University officials say proposed state aid cuts could be catastrophic
Beyond his concern about how a proposed cut in state aid for Pennsylvania State University may affect his campus, Penn State Fayette Campus executive officer Dr. Gregory Gray said he is concerned about Fayette County. “Fay-Penn Economic Development Council has been successful in attracting businesses, and those businesses want a trained work force. With less support from the state, fewer residents will be able to come to Fayette Campus,” he said.
If the work force is not available, Gray reasoned, a business is less likely to locate in an area where it has to import employees.
Gov. Ed Rendell, in his 2003-2004 budget proposal, cut by 5 percent the funding to the four “state-related” universities like Penn State and the 14 state-owned universities like California University of Pennsylvania.
If the budget gets the Legislature’s nod, as proposed, this would be the second consecutive year the universities would get less money from the state. A tuition hike is sure to follow.
Penn State’s allocation went down by 3.6 percent for the 2002-2003 fiscal year that began July 1, and university officials raised undergraduate tuition by 13.5 percent. The State System of Higher Education, which oversees the 14 state-owned universities, lost 3 percent of its state aid in the current fiscal year and responded with a 9 percent tuition hike.
To put the proposed 5 percent reduction into context, Penn State had asked for a 7.6 percent increase in its state aid and projected a 6.5 percent tuition raise. The State System asked for a 4.5 percent increase in its appropriation and also proposed boosting tuition by 4.5 percent. Spokesmen for Penn State and the State System said they could not give a projection on what the tuition might be if Rendell’s budget goes through.
“Penn State understands the difficult fiscal situation the state is facing, and we are willing to do our fair share, but a 5 percent cut will present major hardships for the university,” Penn State president Graham Spanier said in a prepared statement in response to the budget proposal. “The proposed cut comes on the heels of $29 million of recent funding cuts for Penn State. The new budget would inevitably force tuition higher.”
Spanier said Penn State officials are hopeful they can work with the governor and Legislature on solutions to “lessen the impact on the university.”
State System hancellor Judy G. Hample said the State System universities make a difference for their students and the state. She pointed out the State System’s contributions to the state will continue to grow if the Legislature and governor focus on education and economic development.
“Adequate funding is essential to ensure the system’s continued success, both in terms of ensuring quality and affordability for students, and as a leader in building a strong economic future for Pennsylvania,” she said.
Hample, on the State System Web site, makes a plea to her colleagues to contact their legislators, “to let them know that the funding to the Pennsylvania State System of Higher Education is not adequate to meet the needs of our students.” The Web site also includes a sample letter for students, alumni and trustees to send to the lawmakers.
Neither Penn State Fayette nor Cal U officials have a say in the tuition, which is set at the higher university systemwide level for them.
Gray said Penn State has experienced four cuts in state funding in the past 18 months, but Fayette Campus has been able to withstand a tight budget so far because of growing enrollment. However, he said the campus can’t hire additional faculty and staff to teach the students the campus could attract.
“It’s very disappointing. I understand the problems the state has, and they have to dig their way out,” Gray said.
If economic development is a means of boosting the state budget, Gray said that wouldn’t happen if the state’s contribution to its universities continues to shrink.
“I honestly believe higher education is the linchpin that will bring business and industry to the community,” he said.