ALBANY, N.Y. -- The State University of New York system says the outlook is bright.

Chancellor John King told legislators at a joint budget hearing on higher education Tuesday SUNY has seen system-wide enrollment increases in back-to-back years for the first time in 15 years with record setting investment from the state. 

"We're very excited about where SUNY is right now," King said.

He said a $114 million increase in the governor's proposed budget for operating costs will help continue growth, affordability for students and support a new collective bargaining agreement for faculty and staff. The governor is also proposing $550 million in capital investment for critical maintenance and another $200 million for labs.

"One of the conversations today with the Legislature is about how do we grow that commitment to capital. We have a lot of buildings that were built in the 60s and 70s that need renovation, about a $9 billion critical maintenance backlog, so additional capital support would be really helpful to us," King said.

The chancellor said those investments are vital as public universities face uncertainty about federal funding, particularly in regards to research in fields like health and science.

"We're working hard to remind certainly the members of our congressional delegation how much federal research matters for the SUNY system. It's upwards of $700 million each year that we get in federal research funding," he said.

Private schools and universities said they are also concerned about proposed federal policies including new cost-sharing formulas, endowment taxes, elimination of tax benefits, questions about loan availability and the threat the government could withhold funding if they continue with Diversity, Equity and Inclusion programs. However, Commission on Independent Colleges and Universities President Lola Brabham said the private schools are not getting the same support as public.

She asked the Legislature to reinstate about $5 million for programs not included in the governor's budget this year and increase operating funding by another $20 million.

"We're consistently and needlessly left out of key state initiatives and funding opportunities and what that really does is hinder our ability to produce the capable graduates that our state needs," Brabham said.

One of Hochul's budget proposals is a free tuition program for community colleges for students between the ages of 25 and 55 pursuing degrees in high demand fields. Chancellor King strongly supports the program which he believes will help economic development and promote workforce development in these sectors.

Some lawmakers asked about the viability without more investment into community colleges which they said have been traditionally underfunded. King said additional operating support would help the schools deliver on the programs with the board of trustees proposing an additional $30 million.

Meanwhile, Brabham said the Legislature should include students pursuing associate degrees at private institutions in the program noting they represent roughly a third of the degrees offered in those fields. She said it would cost the state roughly an additional $7 million.