Penn State President Graham Spanier heard more of the same from lawmakers in Harrisburg on Wednesday, just eight days after he traveled to the state capitol and was told not to expect an increase in funding for next year.
While lawmakers at a state Senate Appropriations Committee hearing hailed the university as a driving force for the state's economy, they made it clear that Penn State should not be expecting a funding increase this year, Penn State spokeswoman Lisa Powers said.
"It's interesting, because they recognize the significant role Penn State plays in the economy," she said. "But when it comes down to their own districts, it becomes very personal and they wonder why some programs are being cut."
Spanier requested a 3.9 percent increase in funding for Penn State. But Sen. Jake Corman, R-Centre, Senate Appropriations Committee chairman, said budget problems will make it impossible for the state to increase funding for the university.
"[Funding] is probably going to stay flat," Corman said. "The deficit unfortunately continues to grow."
Powers said Penn State's 24 campuses generate $17 billion a year for the state's economy, and she said Penn State officials are "deeply concerned" about the direction of the university's finances. Dwindling federal stimulus money along with projected deficits in the State Employee's Retirement System (SERS) could set the university back as much as $66 million in the coming years.
While funding remains unchanged for higher education in Gov. Ed Rendell's budget proposal, Spanier said K-12 education is set to receive huge funding increases next year.
Corman said he would like to see some of that money go to higher education, but added that Rendell would not accept that compromise.
"The governor would never allow it," he said. "As much as we have asked and pleaded for equal funding for both, his priority is basic education."
Rendell press secretary Gary Tuma said the governor is committed to providing adequate funding for children in basic education, "no matter what economic circumstances they live in."
He said investment in early childhood education will remain the governor's focus, as that investment has proven to pay the most dividends in the long run.
"Many programs, many institutions that have relied on the state for their funding have had to make do with less," Tuma said. "[The governor] believes there is an opportunity there for higher education to control their costs."
