2003-04 appropriation finally approved; focus shifts to 2004-05

University Park, Pa. -- After waiting nearly six months past the start of the fiscal year, Penn State finally received its 2003-04 state funding when the Legislature passed part two of Pennsylvania's budget on Dec. 22. The long-awaited budget, which was signed by Gov. Ed Rendell on Dec. 23, provides a $307.8 million appropriation to Penn State for the current fiscal year. The amount restores $1.38 million for cooperative extension that initially had been cut from the University's appropriation.

Penn State President Graham B. Spanier was pleased that the funding for cooperative extension was restored to last year's level.

"Cooperative extension does not receive funding from tuition and is entirely dependent on state and federal appropriations," Spanier said. "This is a vital service to the commonwealth and the fact that funding for this program was restored will help alleviate some of the impact on Extension services throughout the state."

The University has extension offices in all 67 counties of the commonwealth.

Although higher than the original recommendation from the governor, the University's appropriation for 2003-04 still reflects an overall funding cut of $14.7 million from last year's initial funding level, and is $8.3 million less than last year's revised appropriation of $316.1 million. Still, Spanier was relatively pleased with the final figure.

"Every dollar of restoration helps," Spanier said. "This funding level is significant and we appreciate the support from the legislature and the governor."

Now that the 2003-04 state budget is passed, attention is being turned to the 2004-05 budget. The governor will present his hour long budget message summarizing the contents of his proposed 2004-05 budget on Feb. 3. The Legislature then will begin its budget hearings. The University's budget hearing before the state Senate is scheduled for 2:30 p.m. Friday, Feb. 27; the House hearing has not yet been scheduled.

In its 2004-05 appropriation request to the commonwealth, the University seeks to have the appropriation restored to the 2001-02 level. These restored funds would be used to help support basic operating cost increases, with special emphases on escalating health-care costs, deferred maintenance and facilities improvements, competitive faculty and staff salary adjustments, and high-priority academic program initiatives.

"While we are mindful of the financial challenges facing the commonwealth, we believe that this is a modest request in light of the decreases in the state appropriation that Penn State has received over the last two years," Spanier said. "If the commonwealth is able to restore our appropriation to the 2001-02 level, the University will be able to hold the basic tuition increase for Pennsylvania resident students to 4.0 percent."

In addition, the University once again is requesting special support for the College of Medicine.

"We focus on this single special request because the only academic medical center in Pennsylvania outside of Philadelphia and Pittsburgh is in jeopardy," Spanier said. "Penn State's College of Medicine has substantial economic, social and employment impacts on the commonwealth. Its importance as a training ground for future generations of health-care professionals, its reputation for quality health care and the life-saving advances that are routinely discovered at Hershey point to the urgency of additional support for our College of Medicine."

For details of Penn State's 2004-05 appropriation request, go to http://www.budget.psu.edu/openbudget/AppropRequest.asp and click on the link to the 2004-05 appropriation request.