|
2010-2011 State Budget
General Budget Information
The State House and Senate passed a budget bill on June 30. The total state FY 2009-10 General Fund budget of $27.835 billion (including stimulus funds) saw an increase of $207 million or less than 1.0% to a total of $28.043 billion. Almost all higher education line items were either decreased or flat funded, with an overall decrease of $19 million to $1.95 billion from the current year. These cuts resulted from a $1.2 billion shortfall in state revenues. The Governor described the budget as having “substantial pain.” There was no increase in broad-based taxes (income or sales) taxes, and Governor Rendell’s proposed basic education subsidy increase was cut from $354 million to $250 million. Many programs and state departments—such as libraries, agriculture, and environmental protection—saw significant decreases.
PHEAA & IAG Funding
PHEAA grants were cut from the prior fiscal year amount of $403 million to $388 million. This was 3.8% cut in the appropriation or $15 million. Some policymakers pointed to the Pell grant increases as lessening the pain on students receiving these cuts. Details on the level of individual student grants will be forthcoming but reports are that the maximum grant may be cut by as much as $600.
Institutional Assistance Grants (IAGS) were essentially level funded in the final budget with a cut of less than .5% or only $140,000. This funding is a testimony to the hard work and persistent advocacy of AICUP institution Presidents. The AICUP Board made the IAGs the number one priority for this budget, and our advocacy paid off.
State Aided Institutions Cut
Although the PennVetSchool, which receives broad support from Pennsylvania’s agriculture community, received level funding, the other private universities receiving direct state aid (including Drexel, PCOM, LECOM, University of the Arts, and JohnsonCollege) had their funding eliminated.
General Higher Education Funding
The state used $90.9 million in federal American Recovery and Reinvestment Act (ARRA) funds once again in 2010-11 to level fund public higher education. (These federal funds are included in the totals for public institutions in the chart below.) At this point, stimulus funds are not expected to be available next year, which could create major problems for all higher education. Act 101, which is a program to support remedial education at public and private colleges, was cut by $590,000 (or nearly 20%). Science in Motion was retained in the budget at $1.6 million with a cut of $300,000. Science, It’s Elementary, the Governor’s science initiative for basic education funding, was cut by 50% from $13.5 million to $6.9 million. Dual enrollment, which allows high school students to enroll in college and provides reimbursement to colleges through the school districts, was cut from $8.0 million to $6.9 million or a cut of 13%.
Capital Funding
A bill to raise the Commonwealth’s debt ceiling for redevelopment assistance capital projects (RACP) is in the Senate Finance Committee (HB 2290). This bill would increase the ceiling by $600-800 million and may provide an opportunity for those schools that have capital projects in passed project itemization bills to receive RACP funding. Passage is expected as part of the budget deal.
A chart listing major higher education funding is included below. Independent higher education funding is in real danger in FY 2011-12 when an expected $4-5 billion deficit may occur in state revenues. If you have questions regarding the budget, please contact Mary Young at www.young.org.
|
APPROPRIATIONS (000)
|
2009-10
|
2010-11
|
2010-11
|
2009-10
|
|
|
HB 1416
|
HB 2279
|
Diff. Avail-Budget
|
%Diff/Avail.
|
|
PHEAA Grants
|
403,632
|
388,313
|
-15,319
|
-3.80%
|
|
PHEAA Matching Grants
|
13,938
|
13,409
|
-529
|
-3.80%
|
|
SciTech
|
3,778
|
3,471
|
-307
|
-8.13%
|
|
IAGS
|
30,250
|
30,110
|
-140
|
-0.46%
|
|
Nursing Shortage Initiative
|
1,000
|
962
|
-38
|
-3.80%
|
|
Higher Ed. Equal Oppt. Grant
|
3,000
|
2,410
|
-590
|
-19.67%
|
|
Higher Education Assistance
|
400
|
1,250
|
850
|
212.50%
|
|
State Aided
|
32,045
|
30,002
|
-2,043
|
-6.38%
|
|
Community Colleges*
|
235,741
|
235,741
|
0
|
0.00%
|
|
Trans. To Community College Cap
|
46,369
|
46,369
|
0
|
0.00%
|
|
Reg. Community College Services
|
650
|
568
|
-82
|
-12.62%
|
|
State System*
|
503,355
|
503,355
|
0
|
0.00%
|
|
Penn State*
|
333,863
|
333,863
|
0
|
0.00%
|
|
Pitt*
|
167,995
|
167,995
|
0
|
0.00%
|
|
Temple*
|
172,737
|
172,737
|
0
|
0.00%
|
|
Lincoln*
|
13,782
|
13,782
|
0
|
0.00%
|
|
Community Education Councils
|
2,000
|
1,400
|
-600
|
-30.00%
|
|
Medical College in NE PA
|
4,000
|
3,850
|
-150
|
-3.75%
|
|
TOTAL
|
1,968,535
|
1,949,587
|
-18,948
|
-0.96%
|
*ARRA FUNDS included in appropriations.
2010-2011 State Budget
General Budget Information
The State House and Senate passed a budget bill on June 30. The total state FY 2009-10 General Fund budget of $27.835 billion (including stimulus funds) saw an increase of $207 million or less than 1.0% to a total of $28.043 billion. Almost all higher education line items were either decreased or flat funded, with an overall decrease of $19 million to $1.95 billion from the current year. These cuts resulted from a $1.2 billion shortfall in state revenues. The Governor described the budget as having “substantial pain.” There was no increase in broad-based taxes (income or sales) taxes, and Governor Rendell’s proposed basic education subsidy increase was cut from $354 million to $250 million. Many programs and state departments—such as libraries, agriculture, and environmental protection—saw significant decreases.
PHEAA & IAG Funding
PHEAA grants were cut from the prior fiscal year amount of $403 million to $388 million. This was 3.8% cut in the appropriation or $15 million. Some policymakers pointed to the Pell grant increases as lessening the pain on students receiving these cuts. Details on the level of individual student grants will be forthcoming but reports are that the maximum grant may be cut by as much as $600.
Institutional Assistance Grants (IAGS) were essentially level funded in the final budget with a cut of less than .5% or only $140,000. This funding is a testimony to the hard work and persistent advocacy of AICUP institution Presidents. The AICUP Board made the IAGs the number one priority for this budget, and our advocacy paid off.
State Aided Institutions Cut
Although the PennVetSchool, which receives broad support from Pennsylvania’s agriculture community, received level funding, the other private universities receiving direct state aid (including Drexel, PCOM, LECOM, University of the Arts, and JohnsonCollege) had their funding eliminated.
General Higher Education Funding
The state used $90.9 million in federal American Recovery and Reinvestment Act (ARRA) funds once again in 2010-11 to level fund public higher education. (These federal funds are included in the totals for public institutions in the chart below.) At this point, stimulus funds are not expected to be available next year, which could create major problems for all higher education. Act 101, which is a program to support remedial education at public and private colleges, was cut by $590,000 (or nearly 20%). Science in Motion was retained in the budget at $1.6 million with a cut of $300,000. Science, It’s Elementary, the Governor’s science initiative for basic education funding, was cut by 50% from $13.5 million to $6.9 million. Dual enrollment, which allows high school students to enroll in college and provides reimbursement to colleges through the school districts, was cut from $8.0 million to $6.9 million or a cut of 13%.
Capital Funding
A bill to raise the Commonwealth’s debt ceiling for redevelopment assistance capital projects (RACP) is in the Senate Finance Committee (HB 2290). This bill would increase the ceiling by $600-800 million and may provide an opportunity for those schools that have capital projects in passed project itemization bills to receive RACP funding. Passage is expected as part of the budget deal.
A chart listing major higher education funding is included below. Independent higher education funding is in real danger in FY 2011-12 when an expected $4-5 billion deficit may occur in state revenues. If you have questions regarding the budget, please contact Mary Young at www.young.org.
|
APPROPRIATIONS (000)
|
2009-10
|
2010-11
|
2010-11
|
2009-10
|
|
|
HB 1416
|
HB 2279
|
Diff. Avail-Budget
|
%Diff/Avail.
|
|
PHEAA Grants
|
403,632
|
388,313
|
-15,319
|
-3.80%
|
|
PHEAA Matching Grants
|
13,938
|
13,409
|
-529
|
-3.80%
|
|
SciTech
|
3,778
|
3,471
|
-307
|
-8.13%
|
|
IAGS
|
30,250
|
30,110
|
-140
|
-0.46%
|
|
Nursing Shortage Initiative
|
1,000
|
962
|
-38
|
-3.80%
|
|
Higher Ed. Equal Oppt. Grant
|
3,000
|
2,410
|
-590
|
-19.67%
|
|
Higher Education Assistance
|
400
|
1,250
|
850
|
212.50%
|
|
State Aided
|
32,045
|
30,002
|
-2,043
|
-6.38%
|
|
Community Colleges*
|
235,741
|
235,741
|
0
|
0.00%
|
|
Trans. To Community College Cap
|
46,369
|
46,369
|
0
|
0.00%
|
|
Reg. Community College Services
|
650
|
568
|
-82
|
-12.62%
|
|
State System*
|
503,355
|
503,355
|
0
|
0.00%
|
|
Penn State*
|
333,863
|
333,863
|
0
|
0.00%
|
|
Pitt*
|
167,995
|
167,995
|
0
|
0.00%
|
|
Temple*
|
172,737
|
172,737
|
0
|
0.00%
|
|
Lincoln*
|
13,782
|
13,782
|
0
|
0.00%
|
|
Community Education Councils
|
2,000
|
1,400
|
-600
|
-30.00%
|
|
Medical College in NE PA
|
4,000
|
3,850
|
-150
|
-3.75%
|
|
TOTAL
|
1,968,535
|
1,949,587
|
-18,948
|
-0.96%
|
*ARRA FUNDS included in appropriations.
|
|
|
|
 |
|
|