New Ridge budget will not cut U. funds

Governor Tom Ridge announced his new state budget last Friday -- and Penn once again survived cutbacks. Legislative leaders came through for the nine private colleges in Philadelphia who were under attack. Last month, Ridge proposed cutting direct appropriations in half to the private institutions, and eliminate the money altogether the following year. But the University will receive the same amount of money as last year. And Vice President for Government, Community and Public Affairs Carol Scheman said the University will never rely on the state funding. "We certainly didn't expect to continue to receive so much money," Scheman said. "Of course, we are very pleased." She stressed that the decision to not follow through with the cutbacks was not Penn-specific. However, Scheman gave some credit to people employed by the University. "Our lobbyists spend a significant amount of time in Harrisburg," she explained. "Also, agriculture and farm lobbyists always put in a good word for us." Two local state senators spent a significant amount of time working to gain favor for the University's veterinary and medical schools. "I think the state's refusal to cut our appropriations sends a message to everyone about how important we are," Scheman said. Three years ago the University faced similar cutbacks, but managed to fight its way back into the budget. Scheman described the University as "very fortunate, especially during recent years." Overall, there were few changes to the state budget. Ridge managed to keep his spending at the same level. The $16.4 billion general fund package, which the House is expected to consider later today, adds only $100 million in new spending. The figure represents less than a 1 percent increase from current-year appropriations and is by far the tiniest increase in years, according to a press release from Ridge. Ridge received much of what he wanted, including freezing aid to basic education and expanding economic development programs. Budget items approved in separate legislation last month are expected to save the state $210 million by cutting health care and benefits for tens of thousands of people. "Pennsylvania is now managing taxpayers' money the way taxpayers manage their own money," Ridge said in press statement. "We are living within our means." A new budget had to be signed into law by July 1 or the state would lose its authority to spend money. The fiscal 1997 spending plan, which totals more than $32 billion when federal and other funds are included, appeared to be one of many advantages for Philadelphia. According to the press release, Ridge has had a string of legislative victories over the last two months. Besides the restructuring of welfare and medical assistance, the General Assembly approved his request to eliminate the Department of Community Affairs. Last week, the legislature also passed changes to the workers' compensation system designed to reduce business costs.