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Rutgers gets more expensive after vote to increase tuition by 2.9 percent

So the budget increased by 4.2 percent, it'd be nice to know what that increase went to.
 
The operating budget is 4.6 billion and the state chipped in 10%?

Seems lower than I remember
 
A lot of Rutgers' budget cannot be used to educate students. It is instead grant money (from the Federal government, most prominently) that must be used for specific research projects. Rutgers' bottom line benefits from these grants because the Federal government pays overhead costs to Rutgers. But it is not comparable to having the state chip in more money for the cost of instruction, which is what the state is supposed to do. State aid looks really bad as compared to the past. That's why tuition has to go up.
 
A lot of Rutgers' budget cannot be used to educate students. It is instead grant money (from the Federal government, most prominently) that must be used for specific research projects. Rutgers' bottom line benefits from these grants because the Federal government pays overhead costs to Rutgers. But it is not comparable to having the state chip in more money for the cost of instruction, which is what the state is supposed to do. State aid looks really bad as compared to the past. That's why tuition has to go up.
But it all goes to Fund the operations of the university, particularly research grants the pay for professors, no?
 
Research grants go for the purposes of the grant. If Professor X gets a grant to study sandstorms in the Sahara, then the grant is usable only for that project. As I said, Rutgers does benefit because the grant will reimburse Rutgers for overhead and that may replace funds Rutgers might otherwise spend, but that's a very indirect benefit.
 
Research grants go for the purposes of the grant. If Professor X gets a grant to study sandstorms in the Sahara, then the grant is usable only for that project. As I said, Rutgers does benefit because the grant will reimburse Rutgers for overhead and that may replace funds Rutgers might otherwise spend, but that's a very indirect benefit.
In your example, the cost of Professor X would be part of the research grant. And the budget would include his cost at an hourly rate that is much higher than what he is actually paid. For example, if Prof X is expected to spend 500 hours on the project, his time might be budgeted at 500 hours x $250 per hour, even though Prof X gets paid at a much lower rate.

Then Rutgers' overhead charges are on top of that.
 
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In your example, the cost of Professor X would be part of the research grant. And the budget would include his cost at an hourly rate that is much higher than what he is actually paid. For example, if Prof X is expected to spend 500 hours on the project, his time might be budgeted at 500 hours x $250 per hour, even though Prof X gets paid at a much lower rate.

Then Rutgers' overhead charges are on top of that.

Yes, but doesn't the grantee pay only for the hours that the professor spends on the project?
 
Yes, but doesn't the grantee pay only for the hours that the professor spends on the project?
Sure. If the project is expected to take a professor 500 hours, then the project budget only includes the 500 hours, not the 2000 full-time hours available in a year.

But since the rate is typically much higher than what the professor is actually paid, research grants can cover a good portion of a professor's salary (or in some cases >100%). And then when you add in the overhead charges in the budget, research grants can become a very lucrative source of income for a university.
 
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