Balancing act

Preparation for University's budget requires year-long decision process for administration

The budget process is the process that never sleeps.

From August to mid-July, the University administration works to propose, create, defend and re-create the budget for the year, said P. Richard Althouse, University budget officer.

The process ends when the University Board of Trustees approves the University budget at its July meeting and students receive their Fall Semester bill reflecting the new tuition based on the budget.

During those 11 months, Althouse and other University officials consider state appropriations, University needs and the desire for reasonable tuition to create a budget.

"It's a balancing act," Althouse said.

For the 1998-99 academic year, the University requested a 3.5 percent increase to meet the basic operating needs of the University, according to the budget presentation.

In January, Gov. Tom Ridge released his budget, which included the 3.25 increase for higher education.

Spanier appeared before the state Senate Appropriations Committee Monday and next will appear before the state House Appropriations Committee this Tuesday to request the additional funds.

Each year, following these hearings, the legislature debates and determines the state budget.

When the state budget will be released is contingent on whether it is an election year, if the executive branch and legislative branch are controlled by the same political party and the state of the economy, Althouse said.

This year the budget will probably be completed early, said Rich Di Eugenio, special assistant to the University president for governmental affairs.

The general funds budget, which is the part of the budget affected by the appropriations, does not include auxiliary enterprises.

These enterprises are areas of the University that completely pay for themselves and do not require additional funds to operate, Althouse said.

These cost centers include the intercollegiate athletic department, the Nittany Lion Inn, 200 W. Park Ave., and the Office of Residence Life.

The Penn State Bookstore, operated by Barnes & Noble, and the Penn State Geisinger Health System are not included in the budget because they are run through institutions other than the University, Althouse said.

It is no secret what the University budget contains.

The budget has been open since 1987, Althouse said.

"It's there for anyone who really wants to see it," he said.

Most of the budget can be accessed from the University's World Wide Web site, www.psu.edu.

However, those looking for football coach Joe Paterno's salary will be disappointed.

Faculty and staff salaries are the only part of the University's budget that is not open to the public, Althouse said.