College Budget Update

Although the Pennsylvania legislature finally passed, and the Governor signed, the state budget bill on October 9th - 101 days late - Penn State still does not have a budget. The Governor noted they held back the non-preferred (state-related) appropriation bills that fund the four state-related universities (including Penn State), museums, art associations, hospitals and other state related entities until the table games revenue bill is passed, noting the revenues are needed to balance the state budget.

The state Senate has already approved appropriations of $333.8 million for Penn State, but the House still needs to approve the bill. If the Senate numbers hold, Penn State would receive a 6% cut in base funding from the state in FY 2009/10. Funds from the America Recovery and Reinvestment Act (ARRA) would then be used, as required by the legislation, to supplement state funding for higher education, which would leave Penn State with FY 2008/09 initial authorized levels.

For the college, this will likely result in $25,594,000 and $30,384,000 for agriculture research and extension lines respectively. Although this equates to level funding from the FY 2008/09 levels, it leaves the college with a $1.3 million deficit due to increases in operational costs, even with the current freeze on salaries. It also leaves the college facing a permanent decrease in state base funding of 6% into the future.

Although decreases in funding levels are always hard to enact, the college considers this a good budget under the current economic conditions and credits college advocates for communicating support for these lines throughout this difficult budget process. Advocates of college research and extension programs voiced strong support at both the state and federal levels and made a difference. On behalf of the college - thank you for your support !