U. scraps $18.6 million budget cutback plan

The emergency budget cutbacks adopted by the administration last spring will be scrapped now that state funding to the University has been restored to last year's level of more than $37 million. But Stephen Golding, the University's budget director, warned that an uncertain economy, coupled with across-the-board belt tightening in Harrisburg, still leaves the University at risk of losing some of its state funding in future years. In March, Gov. Robert Casey proposed cutting the University's allocation by $18.6 million, and administrators adopted a budget to compensate for the loss. Golding said now that the University has recouped the money, it will be spent on the following priorities: · Erasing a $6.7 million deficit which the University's Board of Trustees approved in March. The deficit would have been the first of its kind in 15 years. · Returning nearly $3 million to the Provost's Subvention Fund, an account that pays for long-range academic projects such as a proposed social sciences research institute, undergraduate research and graduate fellowships. · Earmarking $1.5 million for deferred maintenance projects, such as the ongoing renovations to College Hall. Officials have also ended a moratorium on all major building and renovation projects, freeing the Law School to proceed with construction of its new library once the design is completed later this year. Many projects, including the campus center and the new University Police headquarters, were not affected because construction is at least a year away. It is unclear what effect the restored funds will have on the decision made last spring to eliminate 300 faculty and staff positions through attrition and some layoffs. Golding said those personnel decisions were up to each school's deans. One measure that cannot be changed is this year's tuition increase. This year was the first time in five years the percentage increase for tuition did not fall, although the dollar amount has risen every year. This year's tuition, like last year's, increased by 6.7 percent. Golding said about $5 million will be left over and University officials will determine if it will be distributed throughout the University to make up for across-the-board cuts that were announced in March. If not, Golding said some of the funds could be used to pay for academic programs and initiatives that are "non-base-building," or one-time expenditures. This would include new equipment for libraries or other special projects. But Golding said he is not sure whether state funding will continue at the current rate. He said since next year is an election year, funding for the University and other non-state-related schools could be jeopardized if legislators have trouble balancing the state's budget. He said since future tax increases will be hard to justify to voters -- especially after this recent round of increases -- the funding may be reduced instead. "We want to keep an eye on the economy and keep an eye on Harrisburg," he said. "Although it's true we're very grateful to the Commonwealth, we're going to take a deep breath and watch what happens over the next 12 months." And since students will still need certain services, faculty will always expect competitive wages, and the cost of running the University is growing as high or higher than inflation, Golding said the University will likely have to become "a little bit leaner and a little bit meaner." Golding emphasized, however, that because the University plays "an integral role" in the state economy, he hopes legislators will realize any cuts in aid to the University will have broad ramifications throughout the state. And he said the University will prepare this year's proposal for state funding under the assumption that there will be no aid reduction. But a debate may already be developing over whether the University should count on that added aid in the future. Linda Koons, executive assistant to Provost Michael Aiken, said some faculty have suggested that since future support from the state is not guaranteed, current state funding should not be built into the budget. But she added some faculty want to reap the benefit of more state money now. She said some felt the faculty should be given the remainder of their raises, which were reduced from six or seven percent to four or five percent because of the University's budget crisis. The budget will be discussed at next Friday's council of deans meeting.

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