Penn targeted for major state cutbacks

Gov. Tom Ridge plans to cut in half direct appropriations to nine private Philadelphia colleges next year, and eliminate the money altogether the following year -- and the University is one of his prime targets. Vice President for Government, Community and Public Affairs Carol Scheman said the University is prepared to handle the cut in funds. "It has been clear to us for a number of years that Commonwealth support is not necessarily stable," Scheman said. "In particular, federal cutbacks of funding have seriously affected the state's budget -- all state spending has come under heavy scrutiny and virtually all programs are likely to be cut to some extent." Three years ago the University faced similar cuts, but managed to fight its way back into the budget. Ridge's proposed budget is currently before the legislature in Harrisburg. The House and Senate will most likely rule on the appropriations before July 1, the beginning of the Commonwealth fiscal year. The cuts would take more than $70 million in direct appropriations from colleges such as Penn and Drexel University. "At a time when state government is not able to increase spending for public education," the Governor's Press Secretary Tim Reeves said in a news release. "The notion of spending $70 million in a direct subsidy to a small handful of the state's private universities is difficult to justify." Although the proposed cuts in private-college funding was initially overlooked because of the heated debate surrounding Ridge's cuts in medical assistance, University administrators are seeking legislators to oppose Ridge's plan. "I can't make a strong argument for general funding," Scheman said. "I can make a strong argument for strategic initiatives. I think it's an investment." University officials say the direct appropriations are justified because Penn is the largest private employer in Philadelphia. Also, Scheman said the University needs the funding to help operate the veterinary school, which is world-class. It is the only veterinary school in Pennsylvania and agriculture is the largest industry in the state. "The vast majority of state funding goes to health professional schools," Scheman said. "Money goes to the dental school for clinical services, the medical school for education and the veterinary school, which is key to the state's largest industry." Under the new plan, the University's appropriation would drop from $35.5 million to $17.7 million. Ridge argues that the budget also freezes spending for public schools and that Penn already has a $1.7 billion endowment. The other city schools affected are the Medical College of Pennsylvania, Hahnemann University, Thomas Jefferson University, the Pennsylvania College of Podiatric Medicine, the Pennsylvania College of Optometry, the University of the Arts in Philadelphia and the Philadelphia College of Osteopathic Medicine. Any private institution receiving state money through the Institutional Assistance Grant program will also have cuts under the plan. "We have sought to understand ourselves better and communicate clearly with the state about the purpose and uses of Commonwealth funding to Penn," Scheman said.

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