I hate the governor of Pennsylvania:
Sorry for the lack of cut, but this is too important to me to not give it maximum exposure. And don't get me wrong, I understand that a reassessing of priorities has become necessary. I merely object to the singling out of Penn State and her fellow institutions Temple and Lincoln as the fall guys for this when it could be mitigated by spreading the cost equally throughout the state schools across the commonwealth.
This is crap (emphasis mine):
http://live.psu.edu/story/40471/nw5
July 10, 2009
Penn State faces an unprecedented dilemma created by the impasse in our state government over the Commonwealth's budget and appropriations. Because of this impasse, Penn State's Board of Trustees and administration has had to make some difficult decisions in order to put in place an operating budget and set tuition levels for the 2009-2010 fiscal year, which began on the first day of this month. I am writing to all in the Penn State family to explain the outcome of our deliberations.
Normally, when the legislature has not passed, and the governor has not approved, a budget by July 1, we would have the option of deferring pay increases or holding back certain expenditures until a budget is in place. But knowing of the depth of the current fiscal crisis in the state and beyond, we already made the decision months ago to forgo pay increases at the University this year. Moreover, we have already made significant cuts to University budgets in anticipation of current constraints. Based on the revised budget the governor proposed this spring and his initial filing with the U.S. government for the use of federal stimulus funds, we were able to hold layoffs to a minimum and plan for classes as usual for the fall.
On June 26, however, in an unexpected and draconian development, the governor proposed a cut of $61 million to Penn State's appropriation as part of a plan to present a balanced budget to the General Assembly. He also declared that Penn State would no longer be considered a public university for purposes of eligibility for federal stimulus funding and thus proposed to make permanent a cut of more than $20 million that was imposed on us in the middle of this past year. An additional cut of more than $40 million would be added, resulting in an 18 percent reduction in our appropriation. We have asked the U.S. Department of Education to reject the governor's determination that we be excluded from the American Recovery and Reinvestment Act of 2009 stimulus funding.
Even with the earlier cuts, we had hoped to be as sensitive as possible to our students and their families by implementing the lowest tuition increase in modern history. But the circumstances of our appropriation, the lack of an approved state budget, the need to send out tuition bills in a timely manner, and our commitment to maintain the quality of the educational experiences for our students has forced us to turn to a tuition increase that will be painful for many of our students and their families.
Our Board of Trustees has approved tuition increases ranging from 4.9 percent at campuses other than University Park to 7.9 percent for out-of-state students at University Park to 9.8 percent for in-state students at the University Park campus. However, should the state enact a budget at the previously proposed level by July 17, the date our fall tuition must be finally set, the Board of Trustees has authorized us to reduce this tuition increase to the previously planned range of 3.9 percent for all students at campuses other than University Park, 3.7 percent for University Park students from out of state, and 4.5 percent for University Park in-state students.
If the state budget impasse continues beyond the date when fall tuition rates need to be set but state officials subsequently implement a budget at a level more favorable than the governor's current proposal - and if this occurs before Nov. 9, when spring tuition bills need to be processed - we will implement a mid-year reduction in tuition commensurate with the appropriation and budget situation at that time. We also will seek to minimize the tuition increase for the following academic year accordingly.
Regardless of which tuition increase is enacted, the University will be operating on a constrained budget and will need to brace for the additional financial challenges in each of the next two years, when stimulus funds will disappear, significant increases in state-mandated retirement contributions will take effect, salary increases will need to be addressed, and increases in energy, insurance, deferred maintenance and student aid will need to be budgeted. I want to note that balancing our 2009-10 budget at either level of tuition increase requires the elimination of reserves we hoped to set aside for the year as a hedge against future uncertainties.
These are difficult financial realities we must face and carefully address if we wish to meet the high expectations for which Penn State is known. Despite these challenges, I am grateful to the Penn State community for your goodwill, hard work and understanding. Penn State continues to be among the most highly regarded universities in the nation for good reason, and we will continue to provide exceptional educational experiences and positive workplace environments for all.
Graham Spanier
President
http://www.portal.state.pa.us/portal/server.pt?open=512&objID=2999&PageID=431162&mode=2&contentid=http://pubcontent.state.pa.us/publishedcontent/publish/global/news_releases/governor_s_office/news_releases/governor_rendell_announces_latest_round_of_cuts__reduces_proposed_budget_by_another__500_million.html
FOR IMMEDIATE RELEASE
June 26, 2009
CONTACT:
Chuck Ardo
717-783-1116
GOVERNOR RENDELL ANNOUNCES LATEST ROUND OF CUTS, REDUCES PROPOSED BUDGET BY ANOTHER $500 MILLION
HARRISBURG - Governor Edward G. Rendell today released a list of cuts totaling $500 million to his proposed 2009-10 fiscal year budget. Combined with more than $500 million in spending eliminated during the current fiscal year, plus other reductions that he previously announced to his projected budget, the Governor has now trimmed $2 billion from state spending during the current national economic downturn.
“Like so many of the cutbacks that we have made before, these reductions are painful to me and I understand they will be painful to the people who benefit from the affected programs. But the reductions are necessary,” Governor Rendell said. “I want Pennsylvanians to know that we continue trying to spread the burden of balancing our budget as fairly and evenly as possible.
“This proposal cuts or completely eliminates nearly 80 percent of all General Fund budget lines from their current level in the budget that was signed into law last July. Twenty-six percent of all budget lines are completely eliminated and of the remaining appropriations that we propose to fund, 70 percent will be reduced from their 2008-09 enacted budget levels,” the Governor said. “We cut further, accepted or partially accepted 53 percent of the cuts that were proposed in Senate Bill 850.”
Overall, 229 line items would be impacted by the latest round of spending reductions. Compared to the current fiscal year, the Governor has now cut three out of every four line items, totally eliminating 163 of them and reducing another 328.
While making the cuts, the Governor preserved funding for K-12 education, economic development programs that are crucial to helping the state pull out of the recession, and key social safety net programs. He avoided actions that could lead to higher property taxes at the local level, or the elimination of services to the most vulnerable citizens of the state.
In addition to further across-the-board reductions to General Government Operations lines for state agencies, the Governor also:
• Eliminated all funding for Classrooms for the Future ($22 million);
• Preserved funding for public colleges in the State System of Higher Education, community colleges and the Thaddeus Stevens College of Technology, but reduced by 13 percent, support for state related universities - Penn State, the University of Pittsburgh, Temple University and Lincoln University;
• Eliminated appropriations for museums throughout the state;
• Reduced spending on Pennsylvania Higher Education Assistance Agency grants to students by about $45 million and institutional assistance grants to independent universities by more than $7.5 million;
• Cut customized job training funds by $9 million;
• Reduced the proposed level of funding for mental health services by $8.5 million; and
• Cut $7.5 million from the public library subsidy.
“I remain committed to adequate support for the programs that are an essential investment in our future and that will improve our economy over the long term,” Governor Rendell said.
The Governor also announced that Pennsylvania will submit its federal stimulus State Fiscal Stabilization Fund application today, prior to the June 30 deadline. Of Pennsylvania’s total 2009-10 allocation of $953 million, the application uses approximately 18 percent, as allowed by federal law, to provide general budget relief ($173 million to help meet mandated correction costs). The remainder is intended for education, and the state will dedicate:
• $418 million for the second year of Pennsylvania’s school funding formula in order to keep local property taxes down;
• $77 million to restore proposed cuts to the State System of Higher Education, community colleges, and Thaddeus Stevens College of Technology; and
• $285 million in one-time grants to school districts to help districts close their budget shortfalls and make one-time investments.
The federal application can be amended when the final state budget is enacted.
###
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his newsletter, visit: www.governor.state.pa.us.
EDITOR’S NOTE: The list of additional cuts is available online at www.budget.state.pa.us
(in the “Current and Proposed Commonwealth Budgets” section).
This is crap (emphasis mine):
http://live.psu.edu/story/40471/nw5
July 10, 2009
Penn State faces an unprecedented dilemma created by the impasse in our state government over the Commonwealth's budget and appropriations. Because of this impasse, Penn State's Board of Trustees and administration has had to make some difficult decisions in order to put in place an operating budget and set tuition levels for the 2009-2010 fiscal year, which began on the first day of this month. I am writing to all in the Penn State family to explain the outcome of our deliberations.
Normally, when the legislature has not passed, and the governor has not approved, a budget by July 1, we would have the option of deferring pay increases or holding back certain expenditures until a budget is in place. But knowing of the depth of the current fiscal crisis in the state and beyond, we already made the decision months ago to forgo pay increases at the University this year. Moreover, we have already made significant cuts to University budgets in anticipation of current constraints. Based on the revised budget the governor proposed this spring and his initial filing with the U.S. government for the use of federal stimulus funds, we were able to hold layoffs to a minimum and plan for classes as usual for the fall.
On June 26, however, in an unexpected and draconian development, the governor proposed a cut of $61 million to Penn State's appropriation as part of a plan to present a balanced budget to the General Assembly. He also declared that Penn State would no longer be considered a public university for purposes of eligibility for federal stimulus funding and thus proposed to make permanent a cut of more than $20 million that was imposed on us in the middle of this past year. An additional cut of more than $40 million would be added, resulting in an 18 percent reduction in our appropriation. We have asked the U.S. Department of Education to reject the governor's determination that we be excluded from the American Recovery and Reinvestment Act of 2009 stimulus funding.
Even with the earlier cuts, we had hoped to be as sensitive as possible to our students and their families by implementing the lowest tuition increase in modern history. But the circumstances of our appropriation, the lack of an approved state budget, the need to send out tuition bills in a timely manner, and our commitment to maintain the quality of the educational experiences for our students has forced us to turn to a tuition increase that will be painful for many of our students and their families.
Our Board of Trustees has approved tuition increases ranging from 4.9 percent at campuses other than University Park to 7.9 percent for out-of-state students at University Park to 9.8 percent for in-state students at the University Park campus. However, should the state enact a budget at the previously proposed level by July 17, the date our fall tuition must be finally set, the Board of Trustees has authorized us to reduce this tuition increase to the previously planned range of 3.9 percent for all students at campuses other than University Park, 3.7 percent for University Park students from out of state, and 4.5 percent for University Park in-state students.
If the state budget impasse continues beyond the date when fall tuition rates need to be set but state officials subsequently implement a budget at a level more favorable than the governor's current proposal - and if this occurs before Nov. 9, when spring tuition bills need to be processed - we will implement a mid-year reduction in tuition commensurate with the appropriation and budget situation at that time. We also will seek to minimize the tuition increase for the following academic year accordingly.
Regardless of which tuition increase is enacted, the University will be operating on a constrained budget and will need to brace for the additional financial challenges in each of the next two years, when stimulus funds will disappear, significant increases in state-mandated retirement contributions will take effect, salary increases will need to be addressed, and increases in energy, insurance, deferred maintenance and student aid will need to be budgeted. I want to note that balancing our 2009-10 budget at either level of tuition increase requires the elimination of reserves we hoped to set aside for the year as a hedge against future uncertainties.
These are difficult financial realities we must face and carefully address if we wish to meet the high expectations for which Penn State is known. Despite these challenges, I am grateful to the Penn State community for your goodwill, hard work and understanding. Penn State continues to be among the most highly regarded universities in the nation for good reason, and we will continue to provide exceptional educational experiences and positive workplace environments for all.
Graham Spanier
President
http://www.portal.state.pa.us/portal/server.pt?open=512&objID=2999&PageID=431162&mode=2&contentid=http://pubcontent.state.pa.us/publishedcontent/publish/global/news_releases/governor_s_office/news_releases/governor_rendell_announces_latest_round_of_cuts__reduces_proposed_budget_by_another__500_million.html
FOR IMMEDIATE RELEASE
June 26, 2009
CONTACT:
Chuck Ardo
717-783-1116
GOVERNOR RENDELL ANNOUNCES LATEST ROUND OF CUTS, REDUCES PROPOSED BUDGET BY ANOTHER $500 MILLION
HARRISBURG - Governor Edward G. Rendell today released a list of cuts totaling $500 million to his proposed 2009-10 fiscal year budget. Combined with more than $500 million in spending eliminated during the current fiscal year, plus other reductions that he previously announced to his projected budget, the Governor has now trimmed $2 billion from state spending during the current national economic downturn.
“Like so many of the cutbacks that we have made before, these reductions are painful to me and I understand they will be painful to the people who benefit from the affected programs. But the reductions are necessary,” Governor Rendell said. “I want Pennsylvanians to know that we continue trying to spread the burden of balancing our budget as fairly and evenly as possible.
“This proposal cuts or completely eliminates nearly 80 percent of all General Fund budget lines from their current level in the budget that was signed into law last July. Twenty-six percent of all budget lines are completely eliminated and of the remaining appropriations that we propose to fund, 70 percent will be reduced from their 2008-09 enacted budget levels,” the Governor said. “We cut further, accepted or partially accepted 53 percent of the cuts that were proposed in Senate Bill 850.”
Overall, 229 line items would be impacted by the latest round of spending reductions. Compared to the current fiscal year, the Governor has now cut three out of every four line items, totally eliminating 163 of them and reducing another 328.
While making the cuts, the Governor preserved funding for K-12 education, economic development programs that are crucial to helping the state pull out of the recession, and key social safety net programs. He avoided actions that could lead to higher property taxes at the local level, or the elimination of services to the most vulnerable citizens of the state.
In addition to further across-the-board reductions to General Government Operations lines for state agencies, the Governor also:
• Eliminated all funding for Classrooms for the Future ($22 million);
• Preserved funding for public colleges in the State System of Higher Education, community colleges and the Thaddeus Stevens College of Technology, but reduced by 13 percent, support for state related universities - Penn State, the University of Pittsburgh, Temple University and Lincoln University;
• Eliminated appropriations for museums throughout the state;
• Reduced spending on Pennsylvania Higher Education Assistance Agency grants to students by about $45 million and institutional assistance grants to independent universities by more than $7.5 million;
• Cut customized job training funds by $9 million;
• Reduced the proposed level of funding for mental health services by $8.5 million; and
• Cut $7.5 million from the public library subsidy.
“I remain committed to adequate support for the programs that are an essential investment in our future and that will improve our economy over the long term,” Governor Rendell said.
The Governor also announced that Pennsylvania will submit its federal stimulus State Fiscal Stabilization Fund application today, prior to the June 30 deadline. Of Pennsylvania’s total 2009-10 allocation of $953 million, the application uses approximately 18 percent, as allowed by federal law, to provide general budget relief ($173 million to help meet mandated correction costs). The remainder is intended for education, and the state will dedicate:
• $418 million for the second year of Pennsylvania’s school funding formula in order to keep local property taxes down;
• $77 million to restore proposed cuts to the State System of Higher Education, community colleges, and Thaddeus Stevens College of Technology; and
• $285 million in one-time grants to school districts to help districts close their budget shortfalls and make one-time investments.
The federal application can be amended when the final state budget is enacted.
###
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his newsletter, visit: www.governor.state.pa.us.
EDITOR’S NOTE: The list of additional cuts is available online at www.budget.state.pa.us
(in the “Current and Proposed Commonwealth Budgets” section).