PSU news by
Penn State's student blog



Governor Cuts Penn State’s Funding (Again)

size_of_appropriationGovernor’s Reduction

Governor Ed Rendell released the latest of his increasingly drastic budget reductions for the 2009 fiscal year. The governor has now reduced the budget proposal by $2 billion dollars.

Overall, 229 line items would be impacted by the latest round of spending reductions. Compared to the current fiscal year, the Governor has now cut three out of every four line items, totally eliminating 163 of them and reducing another 328.

One of the details in the most recent revision, which was released on Thursday, is that the public-related institutions will not be receiving federal stimulus money, resulting in a loss of $20 million in expected appropriations.

Penn State’s Catastrophe

University spokeswoman Lisa Powers told the Centre Daily Times that the reduction would be “catastrophic” for the university. If the current cuts came into effect for next year, the state aid Penn State receives would be back down to 1996-levels.

Graham Spanier is understandably upset. He has to present to the Board of Trustees on July 10th. Before then, he has to make some pretty big decisions.

He has told us that he does not want to raise tuition any more than normal– roughly 5%. He has also told the faculty that the university had not and hopefully would not need to enact any mass layoffs.

Here’s what he had told the Board back in January.

We do not anticipate resorting to any of the university-wide emergency actions being taken by scores of colleges and universities throughout the nation such as mid-year tuition increases, hiring freezes, mandatory furloughs, pay cuts, travel freezes, liquidation of endowment assets, and loans to meet basic operating needs.

But he knew this kind of situation would finally come, and he probably could have guessed that it would occur during the annual budget impasse. It was fully underway by November, when the state actually asked for $20 million of its 2008 appropriation to be returned to the government.

Watch this story over the next couple of weeks. Something is going to happen. Veblen speculated wondered if Rendell wants some relinquishment of budgetary oversight by the school to the state, but it seems to me something that massive would get overlooked in the push to get the budget passed to prevent furloughs.

Your ad blocker is on.

Please choose an option below.

Sign up for our e-mail newsletter:
Support quality journalism:
Purchase a Subscription!

About the Author


Creator of @OnwardState. Big fan of sweaters.


Get notified about breaking news
Loading notification service...
Other posts by Davis

Penn State and the Process of Life

To paraphrase Mark Twain: The reports of higher education’s death have been an exaggeration. American universities produce more research and relevant knowledge for the world at large than any other institutions I know of. Tuition may be too damn high, but over the long-run, undergraduate degrees are definitely worth the cost. But Penn State could be so much more. It used to be, I think.

Bonded in Blue, White, and Worry

43 Simmons

Penn State Student Dies Of Coronavirus-Related Complications

Garcia is the first known Penn State student to die after contracting the virus.

Penn State Hospitality Students Staying Positive Despite Uncertain Future

“We really have no other choice but to put on a smile on our face and kind of just roll with the punches.”

Send this to a friend