{"id":14901,"date":"2016-10-06T13:46:42","date_gmt":"2016-10-06T17:46:42","guid":{"rendered":"http:\/\/quantumnew.esu.edu\/insider\/?p=14901"},"modified":"2016-10-06T13:46:42","modified_gmt":"2016-10-06T17:46:42","slug":"state-system-board-of-governors-approves-505-2-million-appropriation-request-61-million-increase-would-cover-rising-costs-support-new-student-initiatives","status":"publish","type":"post","link":"https:\/\/quantum.esu.edu\/insider\/state-system-board-of-governors-approves-505-2-million-appropriation-request-61-million-increase-would-cover-rising-costs-support-new-student-initiatives\/","title":{"rendered":"State System Board of Governors Approves $505.2 Million Appropriation Request $61 Million Increase Would Cover Rising Costs, Support New Student Initiatives"},"content":{"rendered":"<p>Acknowledging the challenge, but also the necessity, the Board of Governors of Pennsylvania\u2019s State System of Higher Education today voted unanimously to seek $505.2 million in state funding next year, an increase of $61 million over this year\u2019s total.<\/p>\n<p>The increased funding would support a variety of needs, including anticipated increases in healthcare, pensions and other personnel costs, as well as new student-oriented initiatives. Despite two consecutive years of funding increases from the state\u2014totaling about $30 million\u2014the State System and its universities are still dealing with serious budget issues, including a projected multi-million dollar deficit going into 2017-18.<\/p>\n<p>\u201cThe State System continues to face unprecedented fiscal challenges,\u201d said Board Chair Cynthia D. Shapira. \u201cWe look forward to working with the Governor and the Legislature to secure a third-straight year of new funding for the System. The support the state provides represents an important investment, not just in our students and universities, but in the Commonwealth.\u201d<\/p>\n<p>\u201cWe believe the $61 million increase being requested is a realistic number, and one worth advocating for,\u201d said Chancellor Frank T. Brogan. \u201cWe need to cover the deficit; provide increases in compensation for our faculty and staff; and, most important, make critical investments in our universities in order to provide new opportunities for students.\u201d<\/p>\n<p>Not all of the State System\u2019s future costs\u2014even for the rest of this fiscal year\u2014are yet known. The System still is negotiating new contracts with most of its labor unions, including the union that represents faculty, the largest and most expensive of the eight bargaining units with which it has collective bargaining agreements.<\/p>\n<p>Even so, the State System is required to submit its annual appropriation request to the Governor\u2019s Budget Office by the end of October. It is the first step in what usually is a nearly year-long budget process. The Governor presents his budget proposal, which includes his recommendation for funding for the State System, to the Legislature in February. The Legislature must approve a spending plan by June 30.<\/p>\n<p>The last two years of funding increases from the state followed seven years in a row of either flat or reduced state funding. Even with the consecutive years of increased support, the System is receiving about the same level of funding from the state this year as it did in 1999-2000, and about $60 million less than it did in 2007-08, just prior to the onset of the recession. Meanwhile, enrollment declines that began in 2011 continued this fall, which also has negatively affected System revenue.<\/p>\n<p>As a result of continuing budgetary challenges, the universities have been required to cut nearly $300 million in expenses from their combined budgets over the last decade.<\/p>\n<p>Meanwhile, personnel-related costs, especially those involving healthcare and employee pensions, have kept rising, and are projected to continue to do so next year, as well. Salaries and benefits combined will account for about $1.3 billion of the System\u2019s projected $1.7 billion operating budget. Healthcare and pension costs alone are anticipated to increase by about $12.5 million combined in 2017-18.<\/p>\n<p>Total personnel costs can\u2019t be determined until the System reaches agreements with all eight of its bargaining units. A tentative agreement was announced earlier this week with the State College and University Professional Association (SCUPA), which represents about 700 professional employees who provide a variety of student services. The Commonwealth also earlier this year agreed on a new contract with the American Federation of State, County, and Municipal Employees (AFSCME), the terms of which will apply to about 4,000 State System employees who are represented by that union. SCUPA employees account for about 4 percent of the State\u2019s System\u2019s personnel costs; AFSCME employees, about 19 percent. Faculty, meanwhile, account for about 56 percent.<\/p>\n<p>The effort to begin seeking support for the System\u2019s 2017-18 appropriation request will begin immediately.<\/p>\n<p>\u201cFrom my perspective, advocacy is a year-round activity that requires constant attention,\u201d Chancellor Brogan said. \u201cWe are fortunate to have the help of so many dedicated students, faculty, staff, university presidents, trustees and board members who stand with us in seeking more state investment for our 14 universities,\u201d<\/p>\n<p><em>Pennsylvania\u2019s State System of Higher Education is the largest provider of higher education in the Commonwealth, with more than 100,000 degree-seeking students and thousands more who are enrolled in certificate and other career-development programs. Collectively, the 14 universities that comprise the State System offer more than 2,300 degree and certificate programs in more than 530 academic areas. Nearly 520,000 State System university alumni live in Pennsylvania. <\/em><\/p>\n<p><em>The State System universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock and West Chester Universities of Pennsylvania. The universities also operate branch campuses in Oil City (Clarion), Freeport and Punxsutawney (IUP), and Clearfield (Lock Haven), and offer classes and programs at several regional centers, including the Dixon<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Acknowledging the challenge, but also the necessity, the Board of Governors of Pennsylvania\u2019s State System of Higher Education today voted unanimously to seek $505.2 million in state funding next year, an increase of $61 million over this year\u2019s total.<\/p>\n<p>The increased funding would support a variety of needs, including anticipated increases in healthcare, pensions and other personnel costs, as well as new student-oriented initiatives. Despite two consecutive years of funding increases from the state\u2014totaling about $30 million\u2014the State System and its universities are still dealing with serious budget issues, including a projected multi-million dollar deficit going into 2017-18.<\/p>\n","protected":false},"author":51,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[42],"tags":[],"class_list":["post-14901","post","type-post","status-publish","format-standard","hentry","category-news-release"],"acf":[],"_links":{"self":[{"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/posts\/14901"}],"collection":[{"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/comments?post=14901"}],"version-history":[{"count":3,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/posts\/14901\/revisions"}],"predecessor-version":[{"id":14904,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/posts\/14901\/revisions\/14904"}],"wp:attachment":[{"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/media?parent=14901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/categories?post=14901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quantum.esu.edu\/insider\/wp-json\/wp\/v2\/tags?post=14901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}