Admin. fears effects of budget shutdown

Rodin says U. loses $1 million daily With the prospect of a quick end to the federal government shutdown looking bleak, administrators are now saying that the University could be adversely affected by the budget struggle. Republican leaders in Congress offered a new proposal for temporary spending last Wednesday, but President Clinton rejected it before it was passed, calling the proposal too restrictive. Clinton told CBS News last week that he would not sign a spending bill he finds unacceptable, "even if [the shutdown] is 90 days, 120 days, or 180 days." While University administrators emphasized that they do not expect catastrophic effects from the shutdown, they are preparing for some fallout. Vice President for Government, Community and Public Affairs Carol Scheman said earlier this week the shutdown would not specifically impact the University. However, that estimate was based on the assumption that the budget problem would be resolved during this week. And University President Judith Rodin said the University spends an average of $1 million in federal funds daily -- funds that might not be available if the shutdown lasts much longer. "If it's a long and drawn-out affair, it would clearly start to affect us," Rodin said. Rodin said the administration has issued a freeze on large equipment purchases for the duration of the government shutdown. "We want to be sure we can cover those purchases with government funds," she explained. Associate Vice President for Policy Planning David Morse said the current shutdown may not be the end of the budget battle -- and that if it continues into 1996, student aid for next semester could be jeopardized. Morse predicted that this week's shutdown will end within the next five to seven days, and that the government will be able to resume operations until December. But he added that the more troubling question is how Congress and Clinton deal with the budget in December. If there is not a final budget in place for fiscal year 1996 by then, another temporary spending bill will be necessary. Although it would only cover government expenses for a few months, Morse said there is a chance such a bill would temporarily reduce funding for student aid. Executive Director of Sponsored Programs Anthony Merritt said there could be a problem if annual research grants cannot be renewed because government offices are closed. "If a renewal grant does not come in we would potentially not be able to continue spending money on the project," he said. And interim Vice Provost for Research Ralph Amado said prospective recipients of new grants could feel the shutdown the most. "Suppose you were just submitting the grant or you hadn't finished getting your grant set," he said. "Then you're really hurt because it just hasn't gone through." But Merritt said most grants contain a provision allowing recipients to spend their awards for 90 days without actually receiving the funds. When the budget impasse is resolved, the government would pay for grant-related expenses incurred during the shutdown. In the end, the effect on the University will be determined by how quickly a final budget is in place. "I think an optimistic scenario would say that we're not going to know until very close to Christmas what the shape of the budget is going to be," he said. "If there's a final resolution in December the impact on the University is likely to be minimal. If it goes beyond Christmas there could be some real problems." The Associated Press contributed to this article.

Please note All comments are eligible for publication in The Daily Pennsylvanian.