Delaware U asks state for help covering increased health insurance premiums

The requests came during UD's annual presentation to the Joint Finance Committee in Dover. The JFC is hearing budget requests from many state agencies over the next few weeks and will decide on UD's requests as part of the overall budget process, with the full legislature expected to vote on the budget in late June. UD will present its capital budget requests this spring.

Gov. John Carney's operating budget proposal allocates a total of $146 million in state funding to UD.

UD President Dennis Assanis said Tuesday that skyrocketing healthcare costs are wreaking havoc on the university's budget. UD employees are on the state's healthcare plan, but UD covers the portion of the cost that would otherwise be funded by the state.

Last year, UD paid $80 million in healthcare costs, and that is projected to increase by $34 million next year, Assanis said, adding that the sudden and unexpected increase is forcing UD to take "draconian measures" to balance the budget.

"Mitigating the impact of this cost will require significant reductions in our programs and services," Assanis said.

UD is freezing hiring and plans to defer as many capital projects as possible, including the demolition of Christiana Towers. While this saves money in the short term, when UD eventually resumes these projects, their cost likely will have risen, Assanis added.

"We're always prepared to do our part. I don't want you to feel like we're looking for a bailout," Assanis told the JFC. "We're going to take significant measures...but at the same time, we need your help."

State Sen. Trey Paradee, chairman of the JFC, noted that all state agencies are "in the same boat" in dealing with significant health insurance increases.

"Rising healthcare costs have been a real issue for a few years, but my gosh, what's happened over the last several months is just an explosion," Paradee said. "Hopefully, we can come to some kind of resolution of how we address this and how we rein in some of these costs."

Assanis also asked the legislature to increase the amount of money allocated to the First State Promise program, which supports Delawareans attending UD. Carney's budget earmarks $7.5 million for the program, and Assanis asked the JFC to add an additional $1.7 million.

First State Promise covers all four years of tuition and fees for any Delaware student who is admitted to UD and whose family has an income of $75,000 or less. The aid is in the form of scholarships and grants that do not need to be paid back, but students who choose to live on campus still have to pay for room and board.

For families in the lowest income brackets – earning roughly $35,000 or less per year – the program and federal Pell Grants cover the entire cost of attending, including room and board.

UD allocates $15 million toward the program each year, in addition to the state's contribution. Assanis said that this year, 2,300 students – approximately one third of in-state undergrads – are benefiting from First State Promise.

"I'm asking for your help to ensure that First State Promise continues to meet the needs of Delawareans," Assanis told the JFC.

He also asked the committee to support the governor's recommendation for $1.4 million for the UD-DSU dual-degree program. The program allows students to earn a bachelor's degree in engineering at DSU and then attend UD for an additional year to earn a master's degree in electrical or computer engineering.

Beyond his budget requests, Assanis also discussed UD's commitment to free speech and the challenges posed by strong opinions on both sides regarding the Israel-Hamas war.

"It's probably the toughest moment we've lived through during my presidency," he said. "But I have to tell you that our community has shown unusual civility and respect. We can have the difficult conversations and dialogue. People have demonstrated in very peaceful protests. Both sides, everybody, has been civil. No fist fighting. People have taken this as an opportunity to learn."

State Sen. Laura Sturgeon pressed Assanis about transparency, citing concerns she's heard from faculty members about the UD Board of Trustees. The board holds two public meetings each year, but the carefully orchestrated events offer few surprises and no contentious votes. The actual decisions are made behind closed doors in committee meetings, which, under state law, are shielded from public view.

Assanis said he is proud of recent steps to increase transparency, including offering a brief public comment time at the beginning of board meetings and allowing the public to observe the annual board retreat.

Assanis was also questioned about UD's commitment to diversifying the student body. He noted that among in-state students, 12.8 percent are Black, 12.1 percent are Hispanic, 10.1 percent are Asian and 6.4 percent are biracial.

"That's a dramatic change from where I started, but I don't know think we're there," he said. "We still need to continue the efforts, especially when it comes to recruitment and retention of Black students."

Rodney Morrison, vice president for enrollment management, said last year's Supreme Court decision banning the use of affirmative action has forced UD to re-examine some of its admissions practices.

"We've been doing everything we can to stay legal and to make sure that we're as effective as we can be. That's certainly going to be a challenge for us and every school," Morrison said. "We know that we can continue to bring students of all backgrounds on campus and show them all the programs we have and affinity groups and all the things that are important for students, whether they are African American or otherwise. But the reality is, when we're reading applications, for the most part we don't know the background of the student unless they identify themselves in their essay."