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HARRISBURG -- Gov. Robert Casey yesterday proposed slashing all state funding to the University in a deadening blow that could cost the University over $37 million. Casey's proposal is part of a $118 million reduction to higher education which specifically recommends eliminating aid to all private universities and colleges. "There's no way to sugarcoat it: New York doesn't pay to operate Columbia. New Jersey doesn't pay for Princeton. Massachusetts doesn't pay for Harvard," Casey said to the applause of some lawmakers. "So with this budget, Pennsylvania's getting out of the business of paying for private colleges and institutions." Casey promised in his executive budget that he would not increase taxes, instead focusing on "downsizing" education and human services to balance the budget. "Simply stated, the non-state related schools' funding has been eliminated," said Michael Hershock, the governor's budget director. This year, the University requested nearly $41.2 million, a 9.5 percent increase over last year's allocation of $37.6 million, which required heavy lobbying to secure. Last year, Casey proposed halving the University's funding, a cut of $18 million. But unlike last year, Hershock said institutions should not expect to recover proposed cuts. In fact, he said some institutions should even expect worse cuts. "I can not say this is the worst case scenario, [that] this is the most likely," Hershock said. "There are [outlooks] that show much deeper cuts." Casey allocated no money for each University line item that usually receives money: general instruction, the Veterinary School, the dental clinics, medical programs and the New Bolton Center. Casey also allocated no money to the Morris Arboretum, which is managed by the University, while he recommended the University Museum receive $176,000. Casey's proposal specifically eliminates funding to all non-state related universities and colleges which include Drexel University, Hahnemann Medical College and Thomas Jefferson University. And the budget proposal recommends a three-and-one-half percent reduction in the appropriations for the four state-related universities: Pennsylvania State University, Temple University, University of Pittsburgh and Lincoln University. This reduction is also recommended for schools in the State System of Higher Education, which include Cheyney State College and Millersville College, among others. "Our public universities and institutions must come first," Casey said. "We only have enough money to take care of the public's own." If the legislature approves Casey's budget, the state would save a total of $118 million. Casey's proposal, if passed, would sever a centuries-old relationship between the state and the University dating back to the Act of September 30, 1791. The act gave the University its present name and designated the governor as president ex-officio of the Board of Trustees. The state of Pennsylvania periodically granted the University money until 1903. Since then, the legislature always has included an annual appropriation, which the University has built into its budget. Casey's proposal is the first phase of a complex budget process that is expected to be completed this spring. Legislators will now begin to research the specifics of the budget and to bargain on their constituencies' behalf. The lawmakers will then work in conjunction with the governor to devise a budget that can pass the legislative branch and will not be vetoed by the governor. "All levels of government and all institutions, including higher education, must adopt the same discipline," Casey said. "Economize. Downsize. And eliminate all unnecessary expenditures." Other highlights of Casey's budget include reducing the amount of medical assistance provided by the state and giving law enforcement agencies more firepower "so they won't be outgunned by the drug dealers." The budget proposal also provides for bringing 6,600 new prison cells on line. "I built this budget on choices. Stark choices. Difficult choices," Casey said. "I have made the choices to protect us from a future that piles deficit upon deficit. Choices which put us in charge of our destiny."

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