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12-19-2009 100
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Posted on October 13, 2009 4:59 AM

Budget leaves PSU waiting

While community colleges and state universities across Pennsylvania prepare to receive state funding, Penn State and Pennsylvania's three other state-related schools are no better off than they were 105 days ago.

Although the primary spending bill was approved Friday, many budget details still remain on the table.

Until legislation that allows table games like poker and blackjack in Pennsylvania casinos passes, almost $680 million in state budget funding will not make its way to Pennsylvania's four state-related schools: Penn State, Temple University, University of Pittsburgh and Lincoln University.

"Constitutionally, Pennsylvania has to have a balanced budget," said Gary Tuma, press secretary for Gov. Ed Rendell. "The governor had to withhold some funding until he has enough funding to pay for it."

If table games become legalized, lawmakers anticipate they will bring in about $200 million in revenue over the next fiscal year.

This would balance the state's budget -- the tipping point legislators are waiting for before they will approve funding for Penn State.

The funding for state-related schools is considered discretionary, non-preferred appropriations, which means the money has to be approved separately from funding for community colleges and state schools, Penn State spokeswoman Lisa Powers said.

"As the term 'non-preferred' suggests, those are typically appropriation bills that are approved after the general state government appropriations," Tuma said.

As the bill for state-related school funding currently stands, Penn State will receive $333.8 million in state funding, with a $15.7 million contribution from federal stimulus money, Tuma said. This is compared to $172.7 million for Temple, $167.9 million for Pitt and $13.7 million for Lincoln University.

The $333.8 million is less than last year's state appropriation of $338 million. Penn State spokeswoman Jill Shockey said she could not comment on whether this decrease could result in a tuition increase.

Don Heller, director of Penn State's Center for the Study of Higher Education, said the date the funding bill passes is not the most significant issue.

"What is much more important is the ultimate level that is approved from the state," he said. "I think that the financial position of the university is pretty good, so it's not like the administration will have to walk down to Citizens Bank on College Ave. to take out a loan."

Tuma said approving partial funding to state-related schools is not a good idea.

"I think that would require us to pick some universities over others, and I don't think we want to get into that right now," he said.

The $200 million expected to come in from the table games is currently under consideration in the House of Representatives after passing a vote of 29-20 in the Republican-controlled Senate. If the Democrat-controlled House changes the bill, it will have to be reconsidered by the Senate.

When asked if the process could be a lengthy procedure, Tuma said he can't predict what the legislature will do.

Although Penn State will not directly be receiving funding, students who were approved for grants from the Pennsylvania Higher Education Assistance Agency (PHEAA) should receive their funding soon, Tuma said. PHEAA's funding was approved in Friday's spending bill.

Tuma said funding approved in the bill will begin being transferred when banks open today.



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