Governor proposes level funding for Penn State in 2010-11

Pennsylvania Gov. Ed Rendell's 2010-11 budget plan for the Commonwealth, announced today (Feb. 9), proposes $333.9 million to support Penn State. This includes a base appropriation of $318 million and $15.8 million in federal stimulus money. This funding proposal is equivalent to the University's appropriation for 2009-10.

In his final budget address to the state, Rendell indicated that this fiscal blueprint is aimed mostly at meeting the increasing costs faced by the state from nondiscretionary spending requirements. Rendell said his $26.3 billion proposed general funds budget, which is considered "bare bones" by some, still reflects $2 billion less in spending than two years ago.

"We had hoped for an increase that also would cover our rising costs in areas such as health care, utilities and retirement benefits associated with the State Employees' Retirement System (SERS)," said Penn State President Graham Spanier. "At the same time, we are aware of the economic realities faced by the Commonwealth."

The governor's budget proposal is the first step in the appropriation process. Penn State officials will spend the next several months discussing with state legislators the funding needs for the University. President Spanier is scheduled to appear before the House Appropriations Committee on Feb. 23 and the Senate Appropriations Committee on March 3.