SRU prepares for $54 million cut from PASSHE
By Mike Madden
Issue date: 11/6/09 Section: News
It's a tale of two different presidents.
One claims the worst of the recession in America is behind us.
The other can currently say the effects of the recession are taking a toll now more than ever.
The former, President Barack Obama, is looking to the future for economic recovery.
The latter, SRU President Robert Smith, is dealing with the reality that $54 million will be cut from the overall pool of Pennsylvania State System of Higher Education money and each school, including SRU, will have to deal with cuts in order to comply with the reduced state budget.
"The budget passed by the legislature was less than what we expected and considerably less than what is necessary to fund our operations without reductions," Smith said.
Smith said that he had anticipated this, and with the help of performance funding, further cuts would not need to be made.
"Because our performance was so exceptional, we received more money through that program than we expected," Smith said, "and the difference offset the reduction in the legislature's budget."
The 2010-2011 operating costs for the PASSHE's 14 universities are $1.5 billion, up 4.4 percent from last year.
The 4.4 percent rise can be attributed to several factors, including health care costs, which are projected to increase by $12.9 million.
State Employees' Retirement System costs, which are expected to increase by about $6.8 million, and utility costs, which will increase about $3.7 million.
Obama's federal stimulus package will be providing $38.2 million in order to offset the lack of state funding.
"The federal funding will help us significantly, but we are sure not to become dependent on it," said Kenn Marshall, PASSHE media relations manager.
The warning to not rely on the federal funding stems from the stipulation that the $38.2 million will be available this year and, more than likely, next year.
But after that, nothing is guaranteed.
One claims the worst of the recession in America is behind us.
The other can currently say the effects of the recession are taking a toll now more than ever.
The former, President Barack Obama, is looking to the future for economic recovery.
The latter, SRU President Robert Smith, is dealing with the reality that $54 million will be cut from the overall pool of Pennsylvania State System of Higher Education money and each school, including SRU, will have to deal with cuts in order to comply with the reduced state budget.
"The budget passed by the legislature was less than what we expected and considerably less than what is necessary to fund our operations without reductions," Smith said.
Smith said that he had anticipated this, and with the help of performance funding, further cuts would not need to be made.
"Because our performance was so exceptional, we received more money through that program than we expected," Smith said, "and the difference offset the reduction in the legislature's budget."
The 2010-2011 operating costs for the PASSHE's 14 universities are $1.5 billion, up 4.4 percent from last year.
The 4.4 percent rise can be attributed to several factors, including health care costs, which are projected to increase by $12.9 million.
State Employees' Retirement System costs, which are expected to increase by about $6.8 million, and utility costs, which will increase about $3.7 million.
Obama's federal stimulus package will be providing $38.2 million in order to offset the lack of state funding.
"The federal funding will help us significantly, but we are sure not to become dependent on it," said Kenn Marshall, PASSHE media relations manager.
The warning to not rely on the federal funding stems from the stipulation that the $38.2 million will be available this year and, more than likely, next year.
But after that, nothing is guaranteed.
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