University officials prepare
for budget talks with legislators
Editor's note: Intercom went to press before Feb. 8, when Gov. Tom Ridge was expected to announce his planned budget. Last year, Ridge proposed his most generous appropriation for Penn State since taking office, but the amount was still short of the University's identified needs.
By Lisa M. Rosellini
Public Information
University officials are gearing up for Penn State's annual budget hearings before the state Legislature, the first of which is slated for Feb. 14 in the Senate. A second hearing to be held by the House of Representatives is set for Feb. 29, and President Graham B. Spanier said he will be stressing Penn State's continued service to Pennsylvania and the important role the University plays in advancing the quality of life for residents.
Now in its eighth consecutive year of internal budget reallocations -- which so far total nearly $79 million -- the University is seeking a $343.5 million appropriation from the state for fiscal year 2000-2001. This request, an increase of $24.9 million over last year's appropriation, includes special support to promote workforce development, cultural development, and agricultural research and cooperative extension.
"We want to continue to build on Penn State's capacity in these three
areas, which are of critical importance to the quality of life in the state and to Pennsylvania's future," Spanier said. "This University has substantial expertise and longstanding involvement in these areas and can definitely aid the Commonwealth in improving life for its citizens and in diversifying its economy."
In Penn State's 2000-2001 request, officials are seeking $8 million to support workforce development initiatives; $2 million for cultural development -- a new initiative to promote the arts and humanities; and $2.5 million for agricultural research and cooperative extension. University officials are also asking that certain funds appropriated last year be folded into Penn State's base appropriation for this year, including $1.8 million for capital improvements at Penn State Harrisburg and $4.5 million in technology grants for the School of Information Sciences and Technology.
The new interdisciplinary School of Information Sciences and Technology, which welcomed its first students last fall, was created to address urgent needs for information technology skills in businesses and organizations.
As part of Penn State's overall budget request, an increase of 4 percent is being sought for basic operating costs, such as rising expenses in employee benefits, unfunded mandates -- like compliance with the Americans with Disabilities Act, and the need to ensure that Penn State remains competitive with other national research universities in compensation packages offered to its employees. The budget plan includes nearly $24 million for faculty and staff salary adjustments and related employee benefits. The 4 percent increase also will help cover a growing backlog of major maintenance projects at the University.
If the University receives the requested appropriation increase from the state, tuition for most Penn State students is projected to rise by 4.95 percent. Last year, Penn State was appropriated a little over $314 million.
"We are still attacking costs internally, and University administrative functions are more efficient today than they were eight years ago, but our current budget will not be sufficient to help us maintain the quality for which Penn State is known," Spanier said. "We still have escalating costs related to library materials and information technology, among others. The funds we are requesting from the state will help not only our students, but the state as a whole. This is a prudent budget plan."
Currently, Pennsylvania ranks 47th nationally in per capita support for higher education. On a per student basis, Penn State receives about $3,320 per student; schools within the State System of Higher Education receive about $4,760 per student; the University of Pittsburgh gets about $4,820 per student; and Temple receives about $6,350.
After Penn State's budget presentations before both the Senate and the House, the Legislature will continue to hold budget hearings in Harrisburg for institutions of higher education across the state well into March. Primary Elections in Pennsylvania are scheduled for April 4, which means the Legislature will be focusing on that event
following the hearings. Because of a short recess in late April, the budget probably will not be finalized until mid-May, according to officials in Penn State's Office of Governmental Affairs.