Gov. Signs Penn State Funding Bill

Bruce McPheron
Penn State Dean of Agriculture

Pennsylvania Gov. Ed Rendell on Dec. 17 signed non-preferred appropriation bills that fund the four state-related universities — including Penn State — as well as museums, art associations, hospitals and other state-related entities. These bills were delayed because  the governor's initial requirement that the legislature first pass the table games revenue bill before passing the non-preferred bills.
However, six months into the fiscal year, strong divisions still exist in the House and Senate over the gaming bill, and it became apparent the legislature was not going to be able to pass the bill in 2009. After both the House and Senate agreed to pass the non-preferred bills separate from the gaming bill and sent the non-preferred bills to the governor for his signature, the governor finally agreed to sign the bills, as the state stood to lose federal stimulus dollars, which come with the requirement that the state maintains its higher-education funding at 2007/2008 levels.
Penn State's 2009/2010 appropriation amounts to $333.8 million. With the stimulus funding mandate of at least flat funding for the university at 2007-2008 levels, the numbers equate to a 6-percent cut in funding from the state, which is offset by funds from the American Recovery and Reinvestment Act, leaving Penn State with 2008/09 initial authorized levels.
For the college, this will likely result in $25,594,000 and $30,384,000 for agricultural research and extension lines respectively. Although this equates to level funding from the 2008/09 levels, it leaves the college with a $1.3-million deficit due to increases in personnel costs, even with the current freeze on salaries.
Although decreases in funding levels are always hard to accept, the college considers this a good budget under the current economic conditions and credits college advocates for communicating support for these lines throughout this difficult budget process. Advocates of college research and extension programs voiced strong support at both the state and federal levels and made a difference.