NJ taxpayers give Rutgers $1.2 billion. Here’s what they get (Opinion)
Nearly nine years ago, I wrote an article focusing on the taxpayer subsidies propping up Rutgers University and suggested that we get our money back
At the time, Rutgers had a $4.4 billion annual budget, with taxpayers covering approximately 24 cents of every dollar.
The university was charging New Jersey families more than $25,000 a year for tuition, room and board while paying millions to coaches and nearly $1 million to its president.
Rutgers was expensive, top-heavy and far too dependent on taxpayers.
So, what has changed?
Unfortunately, Rutgers has gotten much bigger and much more expensive.
The university’s approved fiscal-year 2026 budget has now reached an astonishing $5.94 billion. That is an increase of approximately $1.5 billion, or 35% since I wrote the original column in 2017.
And New Jersey taxpayers are still on the hook for more than $1 billion.
The fiscal-year 2026 budget includes $484.1 million in direct state appropriations and another $587 million in Rutgers employee benefits paid by the state.
Then, we have to count the taxpayer-funded financial aid sent to Rutgers students.
Rutgers’ most recent financial-aid report identified approximately $155 million in grants funded by New Jersey, including Tuition Aid Grants and the Garden State Guarantee.
Add it together and the identifiable contribution from New Jersey taxpayers reaches approximately $1.226 billion.
That means taxpayers are providing roughly 21 cents of every dollar Rutgers spends.
Technically, that is lower than the 24 cents per dollar Rutgers received when I wrote the original article, but Rutgers’ overall budget has grown so dramatically that taxpayers are contributing even more money in absolute dollars.
In 2017, I said we wanted our billion back. Today Rutgers costs us $1.2 billion, and we've had no progress on reining in the outrageous cost.
Families are still paying through the nose
Despite this massive taxpayer subsidy, Rutgers is hardly inexpensive for the New Jersey families who are supposedly benefiting from their “state” university.
For the 2025–26 academic year, Rutgers lists $14,933 in tuition and $3,891 in mandatory fees for a typical in-state undergraduate commuter.
That means the student is billed approximately $18,824 directly for tuition and fees.
Rutgers then calculates a broader annual “cost of attendance” of $33,348 for that commuter.
This is not the bill Rutgers sends the family.
It is an estimate used for financial-aid purposes that includes both direct university charges and the other costs associated with attending college.
Rutgers reaches $33,348 by adding $5,826 for food and household costs while the student lives at home, $1,446 for books and supplies, $3,580 for transportation, $110 in loan fees and $3,562 for miscellaneous personal expenses to the $18,824 in tuition and mandatory fees.
The $5,826 food-and-housing allowance does not mean Rutgers is charging a commuter for a dorm.
Transportation, books and personal costs are also estimates rather than payments to Rutgers, but they represent what Rutgers itself says a New Jersey family may need to cover for a student to attend while continuing to live at home.
The clean distinction is this: Rutgers directly charges a typical in-state commuter approximately $18,824 in tuition and mandatory fees.
When food, books, transportation and personal expenses are included, Rutgers estimates the complete annual cost of attendance at $33,348.
Over four years, that broader cost could approach $133,000 before accounting for future tuition increases.
Families pay property taxes, income taxes, sales taxes and countless state fees.
Those taxes help deliver more than $1.2 billion to Rutgers.
Then the same families are handed another bill approaching $19,000 a year just for tuition and mandatory university fees.
It's unfair, unjust and unacceptable.
Then there is Rutgers athletics
Rutgers’ latest athletics financial disclosure showed approximately $46.1 million in coaching compensation across all sports.
Greg Schiano alone was listed at approximately $6.5 million, while basketball coach Steve Pikiell was listed at approximately $3.75 million.
Let's not even address the fact that Rutgers paid more than a million and a half to bring in UMass to supposedly beat up on the team that has lost its last 16 games
Only to lose by more than two touchdowns.
Rutgers’ fiscal-year 2026 budget projects $53 million in salaries and wages for the entire athletic department and nearly $77.8 million in total compensation after employee benefits are included.
Total athletics spending is budgeted at approximately $206.9 million, with a projected operating shortfall of about $60.8 million before transfers and internal subsidies.
The university’s own budget shows no direct state appropriation assigned to Rutgers Athletic, but accounting labels do not erase the financial reality.
When taxpayers and students support the university’s general operations, employee benefits and financial-aid system, that support gives Rutgers the freedom to spend hundreds of millions elsewhere, including on an athletic department that continues operating at an enormous deficit.
The Big Ten was supposed to transform Rutgers Athletics into a financial success.
Instead, Rutgers continues spending heavily on coaches, administrators, travel, facilities and debt while students and taxpayers are expected to make up the difference.
It is time for accountability
Many Rutgers students are talented, hardworking young people who will become an important part of New Jersey’s future, but supporting students should not require writing a blank check to a bloated university bureaucracy.
New Jersey could take a large portion of the money currently flowing to Rutgers and direct it to students instead of the institution.
Funding could follow individual students to community colleges, trade schools and public or private New Jersey colleges offering the best value.
Assistance could come with a commitment to remain, work and pay taxes in New Jersey after graduation.
That would be an actual investment in the state’s future, not another subsidy for university administrators and multimillion-dollar coaching contracts.
Rutgers should be forced to live within a responsible budget supported primarily by tuition, research grants, donations, medical revenue and genuine athletic income.
Nearly nine years ago, I called on state leaders to reduce Rutgers’ taxpayer contribution and redirect the money toward priorities that actually benefit working and middle-class residents.
Instead, Rutgers grew from a $4.4 billion operation into a nearly $6 billion behemoth.
The university receives more than $1.2 billion in identifiable taxpayer support, directly charges a typical in-state commuter nearly $19,000 in tuition and mandatory fees, estimates that commuters complete annual cost of attendance at more than $33,000 and spends more than $46 million compensating athletic coaches.
Enough.
Rutgers, we still want our billion back.
Actually, make that $1.2 billion.
The post above reflects the thoughts and observations of New Jersey 101.5 talk show host Bill Spadea. Any opinions expressed are Bill's own.
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Gallery Credit: New Jersey 101.5
The post above reflects the thoughts and observations of New Jersey 101.5 talk show host Bill Spadea. Any opinions expressed are Bill's own.
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