By Lisa M. Rosellini

The slight increase proposed for Penn State won't allow the University to even keep up with inflation, according to the latest numbers available from the Bureau of Labor Statistics (Dec. 1998-Dec. 1999).

In its budget request, Penn State is seeking $343.5 million -- an increase of $24.9 million over last year's appropriation. In total, Ridge has proposed an appropriation of $321.9 million for Penn State, a jump of just $7.8 million. Penn State is also expecting a $4.5 million information sciences and technology grant from the state Department of Education that was promised last year.

Under Ridge's new $19.7 billion general budget plan, the 14 schools within the State System of Higher Education will receive a 3-percent increase, while Pennsylvania's community colleges are earmarked to receive the highest increase -- 5 percent. Temple, the University of Pittsburgh and Lincoln, along with Penn State, are slated to receive a 2.5-percent increase. Ridge proposed the same percentage increase for Penn State last year in his February budget message.

The governor's election-year budget is packed with funding increases for child care and libraries across the state, public schools and special education programs, and services for the mentally retarded. It also includes a $41 million boost to the Department of Corrections.

In addition, Ridge's budget incorporates the first tax rebate of his administration: about $100 for every homeowner. Another incentive proposed by Ridge is a "personal computer tax holiday," that would allow people to buy personal computers and be exempt from the state sales tax during designated times of the year. With an expected transfer of surplus money at the end of 2000-01, the reserve balance in the state's Rainy Day Fund will exceed $1.1 billion, nearly 17 times the balance in 1994-95.

University officials are happy with Ridge's proposal to increase funding for the Pennsylvania Higher Education Assistance Authority by 10 percent, to further help students obtain financial aid.

Ridge's fiscal blueprint was presented to the state's General Assembly last week, which has turned it over to the appropriations committees in both the House of Representatives and the Senate. Both chambers are holding public hearings to review requests for funding increases from various entities. In fact, Penn State officials were scheduled to appear before the Senate on Feb. 14 to make the case for an increase in the University's appropriation. Penn State will have a chance to discuss its budget with members of the House appropriations committee on Feb. 29 at 11:30 a.m. The hearings allow legislators to review specific programmatic, financial and policy aspects of each institution's programs. Legislative review will continue into May or longer. The state budget is supposed to be in place by July 1.

University officials are hopeful that bipartisan support in the Legislature will boost Penn State's appropriation beyond what the governor has proposed.

To view the governor's proposed fiscal plan, visit the Web at http://www.state.pa.us/PA_Exec/Budget/2000-2001/BIB/index.html.

The following is a statement on the University's needs to be made by Penn State President Graham B. Spanier to legislators on the Senate and House Appropriations Committees during budget hearings this month.

The governor's budget recommendation of a 2.5-percent increase in Penn State's appropriation for 2000-2001 must only be considered a starting point for discussing the needs of our University and the Commonwealth in developing a highly educated and productive work force in this new information age and enhancing the state's competitiveness and quality of life. We are hopeful that the Legislature will unite in bipartisan support for an appropriation that more adequately recognizes the contributions of higher education.

Our new School of Information Sciences and Technology is an excellent example of Penn State's responsiveness to Pennsylvania's needs.

The School of IST opened its doors this academic year to 427 students at 14 locations throughout the state. Fifty full- and part-time faculty members have been hired and collaborative efforts with public and private colleges and universities throughout the state have been initiated. We have worked closely with industry partners to create a school that is truly an asset for Pennsylvania. We have done all this with the encouragement of the Commonwealth and with the assurance of state support. Without this funding in our permanent base, the ability of the school to hire top faculty and deploy programs on an ongoing basis is seriously jeopardized. We are asking that this funding be folded into the University's base appropriation for 2000-2001.

We also wish to pursue continuing opportunities to partner with the Commonwealth in workforce and economic development. The University's historic involvement in agricultural research and cooperative extension is an important force for the ongoing development of Pennsylvania's agricultural industries and also provides substantial support for Pennsylvania's communities and families, both rural and urban. The new funding we requested in these areas is absent from the governor's proposed budget.

Our educational programs at every level are in tremendous demand. This past year, Penn State received more than 75,000 applications for admission, including more than 53,000 undergraduate applications. More than 22,000 students applied for limited spaces in our graduate and professional programs, including nearly 1,500 students applying to Penn State's Dickinson School of Law and more than 6,300 students applying for 110 spots in our medical school. Our new Penn State World Campus, dedicated to distance education for location-bound students, had 1,000 enrollments in its first year.

Your investment in Penn State would receive a triple-A rating by any measure. Penn State Outreach serves one in two households in the state with a wide variety of programs in support of continuing professional education, workforce training and community and economic development. Penn College, a phenomenal success, is producing critical workers for the Commonwealth and its economy. Nearly 100 percent of our graduates have jobs or are continuing their education.

Penn State's research and technology transfer activities help Pennsylvania businesses to be competitive in the global marketplace. Last year, we were involved with 367 Pennsylvania companies in 648 sponsored research projects that helped to improve business and develop new products. Hundreds more companies received technical assistance and other services through PENNTAP and other programs.

The University's cultural offerings in the humanities and in the fine and performing arts play an important supporting role in our quality of life as well as in economic development, serving as magnets that attract individuals and companies to Pennsylvania communities. They play an essential role in the learning we foster for people of all ages. They deserve our growing support.

One of the most pressing challenges of our state and our nation is affordable and high quality health care, support for the most advanced medical innovations and procedures, the viability of teaching hospitals, and the support of the colleges of medicine that provide the foundation for academic health centers. Providing appropriate support is a responsibility that can no longer be ignored.

Penn State is one of the most efficient universities in America and has reallocated more than $79 million and eliminated or merged 53 programs since 1992. We have one of the model long-range planning processes in higher education, assuring both efficiency and quality as we strive to serve the public better.

The states with which Pennsylvania competes are investing heavily in higher education. Further investment in our University by the people of the Commonwealth through their elected officials will return far more value than the dollars involved. I pledge that every part of Penn State will work to promote Pennsylvania's progress and leadership and that the members of our academic community will be good stewards of the funding the University receives. If you support us at the level we need and deserve, I promise we will not disappoint you.