State budget could affect U. funds

Governor Ed Rendell is expected to make a decision this morning regarding the 2003-2004 state budget proposal, and the result could have ramifications affecting University students.

Facing a looming deficit crisis, Rendell's budget proposal calls for deep cuts in funding for hundreds of programs, including state aid to public universities. Many of these universities are preparing tuition increases to counter the slashes in funding.

Rendell has refused to sign into law the $21 million budget, which he proposed on March 4 in accordance with a state deadline, although it was passed in record time by the Pennsylvania House of Representatives and by a mostly Republican General Assembly.

He had originally planned to unveil his budget in two parts and had urged the state legislature to wait for the full plan before granting its approval. The second part, which he will announce on Tuesday in a joint session of the state legislature, is expected to include plans for higher state taxes and increased funding for education.

"This budget presented the governor with a unique and historic deficit of $2.4 billion," said Tom Hickey, spokesman for the governor. "To balance it, he had to make some tough choices, and hard cuts were made straight across the board."

Some of these cuts come in the area of higher education, with universities facing a 5 percent cut in the proposed budget. However, the governor is trying to balance these cuts with new resources for education.

"As far as tuition goes, the governor is willing to dedicate new resources to help universities avoid tuition hikes," Hickey said. "He has offered to have management and productivity experts come in free of charge and find new cost-saving measures within the administrations of Pennsylvania colleges and universities."

These cuts will have little effect on the undergraduate student body of a private institution like Penn.

"There will be almost no impact on undergrads," said Bonnie Gibson, acting executive director of the University's Office of Budget and Management Analysis. "The majority of revenue from state funding goes toward the [Veterinary] School, the [Medical] School and the Dental School."

The University did receive a 5 percent decrease in funding authorized for the current fiscal year, as well as a substantial cut in the Higher Education Equipment Grant.

"The good news is the [Pennsylvania Higher Education Assistance Agency] student grants ... for Pennsylvania residents maintained the same level, which is important for local students," Gibson said.

"The pain the state's budget situation creates spreads straight across the state," Hickey said. "We need to take sharp steps to grow our economy and invest in our future to avoid having to make tough decisions like these in coming years."

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