Admins. say state budget standoff jeopardizes U. funding

The state lost most of its authority to spend money this weekend when the midnight Sunday deadline for passage of a new state budget came and went without any consensus on controversial tax and spending issues. Should state lawmakers fail to pass a budget or some interim spending measure before they recess for the long July 4 weekend today, many state workers will go without paychecks this Friday and any budget agreement will be delayed until next week. Although the impasse does not immediately affect the University, which is paid quarterly by the state, it does little to relieve administrators' fears that there could be massive cuts in the school's state appropriation when a budget is finally passed. Administrators say they are optimistic, however. The state House of Representatives passed a spending proposal early last month which reinstated $13 million in funding from the $18.6 million in cuts proposed by Governor Casey last February. But, while still meeting in committee to discuss budget issues, the Senate has refused to consider the House spending bill on the floor until the representatives also come up with an appropriations bill to pay for their plan. Since that will almost certainly mean large tax increases, legislators are in little rush to debate such a proposal. Pressure to keep tax hikes lower could cause the legislature to reconsider cutting the University's appropriation dramatically, a possibility that continues to worry University budget officials. "It's the largest [tax increase] the state has ever faced." said Director of City and Commonwealth Relations Paul Cribbins on Monday. "If that falls apart, we could be out there." Cribbins and Assistant Vice President of Commonwealth Relations James Shada have continued to take turns lobbying in Harrisburg recently, although the budget process has mostly become a slow waiting game while lawmakers meet in closed-door sessions. A break in the negotiations could come at any time, and Cribbins said they are constantly talking with legislators to get a sense of whether any progress is being made. "A lot of it in the last week is sitting around and waiting," Cribbins said Monday. "You never know when something is going to happen and you need to be up there." Despite the delay, Cribbins said he is still hopeful the University will receive state funding equivalent to last year's levels -- which would mean an additional drop of $5 million in cuts from the House's proposed budget. But he is still not taking the current proposal for granted. "Anytime you're in negotiations it's possible to have things taken away," Cribbins said. "We certainly don't consider that money is there."

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