Governor Presents 2012-13 State Budget Proposal
Gov. Tom Corbett presented his $27.1 billion budget proposal for the 2012-13 fiscal year last week before a joint session of the General Assembly. This budget represents a decrease in spending of (0.1%) from this fiscal year. The Governor’s focus is on “keeping taxes in check and spending under control” while replacing jobs lost in the recession. The Governor made it clear that he would not increase taxes: “Reform means understanding this simple truth: when you don’t have enough to spend, you spend less.”
Governor Corbett proposes spending $1.36 billion in higher education. This represents a decrease of $266.3 million (16.4%) in FY 2012-13 from the current fiscal year. (However, $72 million was transferred out of overall higher education when the Penn Vet School and the PSU Ag Research and Extension were transferred out of the General Fund budget to the Race Horse Development Fund.) The State System of Higher Education (SSHE) would receive a 20% cut ($82.5 million) and three state-related universities (PSU, Pitt, Temple) would receive a cut of 30% ($147 million combined). Lincoln University is the only public university spared as it is level funded. Community colleges would receive a 3.8% decrease ($8.8 million).
PHEAA grants received a decrease of $19.1 million from the current level of $380.9 million, or a 5% cut. This state appropriation does not include any resources that the PHEAA agency may inject into the State Grant Program. PHEAA is expected to add $50 million for 2012-13 as it did in this fiscal year. It is also expected that $10 million of this Agency funding will be set aside for Community College late applications. The Act 101 and Matching Payments for Student Aid were also cut by 5%. The Institutional Assistance Grants (IAGs) received the same treatment as the state-related universities and were cut by 30% ($7.3 million) to a level of $17.1 million. Science in Motion is eliminated.
Governor Corbett said little about higher education in his budget address. He did announce the creation of a state panel to look at higher education funding, noting “I think we need to talk about this (higher education funding) honestly and without rancor and dramatics.” The Governor has asked former state senator and current president of the Greater Philadelphia Chamber of Commerce Rob Wonderling to chair the panel. Comprised mostly of people from the business and higher education sectors, this panel will include the following individuals from the private college and university sector:
Bill Durden, president, Dickinson College;
Don Francis, president, Association of Independent Colleges & Universities;
Amy Gutmann, president, University of Pennsylvania;
Mike MacDowell, president, Misericordia University;
Connie Nichols, education professor, Grove City College; and
Sara St. Peter, student, Allegheny College
Did you know? The Governor’s budget proposal is accessible online at:
Governor Presents 2012-13 State Budget Proposal
Gov. Tom Corbett presented his $27.1 billion budget proposal for the 2012-13 fiscal year last week before a joint session of the General Assembly. This budget represents a decrease in spending of (0.1%) from this fiscal year. The Governor’s focus is on “keeping taxes in check and spending under control” while replacing jobs lost in the recession. The Governor made it clear that he would not increase taxes: “Reform means understanding this simple truth: when you don’t have enough to spend, you spend less.”
Governor Corbett proposes spending $1.36 billion in higher education. This represents a decrease of $266.3 million (16.4%) in FY 2012-13 from the current fiscal year. (However, $72 million was transferred out of overall higher education when the Penn Vet School and the PSU Ag Research and Extension were transferred out of the General Fund budget to the Race Horse Development Fund.) The State System of Higher Education (SSHE) would receive a 20% cut ($82.5 million) and three state-related universities (PSU, Pitt, Temple) would receive a cut of 30% ($147 million combined). Lincoln University is the only public university spared as it is level funded. Community colleges would receive a 3.8% decrease ($8.8 million).
PHEAA grants received a decrease of $19.1 million from the current level of $380.9 million, or a 5% cut. This state appropriation does not include any resources that the PHEAA agency may inject into the State Grant Program. PHEAA is expected to add $50 million for 2012-13 as it did in this fiscal year. It is also expected that $10 million of this Agency funding will be set aside for Community College late applications. The Act 101 and Matching Payments for Student Aid were also cut by 5%. The Institutional Assistance Grants (IAGs) received the same treatment as the state-related universities and were cut by 30% ($7.3 million) to a level of $17.1 million. Science in Motion is eliminated.
Governor Corbett said little about higher education in his budget address. He did announce the creation of a state panel to look at higher education funding, noting “I think we need to talk about this (higher education funding) honestly and without rancor and dramatics.” The Governor has asked former state senator and current president of the Greater Philadelphia Chamber of Commerce Rob Wonderling to chair the panel. Comprised mostly of people from the business and higher education sectors, this panel will include the following individuals from the private college and university sector:
Bill Durden, president, Dickinson College;
Don Francis, president, Association of Independent Colleges & Universities;
Amy Gutmann, president, University of Pennsylvania;
Mike MacDowell, president, Misericordia University;
Connie Nichols, education professor, Grove City College; and
Sara St. Peter, student, Allegheny College
Did you know? The Governor’s budget proposal is accessible online at: