goal, benefiting individuals in the job market and
boosting the entire economy by increasing the number of individuals with the credentials that employers
seek.
• Question: Please describe how the Office of the Secretary of Higher
Education plans to distribute funds under this program. Will funds be distributed
according to a formula developed by the office or will institutions apply for
funding? If available, please provide estimated amounts of funding for each
institution.
The funding for this initiative is not for a financial aid program for adult learners. Funding will not be
distributed through a formula but instead utilized to incentivize institutions to focus on this priority
population by creating a more cohesive statewide approach to addressing barriers adult learners face,
as well as barriers that institutions face in reaching out to these students.
• Question: How many individuals in the State are currently estimated to have
some college education but no degree? Please provide examples of specific
activities and efforts that will be supported to reengage these individuals using
funds distributed under this appropriation.
The State has approximately one million residents with some college credits per the Lumina Stronger
Nation report, but no postsecondary degree. This initiative will focus on three nationally recognized
best practices:
5Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
1) identifying and communicating with prospective students;
2) providing personalized reenrollment supports, such as coaching, to help students navigate
the complexity of reenrollment; and
3) reducing the amount of time it takes for returning students to complete their degree,
including by awarding course credit for previous relevant work experience.
The State will help identify students and amplify the value of completing a postsecondary credential,
as well as raise awareness regarding new programs and partnerships these students may be eligible for
since they last enrolled, such as the Community College Opportunity Grant (CCOG) program and GSG.
For students who are interested in returning to school, personalized reenrollment supports that make
the reenrollment process less complex and confusing can increase the likelihood that they will
successfully matriculate--from supporting the students in filing for financial aid to navigating course
registration.
Finally, we recognize that work experience is valuable, so we will provide technical assistance to
institutions on how to increase the awareness and number of students successfully receiving credit for
relevant prior learning.
4. The Educational Opportunity Fund program supports educationally and economically
disadvantaged students for undergraduate and graduate study at public and private
institutions of higher education in New Jersey. The program, which is administered by the
Secretary of Higher Education, consists of Opportunity Grants and Supplementary Education
Program Grants. Opportunity Grants are awarded to students during the academic year to
assist them in meeting college expenses, such as fees, books, room, board, and transportation.
Summer program grants are available for incoming students who are making the transition to
college. Supplementary Education Program Grants are provided to the public and private
institutions to provide various campus outreach and support services, including tutoring,
counseling, supplemental instruction, and leadership development. The institutions are
required to provide matching funds as a condition for the receipt of grants.
The FY 2023 Governor’s Budget proposes a $1.0 million increase in the appropriation for
Opportunity Program Grants and maintains the same amount for Supplementary Education
Program Grants, compared to the FY 2022 adjusted appropriation.
• Question: How have the Educational Opportunity Program grants affected
student performance and college readiness?
The funding that EOF receives allows students to enroll in courses throughout the Academic Year,
including summer. Coupled with the comprehensive curricular and co-curricular supports that are
provided, students who take courses year-round can reduce their time to degree completion and improve
their preparedness for higher-level courses. Over 91% of program participants are able to maintain
satisfactory academic progress, which in turn allows them to retain their eligibility for Pell, TAG, and
other forms of financial aid. Therefore, EOF grants have positively impacted retention, and the EOF
summer enrichment programs in math development, medical/dental school, and law school preparation,
6Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
among others, help incoming students to become more college-ready, complementing the NJ GEAR
UP/College Bound program, also administered by OSHE.
• Question: a. How much value does an opportunity grant provide to a student
who needs to defray summer program costs, tutoring costs, expenses for the
purchase of books, or other college expenses? b. Will an opportunity grant pay
for a summer program or a semester worth of tutoring services? c. What are the
anticipated minimum and maximum academic year Opportunity Grant award
amounts for FY 2023 for students attending: (1) county colleges; (2) public four-
year institutions of higher education; (3) public research universities; and (4)
independent colleges and universities and how do they compare with FY 2022?
a. The EOF grant plays a significant role in defraying student costs during the summer program and
throughout the academic year. EOF summer programs typically cover the full cost of the course(s)
students enroll in while providing tutoring assistance, books, laptops/tablets, book bags, and other
educational materials and supplies. In addition, for institutions that offer on-campus housing, EOF
provides funding support for students to remain on-campus during the summer.
b. Yes. EOF covers the cost of tutoring for students during the summer, winter, and academic year.
c. The anticipated FY2023 academic year minimum amounts will remain at $100 per semester and
$200 annually. The anticipated FY2023 academic year maximum amounts appear in the table below.
Sector FY2022 Academic Year Anticipated FY2023
Max. Academic Year Max.
Community Colleges $1,300 $1,600
State Colleges and Universities $1,650 $1,950
Public Research Universities $1,650 $1,950
Independent Institutions $2,750 $3,050
• Question: Please provide the matching funds amount anticipated to be
contributed for FY 2023 by institutions of higher education under the
Supplementary Education Program Grants program funds and how do they
compare with FY 2022?
The anticipated FY2023 Supplementary Education Program Grant allocations appear below. The
amount of Supplementary Education Program Grant funds and institutional matching funds from
FY2022 to FY2023 remains unchanged. The institutions match their program allocations dollar for
dollar.
7Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
8Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
5. On July 12, 2021, the Governor and the Secretary of Higher Education announced the
awardees of $1.0 million in federal funding from the second round of the Governor’s
Emergency Education Relief Fund for the Hunger-Free Campus Grant Program. The grant
program was established pursuant to P.L.2019, c.89. The funds were awarded to 11 public
institutions of higher education that received a “Hunger-Free Campus” designation during the
2020-2021 academic year. According to the announcement, grant funding is used to address
student hunger, leverage more sustainable solutions to address basic food needs on
campuses, raise awareness of current campus services, and continue building strategic
partnerships at the local, State, and national levels to address food insecurity among students.
The FY 2023 Governor’s Budget proposes $1.5 million in State funds for the program.
• Question: To the extent possible, please discuss the early effects the program
has had on the student population in terms of absenteeism, student health
outcomes, student performance, and student and campus mood.
The Hunger-Free Campus Grant Program allowed campuses to provide supplemental support to combat
food insecurity. The program aimed to address student hunger and provided grant funding to 11
campuses to address basic food needs. Campuses addressed these needs by elevating awareness around
students’ basic food needs and insecurities, and more importantly, provided a range of options for
students to have access to food, meals, and community and campus resources.
• Question: Please provide information describing the delivery of basic food
needs on campus and what it took for each public institution of higher education
9Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
that was awarded funds for the Hunger-Free Campus Grant Program to deliver
services. How were the allocation amounts determined for each institution?
Campuses responded with an array of delivery modalities to offer services for basic food needs. The
modalities included the establishment of food pantries, and in some instances, ramping up existing
pantries, partnerships with community agencies and local businesses, distribution of meal
cards/vouchers to local eateries, grocery stores, food distribution companies, local food banks, and
campus dining facilities. Additionally, campuses worked with the New Jersey Supplemental Nutrition
Assistance Program to assist students with enrolling in and utilizing the program. Campuses also
responded by creating task forces/committees with students, key faculty, and staff. Divisions of Student
Affairs, the Volunteer Resource Center, Financial Aid, Campus Business Services, and faculty
contributed to the delivery of services for students.
In FY2022, institutions had to demonstrate their qualification for the hunger-free campus designation
and were able to apply for funding in the amount of $40,000-$100,000, with a proposed budget that
included a detailed justification for each fund. Based on the limited funding available, institutions that
met the designation had their application reviewed by an evaluation committee comprised of OSHE
and partner state agency staff. Funding was then awarded based on scoring until all funds for FY2022
were depleted.
• Question: Please describe the process by which public institutions of higher
education will apply for funds under this program for FY 2023. Does the Office
of the Secretary of Higher Education expect that more institutions will be
designated as hunger-free campuses, compared to FY 2022?
Should funding for the Hunger-Free Campus Grant Program be appropriated in the final FY2023
budget, administration of this program is likely to mirror the process successfully used in FY2022.
In FY2022, the number of institutions that applied and qualified for the Hunger-Free Campus Grant
exceeded OSHE’s capacity with available funding to provide grant awards to all eligible applicants.
Many institutions also utilized their institution’s federal COVID relief funds to address food insecurity,
which may result in more institutions now meeting the State’s threshold for the Hunger-Free Campus
designation. This grant previously was only open to public institutions as identified in the Hunger-Free
Campus Act (P.L. 2019, c.89). In a fall 2021 statewide survey from OSHE, 51% of respondents
indicated that they had experienced major or moderate struggles to afford food over the past year due
to the pandemic. The increase in funding will allow OSHE to expand the eligibility criteria and award
an increased number of grants to help institutions address student hunger and food insecurity on
campus.
6. The FY 2023 Governor’s Budget recommends $35.0 million in Fringe Support for Public
Research Institutions of Higher Education, representing an increase of $25 million from the FY
2022 adjusted appropriation. Proposed budgetary footnote language stipulates that fund
under the appropriation will be distributed based on a funding rationale determined by the
Secretary of Higher Education. The funds will be used to offset fringe benefit costs charged to
10Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
federally funded research programs and activities in which the public research institutions
engage.
The table below depicts the amount of funding that each public research university received
under the FY 2022 appropriation.
Public Research Institution of Higher FY 2022 Allocation of Fringe Support for
Education Public Research Institutions of Higher
Education
Rutgers, the State University $7,304,000
New Jersey Institute of Technology $1,065,000
Rowan University $993,000
Montclair State University $638,000
TOTAL $10,000,000
• Question: Please discuss the reasons for the increase in the fringe benefit
costs charged to federally funded research programs in FY 2023 necessitating an
increase in State funding. What exact factors had the most impact on the change
in the fringe benefit costs? Without the increase in State funding to offset fringe
benefit costs charged to federally funded research programs, how would the
senior public institutions research activities be affected qualitatively and
quantitatively?
While there are many factors that impact the State fringe rate, the cost of health benefits and post-
retirement benefits have the most impact on the change in the fringe rate. The increase in State funding
reduces the amount of federal research dollars that must go toward the cost of fringe and will make IHE
applications more competitive.
• Question: What goes into the determination by the Secretary of Education in
establishing the formula for the distribution of the fringe benefit reimbursement
to senior public institutions? Is the determination based on the size of the
research programs? Please discuss. How much funding will each institution
receive for fringe benefits in FY 2023 under this appropriation?
The Office of the Secretary of Higher Education, in coordination with the Office of Management and
Budget and the Governor’s Office, met with the public research institutions to explore potential
solutions and the allocation formula for the $10 million that public research institutions requested in
FY2022. It was determined that the number of full-time equivalent employees (FTE), along with data
from the National Science Foundation Higher Education Research and Development (HERD) survey
to account for research and development (R&D) expenditures, should be factors of consideration. Thus,
the FY2022 fringe allocation used a formula that weighted 75 percent for FTE and 25 percent for
FY2019 HERD R&D expenditures (HERD data has since been updated with FY2020 numbers). A
similar rationale will be used for any FY2023 fringe benefit allocation.
11Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
7. P.L.2021, c.425 requires the Office of the Secretary of Higher Education to distribute
grants for county colleges to establish college-based adult centers for transition for individuals
with disabilities. The purpose of the centers is to coordinate and integrate existing resources
for individuals with disabilities and to ensure that these individuals receive mentoring, job
coaching, skill training, and any other appropriate wrap-around services to help them make a
successful transition into employment and independent living, as appropriate. The FY 2023
Governor’s Budget recommends a $4.5 million appropriation to continue funding for this
program. As of April 7, 2022, no funds have been expended from the FY 2022 appropriation.
• Question: What does the Office of the Secretary envision for the roll-out of
this program and what does the Office of the Secretary expect the adult centers
to “look like” and what services will be provided? Will these centers be designed
and integrated like an academic department? How will the program coordinate
and integrate existing county and State-based programs and resources to
provide mentoring, job coaching, and skill training to help individuals with
disabilities transition from secondary to post-secondary school employment and
independent living?
OSHE anticipates the rollout of this program to vary across county colleges as each institution has the
discretion and flexibility to determine the services best suited for their unique population of students.
We also recognize that each county college may be at a different point in developing and implementing
these services—as 11 of the 18 county colleges currently offer services to intellectually and
developmentally disabled students.
In order to uphold our commitment to ensuring all students have access to a supportive and inclusive
learning environment, we want to ensure that these adult centers for transition exist as full community
programs. Students with intellectual and developmental disabilities may be integrated into other
academic departments while receiving additional services (like mentoring and skill training) to meet
the demands and rigor of their academic program. Institutions may also work to develop and/or expand
current career pathways and training opportunities for this population of students.
To coordinate and integrate existing county and State-based programs offered to this population of
students, OSHE has held numerous meetings with the Department of Human Services’ Division on
Developmental Disabilities and the Department of Labor and Workforce Development’s Division of
Vocational Rehabilitation Services to better understand the current landscape of services offered.
Additionally, we’ve met with the Arc of New Jersey and the Rutgers Boggs Center to learn more about
county-based services and training opportunities for faculty and staff. As we work to launch these
centers across the State, we are committed to ensuring the necessary oversight and collaboration is
provided to uphold the intent of this statute. We anticipate regular collaboration across State and county
agencies, as well as with private sector partners to further develop opportunities for students with
intellectual and developmental disabilities to find and secure meaningful and high-paying careers.
• Question: When does the Office of the Secretary of Higher Education expect
to begin distributing grants for county college-based adult centers for this
program? What criteria does the office expect to use in the distribution of grants,
12Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
and what level of funding could each county college expect to receive to support
the establishment of an adult-based center for transition for individuals with
disabilities?
OSHE anticipates distributing these funds by the end of FY2022. This statute requires all county college
to designate an adult center for transition—permitting county colleges to partner with one another to
satisfy this requirement. With this in mind, OSHE has created a grant funding opportunity that makes
every county college eligible for $250,000. After numerous conversations with stakeholders and experts
in this field, this was deemed the adequate and necessary amount to either launch new programs or
further develop current programs. OSHE is currently accepting proposals from county colleges and is
specifically looking at the county colleges’ goals/mission, data reporting, sustainability, budget
justification, and any anticipated partnerships related to the implementation of these centers.
8. Pursuant to budget bill language, the Career Accelerator Internship Program is funded
from an allocation of $22.5 million from the Department of Labor and Workforce
Development’s Workforce Development Partnership Fund. The Workforce Development
Partnership Fund funds various career-focused programs.
The Career Accelerator Internship Program provides funding to employers interested in
employing undergraduate interns from the State’s institutions of higher education. The
program reimburses participating employers for certain wages paid to the student interns.
Administration of the Career Accelerator Internship Program is managed by the Office of the
Secretary of Higher Education pursuant to a Memorandum of Understanding with the
Department of Labor and Workforce Development through which $1.5 million was transferred
to the Office of the Secretary of Higher Education to operate the program. However, as of
April 7, 2022, none of the $1.5 million transferred to the Office of the Secretary of Higher
Education has been expended.
• Question: a. How does the Career Accelerator Internship Program fit into the
State Plan for Higher Education? b. What is the success rate of the program in
terms of internship placement and the subsequent placement of college
graduates in the workforce? c. Please describe some of the categories of
internships where the college students are being placed. d. How effective is the
program and can it be expanded to other sectors of the job market?
a. As stated in the State Plan for Higher Education’s Student Bill of Rights “Every student in New
Jersey should have the opportunity to work with an employer, conduct meaningful research supervised
by a faculty member, or access some other form of experiential learning before graduation.” The intent
of the Career Accelerator Internship Grant Program (CAIGP) is to facilitate innovative connections
between New Jersey students, employers and institutions to create a mutually beneficial relationship
through internship opportunities and ensuring there is an educational impact for all students
participating in the program. The CAIGP is utilizing two different approaches; 1) providing grant
funding to employers for paid internship opportunities with New Jersey college students, and 2)
providing grant opportunities for IHEs to support efforts to connect students and employers. Providing
13Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
funding to both employers and institutions will allow students to identify and secure experiential
learning opportunities that might not have been otherwise available to them.
b. The success rate will be determined at the conclusion of this summer’s program.
c. The primary types of internships selected thus far are in the following areas: construction and energy,
STEM, financial services, health care, leisure and hospitality, retail, and general business services.
d. During this phase, we have seen engagement from employers across many industry sectors. The
feedback from targeted industries this year bodes well for expansion to other fields. This demonstrates
that other industry sectors have a need for funding internship opportunities related to New Jersey’s key
industry sectors.
• Question: a. What is causing the delay in the administration of the program
and what can be done to remove the barriers? b. Please describe the Office of the
Secretary of Higher Education’s responsibilities in administering the Career
Accelerator Internship Program. c. Is it expected that the office will continue to
administer the program in FY 2023?
a. OSHE has launched the CAIGP and intends to release all funds for the program by June 30, 2022.
OSHE plans to evaluate the CAIGP to build upon future iterations of the program.
b. OSHE is responsible for developing relationships with New Jersey employers that have a desire to
provide educational internship opportunities for students. Recruitment of employers to participate in
the program was accomplished by conducting extensive outreach to chambers of commerce, business
alliances, and companies located across New Jersey. OSHE has developed an application process for
employers to participate in the program and has vetted all available internships. We have established
the necessary collaboration with the Department of Labor and Workforce Development (DOL) to verify
employers and OSHE has maintained consistent communication with participating employers.
OSHE is facilitating a connection between institutions and employers by hosting educational webinars
and establishing a resource repository to support connections and recruitment campaigns. Once all
interns have been hired, OSHE will provide technical assistance on best practices. Additionally, OSHE
plans to provide student-focused technical assistance for interns that are program participants.
OSHE will collect interim and final status reports that assess the employers’ engagement with the
interns and the interns’ skill development. Employers are also responsible for submitting a final budget
report to OSHE. Additionally, OSHE has provided a grant opportunity for institutions to build
innovative connections with employers focused on recruiting students for internship opportunities.
c. Based on ongoing conversations between DOLWD and OSHE, the program is expected to continue.
• Question: How many students and employers currently participate in the
Career Accelerator Internship Program?
14Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
There are 100 employers participating in the CAIGP. Based on the employers’ applications,
approximately 342 students should have internship opportunities with employers participating in the
program. As of April 8, 2022, 120 students have been hired for summer internships with 29 employers.
OSHE anticipates that employers will continue to aggressively recruit throughout the remaining spring
semester.
9. On November 16, 2021, the Governor announced that the State will release a total of
$400.0 million in capital facilities grant funding through four statutory programs: 1) the Higher
Education Capital Improvement Fund; 2) the Higher Education Facilities Trust Fund; 3) the
Higher Education Equipment Leasing Fund; and 4) the Higher Education Technology
Infrastructure Fund. The four programs generally provide funding for the preservation,
renewal, and construction of facilities and equipment at New Jersey’s institutions of higher
education. The announcement from the Governor stated that a request for proposals would
be made available in the first quarter of 2022, and that applications for funding under the four
capital programs would be made available upon the issuance of the request for proposals.
• Question: When does the Office of the Secretary of Higher Education expect
that the request for proposals will be made available? When does the office
anticipate that institutions of higher education can begin submitting applications
for funding under the four programs? What are the most pressing capital needs
among the senior public institutions? Please describe in detail the process under
which institutions may receive funding under the four capital programs.
OSHE has been working with the Educational Facilities Authority to develop a joint solicitation of the
four bond programs. We anticipate that a Notice of Grant Availability (Notices) for each program will
be published in the May 2, 2022, edition of the New Jersey Register. In addition, the Notices will be
circulated directly to the institutions’ affinity groups (NJCCC, NJASCU, and AICUNJ) to ensure
visibility once the Notice is publicly available. Below is an outline of the current anticipated timeline
for the release of the Joint Solicitation and Application Window:
We anticipate releasing the joint solicitation in the summer and application in early fall.
This will be a competitive grant process and applications will be submitted electronically.
A committee designated by the Secretary will review applications. The evaluation of the applications
will be conducted pursuant to a rubric and then funding will be determined based on the availability of
funds and the merit of the applications submitted. A list of projects recommended for funding will be
sent to the Secretary from the review committee. The Secretary will determine which projects will be
recommended to the Legislature for funding. Full details as to the application process and evaluation
criteria will be provided in the Joint Solicitation, which is still under development.
While OSHE provides oversight of the administration of these four bond programs, the agency does
not have a mechanism by which to track the specific capital needs of the institutions. Senior public
institutions submit requests annually regarding their needs to the Capital Planning Commission. This
past year, the 13 senior public institutions submitted over $3 billion in capital funding requests.
15Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
These four bond programs have very specific statutory requirements for funding. Institutions must
apply for funding within the parameters of the programs and funding will be awarded based on the
quality of the applications. OSHE intends to provide grants to address as many critical needs as
possible.
Higher Education Student Assistance Authority
1. The Community College Opportunity Grant (CCOG) provides tuition- and fee-free
county college education for low-income students. Present guidelines allow for any student
taking at least six course credits per semester to receive free tuition through the CCOG
program, provided that the student’s annual adjusted gross income is less than $65,000 and
the student remains in good academic standing.
The FY 2023 Governor’s Budget proposes adding a partial CCOG award for students
whose annual adjusted gross income is between $65,001 and $80,000 as long as the student
meets all other CCOG eligibility criteria. The proposed budget recommends an addition $8.1
million to support the proposed change in eligibility.
• Question: Please discuss the observed outcomes of this program on the
community college student population. Has the authority experienced an
increase in the number of course credits taken per student per semester and how
is that affecting educational outcomes with respect to the State Higher Education
Plan? Is this program changing community college enrollment and outreach? Is
it encouraging students who would not otherwise apply to apply? What are the
intended benefits of this program from the Higher Education Assistance
Authority’s perspective regarding post-education opportunities for these
students who may not have been able to receive a post-secondary education
without the program?
The Community College Opportunity Grant (CCOG) program has made college more affordable for
tens of thousands of students – both adult learners and recent high school graduates – since it was first
offered in spring 2019. By offering a clear net price guarantee, the program helps to counteract the
“sticker shock” of published tuition rates that deter some students from even considering college.
Evidence from the past several years suggests that the availability of this tuition-free “college promise”
has mitigated many students’ challenges in pursuing postsecondary education during the pandemic,
preventing the overall decline in county college enrollment from being more severe than it otherwise
might have been. While statewide enrollment at New Jersey’s community colleges declined by more
than 17 percent between 2019 and 2021, the number of students covered by the program increased
significantly year-over-year, from just over 10,000 to more than 13,000 students last year, and based
on updated data, we project a slight increase in the number of CCOG recipients in the current year.
• Question: Please describe the method of determining the amount of a
student’s CCOG award if their annual adjusted gross income is between $65,001
and $80,000. For students with an annual adjusted gross income between
16Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
$65,001 and $80,000, will the amount of the CCOG award be determined by
income, number of credits, or some other metric, or will the amount of the CCOG
award be the same for all students in this income bracket?
The proposed expansion in Governor Murphy’s Fiscal Year 2023 budget will align the Community
College Opportunity Grant program with the income eligibility thresholds in the Garden State
Guarantee. This additional funding will enable the Authority to offer partial CCOG awards to students
with adjusted gross incomes (AGI) between $65,001-$80,000, making this group of students eligible
for an award to be capped at 50 percent of the maximum Community College Opportunity Grant
amount established for students with AGIs between $0 and $65,000. This enhancement will remedy
the “eligibility cliff” in which students with incomes up to $65,000 now have 100 percent of tuition
covered, but students with AGIs exceeding $65,000 pay the full price of community college (typically
between $6,000 to $8,000 per year for full-time students). All eligible students in the $65,001-$80,000
AGI range can receive the same potential Community College Opportunity Grant, up to 50 percent of
their college’s CCOG maximum award amount, which will be awarded on a last-dollar basis after first
applying any federal, state, or other grants and scholarships the students receive.
• Question: How many students would be eligible to participate in the CCOG
program under the proposed new guidelines? How did the Higher Education
Student Assistance Authority arrive at the $8.1 million estimate to support the
newly eligible students? Does the authority anticipate that the increase in CCOG
funds will be sufficient for all students eligible to participate in the CCOG
program under the proposed new guidelines?
HESAA projects that the Fiscal Year 2023 recommended budget will provide CCOG awards to more
than 20,000 students in academic year 2022-2023. This includes a projection that more than 7,000
students with AGIs between $65,001-$80,000 will receive partial CCOG awards as described above.
This estimate is based on an analysis of income data from currently enrolled community college
students in New Jersey. The above-cited numbers count all unique students, rather than pairing fall and
spring awards in a composite figure of “full-year equivalent awards” that undercounts the number of
actual students, because some students receive an award in only one term per year. Based on these
assumptions, we anticipate that the recommended funding level will be sufficient to cover all eligible
students.
2a. The FY 2023 Governor’s Budget recommends a new $4.0 million appropriation for the
Community College Opportunity Grant for County Vocational Schools Pilot program. The
appropriation would expand upon the current Community College Opportunity Grant
program to provide financial aid awards to students enrolled in postsecondary career and
technical education courses offered by county vocational schools in partnership with county
colleges. Students would be eligible for financial aid under this appropriation if the career and
technical education course in which the student is enrolled is part of a curriculum leading to
a degree and if the course is eligible for federal student aid.
• Question: Is the intent of this program to provide students with not only a
vocational-technical education degree, but also an academic degree, or is the
17Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
intent to shift vocational-technical students from vocational-technical programs
and into academic programs?
We anticipate that the adult postsecondary career and technical programs of study to be covered by this
pilot would offer shorter-duration certificates, not degrees. However, this program design would enable
students to earn stackable credentials by ensuring that they receive credits that could count toward a
degree.
The pilot will encourage community colleges and county vocational schools to partner in assisting adult
learners to complete non-credit bearing courses to obtain specialized career certifications, and then
awarding students college credits upon completion of each program. In cases where adult postsecondary
career and technical education programs at county vocational schools are eligible for federal student
aid (e.g., Pell grants), a last-dollar Community College Opportunity Grant could be used to fill in any
gap after applying all other grants to the student’s cost of tuition, thus eliminating or reducing the need
for eligible students to borrow student loans to take these courses.
• Question: Please describe the eligibility criteria for the Community College
Opportunity Grant for County Vocational Schools Pilot Program. Outside of the
requirements for enrollment in a county college, would student eligibility for
funds under this appropriation mirror that of the current Community College
Opportunity Grant Program? Would otherwise eligible students with annual
adjusted gross income between $65,001 and $80,000 be eligible for financial aid
awards under this appropriation, as is the case under the proposed appropriation
for the broader Community College Opportunity Grant program?
The eligibility criteria for the Community College Opportunity Grant for County Vocational Schools
Pilot will mirror the existing policies and procedures used to determine eligibility for CCOG. To verify
that students meet the income eligibility criteria, applicants will be required to complete the Free
Application for Federal Student Aid (FAFSA) or the New Jersey Alternative Financial Aid Application.
The award amounts will be determined after first applying all other sources of grants and scholarships
that students receive. The pilot program’s last-dollar awards will cover up to the full cost of tuition for
eligible students with AGIs between $0 and $65,000. Eligible students with AGIs between $65,001 and
$80,000 will be eligible for awards of up to 50 percent of the maximum grant for students with AGIs
of $65,000 or less.
2b. FY 2023 evaluation data show that the number of Community College Opportunity
grants is recommended to increase by 75 percent in FY 2023, from 9,697 to 16,919 and grant
funding is recommended to increase by almost 30 percent, reducing the average award from
$2,784 to $2,072.
• Question: What explains the reduction in the average value of the grant
award? How will this change the value of the award relative to the education
received?
18Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
The Evaluation Data on page D-303 of the Governor’s Fiscal Year 2023 Recommended Budget
includes approximately 7,000 “full-year equivalent” awards to students with AGIs between $65,001
and $80,000. Under the proposed expansion of the Community College Opportunity Grant program,
this group of students will be newly eligible for an award of up to 50 percent of maximum award.
Because this new group of awards will be in lesser amounts than the awards to students with AGIs
between $0 and $65,000, we expect that the overall average award amount will decline in academic
year 2022-23 when compared with academic year 2021-2022. The availability of partial awards for
eligible students in this higher income range will not impact the value of any individual award for other
eligible students. Note: for comparison purposes, the budget displays “full-year equivalent award” data,
which are composite figures derived by pairing fall and spring awards. This presentation undercounts
the number of actual students receiving financial aid in a given year, because some students receive an
award in only one semester.
3. P.L.2021, c.341 provides that certain students holding federal T and U visas are eligible
for State student financial aid. T visas are issued to certain individuals physically present in the
United States who are victims of human trafficking and have assisted law enforcement in the
prosecution of acts of trafficking. U visas are issued to individuals who have suffered
substantial physical or mental abuse as a result of having been a victim of criminal activity and
are helpful to law enforcement investigating or prosecuting the criminal activity.
• Question: How many students are expected to receive financial aid under
P.L.2021, c.341 under each type of visa?
HESAA does not anticipate a significant number of students to become newly eligible for financial aid
under the provisions of P.L.2021, c.341. Worldwide, the U.S. Secretary of State issues approximately
500 T visas and approximately 1,500 U visas each year. It is likely that only a small fraction of these
visa-holders are New Jersey residents, out of which an even smaller number might enroll at a New
Jersey college or university in any given year.
HESAA does not track specific information on students holding T and U visas. Students with these two
types of visas are already considered “eligible noncitizens” for purposes of federal student aid, and
under the new law, State aid eligibility will follow this pre-existing federal procedure. According to the
U.S. Department of Education, Office of Federal Student Aid (FSA)’s Federal Student Aid Handbook,
to be potentially eligible for federal aid “a student has to be a U.S. citizen, a citizen of the Freely
Associated States, or an eligible noncitizen.” The FAFSA does not ask what form of “eligible non-
citizen” documentation the applicant holds. Institutions of higher education are required to work with
the U.S. Departments of Homeland Security and/or Health and Human Services to verify eligibility for
students with this noncitizen status. For additional information, please see
https://fsapartners.ed.gov/sites/default/files/attachments/2019-08/1920FSAHbkVol1Ch2.pdf.
To what extent has working with this set of students led to finding other victims
who then are able to benefit from the program?
HESAA does not track this information. As noted above, the Federal Student Aid Handbook requires
institutions of higher education to verify the financial aid eligibility of a holder of a T or U visa through
the U.S. Departments of Departments of Homeland Security and/or Health and Human Services.
19Higher Educational Services FY 2022-2023
Discussion Points (Cont’d)
What are the early projections for the number of students who may become
eligible for student financial aid under the program and what are the
requirements for qualifying for a certain level of financial aid?
As noted above, HESAA does not anticipate a significant number of students to become newly eligible
for financial aid under the provisions of P.L.2021, c.341. Students holding a T or U visa will be
determined eligible for federal and State financial aid following the same policy, procedures, and
guidelines for State aid as all other students, including assessing their eligibility based on their FAFSA
records.
4. The FY 2023 Governor’s Budget recommends a 50 percent, or $2.5 million reduction in
the appropriation for the Pay It Forward Fund. The program provides interest- and fee-free
loans from a revolving fund to support low-income New Jersey career-seekers participating in
approved training programs. On July 21, 2021, the Higher Education Student Assistance
Authority Board approved Social Finance and the Higher Education Loan Authority of the State
of Missouri (MOHELA) as the program managers of the Pay It Forward Fund. The organizations
were chosen following a request for proposals process.
• Question: What is the status of this program? Why is the recommended FY
2023 funding for this program reduced by half and why have no funds been
expended for this program as of April 2022? What is the demand for this
program by the career seekers? Does the Higher Education Student Assistance
Authority anticipate that loans will be disbursed to individuals by the end of FY
2022? If not, why not and if so, how many individuals are anticipated to receive
loans and in what types of training programs are these individuals participating?
As participants have not yet begun training, no State funding has been expended to date. Since last
summer, the program manager, Social Finance, in collaboration with an interagency working group led
by the Governor’s office and including the Economic Development Authority, the Department of Labor
and Workforce Development, the Office of the Secretary of Higher Education, the Department of
Banking and Insurance, and the Division of Consumer Affairs, has conducted several months of in-
depth research, organized due diligence on more than a dozen prospective training providers, and
directed planning, program design, and development of the policies, procedures, and infrastructure
needed to support the program.
Social Finance is now in the final stage of its extensive due diligence in preparation for recommending
selected training providers for the initial phase of the program, and MOHELA is developing the
procedures and systems to originate and service Pay It Forward loans. Later this spring, we will
announce the training programs to be offered in the initial phase of the project, through training
providers with demonstrated effectiveness in achieving positive employment outcomes and preparing
participants for jobs with family-sustaining wages at in-demand occupations in the targeted industry
sectors of information technology, health care, and renewable energy. Once participants begin training,
the Pay It Forward Fund administered by Social Finance will originate zero-interest, no-fee Pay It
Forward loans to those participants and disburse funding to the training providers to pay their tuition.
Participants will repay their loans through an affordable share of their post-training incomes and
repayments from Pay It Forward loans will be recycled by the Fund to train subsequent cohorts of
participants.
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