Governor Paterson recently revealed his 2009-10 budget proposal to deal with “the greatest economic and fiscal challenge of our lifetimes.”

Recognizing that a statewide economic resurgence is highly dependent on a well-educated work force, the governor has taken a bold step. Based on the recommendations of the New York State Commission on Higher Education, the Executive Budget would establish the New York Higher Education Loan Program (NY HELPs). This proposal would provide a minimum of $350 million a year in loans to 45,000 resident students enrolled in degree-granting programs at public and private campuses in New York state.

NY HELPs is a partnership between the state, private lenders and higher education institutions. A private lender would originate the loan, which the State of New York Mortgage Agency (SONYMA) would then purchase with funds raised by issuing bonds. In 2009-10, SONYMA will issue $350 million in tax-free bonds to finance new, fixed-rate loans of up to $10,000 per borrower. The debt service on the bonds and administration costs would be paid by the borrowers. The program also allows for an unlimited amount of variable rate loans at similarly affordable rates, which would be originated and held by private lenders.

Gov. Paterson is clearly rising to the economic and fiscal challenge by proposing NY HELPs. He is taking a page from one of his predecessors who went on to become president of the United States. Like Paterson, Franklin Delano Roosevelt recognized that education is a basic ingredient to any economic resurgence. On June 22, 1944, FDR signed the Servicemembers' Readjustment Act of 1944, commonly known as the GI Bill of Rights, into law. By the time the original GI Bill ended in July 1956, 7.8 million World War II veterans had participated in an education or training program.

Colleges and universities in New York have worked hard to educate a work force required to build future high-tech markets. We have established curricula designed to reduce our teacher and health service shortages while enhancing the quality of our graduates in multiple technology fields.

However, this recession is threatening the advances we have made. Access to higher education is becoming dicey. Rising student loan borrowing costs and tightened lending by banks means students have fewer choices of lenders or no options at all. With an interest rate expected to be approximately 8 percent, substantially lower than private bank loan rates, NY HELPs is an idea whose time has come.

“During difficult times, it becomes even more crucial to provide a quality, affordable higher education to all New Yorkers who seek it,” said Gov. Paterson.

It’s clear the governor gets it.

My hope is that our legislators get it, too. Our economic future depends on it.

-- Joseph G. Burke