A Statement From Penn State President
Graham Spanier On The New State Budget

6-28-96
University Park, Pa. -- In response to the passage of the 1996-97 state budget, which provides no increase for instructional programs and services but a $4.3 million increase for agricultural research and cooperative extension at Penn State, University President Graham B. Spanier issued the following statement:

"I am terribly disappointed that Penn State's base appropriation for educational programs was frozen at last year's level. An appropriation that remains flat, as this one does, represents in inflation-adjusted dollars a reduction in the support available to maintain our high-quality instructional programs. Yet despite this difficult situation for the University, I am encouraged and grateful that the Governor and General Assembly recognized the critical need to increase funding for Penn State's agricultural research and cooperative extension programs. These areas had received no increase for six years. Consequently, they were very high priorities for the University this year. We also are pleased that the budget was passed on time, thereby allowing us the ability to plan for the coming year in an orderly fashion.

"This appropriation is going to make it challenging to present a balanced budget to the Trustees that keeps tuition increases to a minimum while at the same time maintaining the critical programs and services we offer. I am absolutely committed to keeping tuition increases as low as possible, even under this scenario. To keep tuition increases close to earlier targets will require us to offer only modest salary increases, accelerate our efforts at cost reductions and internal reallocations, and scale back some of our initiatives to strengthen academic programs. I am especially disappointed that we will not be able to see much progress this year in improving faculty-student ratios in our classrooms.

"We understand the problems that faced the Governor and General Assembly during this budget process as the Commonwealth confronted its imposing fiscal challenges. Yet, the steady erosion of support for public higher education must be addressed to allow us to continue to provide an affordable, quality education for Pennsylvania's residents. Pennsylvania has fallen to 46th out of the 50 states in per capita funding for public higher education. The economy, future vitality, and quality of life for this state are dependent on an educated work force, and Pennsylvania must find a way to increase its funding of higher education. Penn State has been doing more than its part to be responsible fiscally and we will continue to be good stewards of those taxpayer dollars that are entrusted to us."

A description of the 1996/97 appropriation for Penn State is available from Penn State Department of Public Information.

*****

Contacts:
Alan Janesch
(814) 865-7517 (office)
(814) 867-3621 (home)
axj12@psu.edu

Stephen J. MacCarthy
(814) 863-1028 (office)
sjm15@psu.edu