Bill eases PSU cuts

Posted: 4:00am on Jun 12, 2011; Modified: 8:00pm on Jul 22, 2011

Penn State would take a cut in state funding, but not as large as Gov. Tom Corbett has proposed, under legislation state Sen. Jake Corman has introduced.

Corman’s proposed spending bill has a general appropriation of $225 million for the university. That’s 85 percent of the general education funding the university is r eceiving from the state this year, including federal stimulus money.

Corman, R-Benner Township, said the intention is to move agricultural research and cooperative extension funding from Penn State appropriations to the state Department of Agriculture. While a proposal hasn’t been made, Corman said that under current discussions research and extension would receive 90 percent of their original funding.

“We all knew at the beginning of the year it would be a difficult year,” said Corman, chairman of the Senate Appropriations Committee. “We’re doing our best to support the university as much as we can. This is as far as we’re able to get.”

He said the other state-related universities — Lincoln, Pittsburgh and Temple — would also receive 85 percent of their current funding.

While Corman’s proposal doesn’t bring state support for Penn State back to what it is this year — $264 million just for general education — it is higher than what Corbett and the state House of Representatives proposed. Corbett’s

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budget calls for cutting Penn State funding in half. That includes a 50 percent chop in ag research and extension support too.

The House proposal would give Penn State and the other state-related schools 75 percent of this year’s funding level, and state schools 85 percent.

Penn State spokesman Geoff Rushton called Cor-man’s legislation a “substantial improvement” over either of those.

“It’s a promising development,” Rushton said. “At the same time we realize it’s just a proposal at this point. We understand the process isn’t over yet and there’s still a lot of work to be done in the General Assembly before the final budget is passed.”

“We appreciate the efforts in the House and now in the Senate to bolster support for the university,” he said.

The university has been in the process of reviewing all the budgets of its academic and administrative units looking for savings and ways to improve efficiency. That process began before Corbett unveiled his proposed budget and cuts in higher education funding, and has included eliminating some majors and programs and not renewing some job contracts.

The university receives about 17 percent of its general education budget from the state. University officials have warned that if the 50 percent cut were to pass, it would mean layoffs and program cuts.

The state is supposed to have an adopted budget by July 1, the start of the new fiscal year. Corman said there is a good chance one will be passed the week of June 20.

University trustees are scheduled to meet July 15 when they’re expected to adopt a final budget and set tuition for the upcoming school year.

Anne Danahy can be reached at 231-4648.

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