With the signing of the American Recovery and Reinvestment Act on Feb. 17, media reports on the impact the act could have on higher education have been coming fast and furious. Now, a month after the president’s signature, the effect the $787 billion program could have on Temple University is becoming clearer.

“The legislation is complex and is still being interpreted by governor’s staff, legislators and federal agencies,” said Ken Lawrence Jr., senior vice president for government, community and public affairs at Temple.

Lawrence said the impact on Temple will largely be felt in two ways: research dollars for which Temple faculty can compete and funds coming through the State Fiscal Stabilization Fund that will provide stop-gap budget relief.

Competition open for research opportunities


Federal funds are now available to underwrite university research in several specific areas, noted Heidi Grunwald, assistant vice provost and director of research development and financial planning. Grunwald has been helping connect faculty with the appropriate federal lending agencies as part of the highly competitive granting process.

For example, as much as $10.4 billion in recovery research support is being made available by the National Institutes of Health. Although the funds will be available over a two-year period, the federal government wants to spend as much as possible during the 2009 fiscal year.

“We are getting daily updates on what types of research will be funded and how grant applications are being handled,” said Grunwald. Her office has been fielding calls from faculty around campus that want more information on the grants and how to apply.

“There are clearly opportunities for Temple to compete for these funds, and we want to make sure our researchers are aware,” she said.

Temple researchers hoping for an overview of the funds available, the types of research being considered and how to apply for grants can start by downloading Grunwald’s presentation, available at www.temple.edu/ovpr/ovpr/index.html. The presentation is being updated regularly — even on weekends — as new information becomes available.

Commonwealth support back in the picture


One portion of the federal stimulus program is providing funds to help states in their economic recovery efforts. In Pennsylvania, the State Fiscal Stabilization Fund is being used to make up for some of the cuts Gov. Ed Rendell proposed in the annual allocation to state-supported schools.

Temple’s budget has already taken two hits from the state. Earlier in this fiscal year, the state said falling tax revenues meant that the appropriation for the current fiscal year would have to be cut by $11.4 million.

After approval of the federal stimulus package, Rendell announced that the state-related schools would receive a portion of their Commonwealth appropriation for the coming fiscal year, which starts July 1. Temple will receive $10.53 million as a result.

President Ann Weaver Hart has said student needs should be the university’s chief concern.

“The funding will help Temple to keep tuition increases at the lowest possible levels for the next academic year and begin to expand our financial aid program, critical issues for our students and their families especially during this difficult economic climate,” said the president in a March 5 letter to campus.

An announcement on the tuition rates and financial aid program is expected later this spring.

While the news is good for students, the restored appropriation should not be seen as protection from the impacts of the deepening recession. Temple Vice President, Treasurer and CFO Anthony Wagner, said that these are “one-time” dollars that should not become a part of the university’s ongoing budget.

“The State Fiscal Stabilization fund is not a long-term fix,” said Wagner. “We must continue to manage our finances prudently and proceed with plans for reducing expenditures by 5 percent.”

In January, President Hart announced a plan to reduce operating expenses for next year by 5 percent, or $40 million. That plan continues to move forward.

“We must prepare for a sustained economic recession,” Hart said in her letter to the community. “I am confident that our continued efforts to control costs and prudently manage our resources will enable Temple to sustain its commitments through the duration of the downturn and emerge stronger in a sustained economic recovery.”

Pell grants boosted for students in need


One final note: Federal support for Pell grants increased by $17 billion as a result of the federal stimulus program. Pell grants provide need-based grants to low-income undergraduate and certain postbaccalaureate students. Students have to prove their financial need by completing the Free Application for Federal Student Aid (FAFSA) form, available online at http://www.fafsa.ed.gov.