Breaking the Bank
HAMBURG, PA — In response to an announcement that state appropriations may be reduced for public universities due to budget shortfalls, today Dennis Baylor called for a moratoriam for Legislative Initiative Grants (WAM’s) until higher education funding is restored in Pennsylvania. Gov. Rendell’s office says that colleges may lose up to $50 million in appropriations collectively, which could mean tuition increases for students.
Since the Pennsylvania’s budget has fallen short three months in a row, Gov. Rendell has called for a state hiring freeze and suspended employee out-of-state travel, and more cuts are inevitable. The state has collected $5.8 billion since July 1, which is $281.4 million less than expected this fiscal year, and public university funding will be the next to experience the shortfall.
The State System of Higher Education will be expected to take the biggest cut — $22.4 million collectively among the 14 state-owned universities. Some examples include a $7.3 million cut from the University of Pittsburg, $14.4 million cut from Penn State University and $7.5 million cut from Temple University.
In order to shield these universities from the revenue shortfall, Mr. Baylor proposed that the General Assembly suspend usage of WAM’s, or “walking around money,” (discretionary funds used by legislators for projects of their own choosing) until the spending issue is resolved. According to Mr. Baylor, this cut in spending could help to save public universities from the 4.25% projected cut in appropriations, and keep students from paying even higher tuition rates in the next fiscal year.
