Posted February 4, 2009

Temple takes $11.4 million hit in state budget plan

In his budget address last Wednesday, Gov. Ed Rendell proposed a 6 percent cut in the commonwealth appropriation to the state-related universities. For Temple University, this would represent a loss of $11.4 million in the university’s commonwealth appropriation for the fiscal year that starts in July. The proposed reduction comes on top of the cuts that were made to the current year’s operating budget.

“As a result, Temple will absorb a $22.8 million cut, this year and next, from its original FY 2009 commonwealth appropriation,” explained Temple President Ann Weaver Hart. “That kind of	Related Economic News home
reduction is substantial and will have a lasting impact on the university.” The drop in state support follows a historic pattern that has become particularly noticeable in recent years. Next year’s proposed appropriation of $178.5 million is lower (in non-inflation adjusted dollars) than the $179 million appropriation the university received in the 2001-2002 fiscal year. “This move continues a trend of declining state support that really started more than 30 years ago. In 1972, for example, two-thirds of the university’s budget came from the state. Last year, that number was less than 25 percent,” said the president. Temple has worked hard to keep tuition increases as low as possible. In fact, the percentage of tuition increases in the last decade has been lower than those at Drexel, Rutgers, the University of Pittsburgh and Penn State. Rendell has been hoping to use federal stimulus money to underwrite Pennsylvania’s contributions to state-related colleges. It is now unclear if Congress will approve the federal money for higher education. Earlier this week, the governor warned that if the federal government’s stimulus package is adopted in the form approved by the Senate, aid to the four state-related colleges could shrink by an additional $100 million. Speaking during a press conference, the governor said the next round of cuts, “would bring us into the category of pretty severe pain.” The next step for the university is meeting with the House Appropriations Committee in early March to make the case for additional support. “I will vigorously advocate on behalf of Temple with the governor and General Assembly as the budget process unfolds,” said Hart. “We have a very positive story to tell regarding our steps to enact tighter spending controls and strategically manage our resources.” In January, the president announced that salaries for all non-collective bargaining employees will remain at current levels for the coming fiscal year. In addition, she announced a comprehensive review to cut 5 percent, or $40 million, from the university’s operating budget in the coming fiscal year. “Temple is a responsible partner with the commonwealth, providing access to excellence and serving the educational and research needs of Pennsylvania,” said the president. Updated Thursday, February 12, 2009

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