HARRISBURG – In his annual budget address Tuesday Gov. Edward Rendell proposed an overall state appropriation increase for Penn State that is estimated at less than 1 percent for the 2008-09 fiscal year.
Rendell’s proposal would provide a .78 percent increase over last year’s figures.
The educational portion of Penn State’s budget is proposed to receive a 1.5 percent increase next year. Agricultural research, Cooperative Extension and Penn College all receive cuts in the governor’s proposal.
“This marks the start of the budget process in Harrisburg, and I and others in our administration will work diligently with members of the House and Senate in the coming months to encourage them to appropriate additional funds,” Penn State President Graham Spanier said. “Higher education is one of the most important investments that any state can make.”
“Following on the heels of five cuts in appropriation funding for Penn State earlier this decade, this proposed modest increase again raises serious challenges for the University,” Spanier said. “We shoulder multiple missions for the state and we need support for all of those missions.”
Spanier will travel to Harrisburg on Feb. 26 for budget hearings before the House and Senate appropriations committees.
A breakdown of the Governor’s proposal for Penn State includes:
— 1.5 percent increase for Educational and General or $267,451,000
— 0 percent increase for Recruitment of Disadvantaged or $454,000
— 1.96 percent decrease for Agricultural Research or $25,094,000
— 1.96 percent decrease for Agricultural Extension or $29,787,000
— 1.94 percent decrease for Penn College Operations or $12,659,000
— 0 percent change for Penn College Debt Service or $1,389,000
These figures alone result in a total 2008-09 direct state appropriation proposed increase of .78 percent or $336,834,000. Pennsylvania also historically provided some support for Penn State’s Hershey Medical Center and related initiatives through a mix of state and federal funds.