1. Overview State Financial Challenges I. Chronic Under-investment
a. 46th of 50 states in per capita appropriations (49th per $1000 personal income)
b. 32nd of 50 states in fin. aid grant $ per population 18-24
II. Structural Deficit
a income tax reduced from 5.95%- 5.3%; Overall changes cost $1.4 billion
b. State constitution mandates balanced budget.
c. “Taxachusetts” phenomenon makes tax increases unlikely
III. The Crisis
a. Revenues plummet (FY10 deficit $4billion)
b. Enrollment at public campuses up as privates out of reach
c. ARRA provides some relief
Impact on Higher Education
Prior to crisis: severe underfunding of public colleges estimated at $555million (by formulas based on national standards and peer comparisons)
9.5% increase over 2 years leading up to recession under leadership of Gov. Deval Patrick
5.6% emergency mid-year cut, followed by 11.1% cut in FY10 budget proposal, leaving us 8% behind FY06 levels and threatening massive layoffs and significant fee increases
ARRA funds allow restoration to pre-cut FY09 levels, but deficit increasing and budget situation precarious

2. Background
The Public Higher Education Network of Massachusetts (PHENOM) is a coalition of students, faculty and staff from public colleges and universities. Initially an ad hoc organizing group for a Dec 2006 “Higher Education Summit” at UMass Amherst, PHENOM now has active chapters on about 15 of the 29 public campuses in Massachusetts. Numerous student governments and faculty/staff unions are involved, though for practical purposes we are a direct-membership organization.
Five founding principles:
Fund public higher education so it can serve the Commonwealth.
Make higher education affordable.
Make higher education accessible to all.
Hire more teachers, researchers, and staff.
Honor and expand democratic institutions of governance for public higher education.
Legislative Agenda determined each fall at the Annual Higher Education Summit

3. Foundation for Success
At first Higher Education Summit, presented Governor-elect Deval Patrick with “roadmap” document for public higher education. Many proposals, including free community college, were soon adopted by his administration.
Spring Rally and Lobby day: successfully pushed for a $2billion Higher Education Capital Bond Bill, general increase to operating budgets. In a one-week flurry of lobbying, filed and successfully passed an amendment to increase need-based financial aid funding by $3million.
Helped defeat Income Tax Repeal
Following onset of economic crisis, sharp fee-increase proposals and threats of massive layoffs, successfully pushed Gov. and Legislature to resolve ambiguity in ARRA spending guidelines and use funds to reverse worst of cuts.
The future:
Membership agitated by crisis, alliances with community organizations and legislators strong.