Penn State Intercom......February 14, 2002
Governor's proposed 2002-03
budget cuts University 5 percent
Gov. Mark Schweiker
on Feb. 5 presented his proposed budget for the Commonwealth of 
Pennsylvania,
which includes a 5 percent reduction from the 2001-02 appropriation for
Penn State and other state-related universities.
"We understand the financial challenge the state is having, and Penn State must do its part to assist the state," said President Graham B. Spanier. "But we are disappointed that Penn State, along with Temple University, Lincoln University and the University of Pittsburgh are being asked to bear a disproportionate share of the burden. A cut of nearly
$17 million for Penn State alone, if allowed to stand by the Legislature, would present serious challenges for the University, and inevitably place a much greater burden on students and their families.
"Moreover, the cuts to our agricultural research, cooperative extension and medical programs would be profound, with no tuition income available to offset the cuts," said Spanier. "Given that the governor proposes an overall modest increase in the state budget, our hope is that the Legislature will seek to restore this proposed cut."
Under Schweiker's proposal, Penn State would receive an allocation for 2002-03 of $318 million. This is approximately equal to what the University re-ceived from the state in 1999-2000, setting the University back three years in funding.
"When inflationary costs are factored in, the proposed budget sets Penn State back $35 million from 1995-96," said Gary Schultz, senior vice president for finance and business. "We already receive less appropriation per student than any other public university in Pennsylvania, and less than any other Big Ten university. For years we have managed to run Penn State with less than our peers. Unfortunately, as the state's contribution continues to decline, the University will be forced to increase tuition much higher than we would like."