Renton Technical College is facing about $1.1 million in budget cuts next year, but its greater concern is for even deeper cuts to financial aid.

About 500 RTC students would see reduction and loss of state Need Grants, if Gov. Chris Gregoire’s budget proposal is carried through the Legislature.

“When you go to students and hear the stories, that’s when you realize they don’t have any money,” said college president Steve Hanson.

For those who lose financial aid, it often means quitting school or taking on debt.

The $146 million cut statewide represents about two-thirds of the program’s budget, said Debbie Solomon, RTC’s director of financial aid.

Gregoire’s second budget promises not to make the cuts, Hanson said.

However, the proposal is also based on the assumption that the state will receive more revenue, including more money from the federal government.

The Legislature hasn’t released its budget proposals.

In addition to financial aid cuts, the governor proposes the complete elimination of the state Work-Study Program.

This year RTC has employed about 70 students through the program, which allows students to work flexible hours to cover living expenses.

“It’s so difficult right now to find jobs outside campus,” Solomon said.

A complete cut to the Work-Study Program would be surprising, she said. “I don’t know what to expect this year.”

The second proposal doesn’t promise the program’s restoration.

At RTC, the financial aid office buzzes with students.

Financial-aid applications have jumped about 70 percent this year, Solomon said. “We’re seeing a huge increase in applications for loans.”

State colleges have been protected from deeper cuts, because of how important they are to helping build the economy, Hanson said.

Technical colleges retrain workers for new jobs, he said.

The state also has to maintain a certain level of funding to receive federal stimulus money, he said.

Although the cut is only about 6 percent of the school’s roughly $32.8 million budget, Hanson is hoping the Legislature will propose fewer cuts.

“It’s demoralizing,” he said. “You can’t view this in a positive light.”

If cuts amount to less than $500,000, he plans to ask the Board of Trustees to cover them with the school’s healthy 10 percent reserve fund.

Although cuts haven’t been proposed, they’ll likely affect student services, he said.

While two-year colleges are facing more cuts, enrollment is up, increasing demand on services.

“The projection for the next few years is pretty grim,” he said.