University Park, Pa. -- Gov. Edward Rendell's proposal to increase Penn State's overall appropriation by 3.3 percent for the fiscal year starting July 1, 2006, is the start of the annual legislative budget process, according to University officials. The governor's proposal includes 4 percent for the University's educational and general line item, but no increase for Agricultural Research or Cooperative Extension.
"We appreciate the governor's ongoing support for Penn State and understand the pressure on the commonwealth's resources in recent years," said Bill Mahon, assistant vice president for University Relations. "At the same time, we will work with members of the House and Senate during the coming months to encourage additional support for the University."
Specifically the governor proposed a state appropriation of $322.4 million for Penn State next year. In addition, approximately $14 million in funds for Hershey Medical Center is reflected in the Department of Public Welfare budget.
Penn State President Graham B. Spanier will appear before both the House and the Senate Appropriation Committees later this month to further make the case for financial support of Penn State, the largest higher-education institution in the state with more than 80,000 students at 24 campuses.
The current year's appropriation from the commonwealth is $312 million, which does not include $13.7 million in funds for Hershey Medical Center that are anticipated -- but not yet received.
"With this proposed appropriation falling significantly short of the funds requested to support a tuition freeze by Penn State at 20 of its undergraduate campuses, that idea will need to be abandoned," Mahon said. "The tuition freeze proposal was approved by Penn State's Board of Trustees during their September, 2005, meeting, dependent on a 9.5 percent increase in state appropriation."
Last year the commonwealth provided a 10 percent increase to community colleges, and the funding proposal by Penn State at a similar level was aimed at helping Penn State recover from several years of appropriation cuts from the state.
"We will not be able to freeze tuition for undergraduate students in 2006 with a state appropriation that looks like it might be near the same level we received five years ago," Mahon said. "The increase in inflation and other costs over the past five years will have to be supported by more internal belt-tightening and our only other main income stream -- tuition."
The governor has proposed a 4 percent increase for Temple, 3.7 percent for Pitt, 4 percent for Lincoln, 3.9 percent for the State System of Higher Education and a 4 percent increase for community colleges.
Penn State has made more than $100 million in internal cuts to its budget over the past decade to reduce the impact of inadequate state support for public higher education on students and their families. In 1995, approximately 17 percent of Penn State's budget was from state appropriation. Last year the figure was 9.7 percent.
For a chart showing the 2006 appropriation summary, go to http://live.psu.edu/still_life/appropriation_summary_2006/ online.