Proposed Stae Funding Decrease

Sean O’Connell
Temple University
July 7, 2009
The American Recovery and Reinvestment Act of 2009 (ARR) provides that states are to provide to public institutions of higher education funding greater than that provided in the 2008 and 2009 fiscal years. The aim of section 14002 of this act is to continue the pattern of increasing funding for public education annually even in the face of diminishing state tax revenues. This act, from the Federal government all comes with funding to support this provision.
Currently passed due is the Pennsylvania state budget, which sets forth how money that is tied to the ARR is to be distributed amongst public universities and colleges. In its current form the budget has specifically excluded four states related universities: Temple University, Pennsylvania State University, Pittsburgh University, and Lincoln University. Governor Rendell has provided the rationale, for their exclusion, that they are not under the “absolute control” of the State of Pennsylvania.
Overall, this exclusion would cause Temple University to lose a combined total of $31million, compared to the previous fiscal year. There are wide ramifications of this exclusion; the most notable to students would be an increase in tuition of around 11%.
The University had taken steps earlier in the year, while planning its own budget, to make room for decreased state funds in this time of economic turmoil. The University board of trustees worked to provide more direct funding for financial aid, releasing $7million. Also, the board worked with university administration to limit a tuition increase to 2.9%, the lowest in years. The actions of the board of trustees recognize Temple Universities mission to provided access to education and recognizes that education is an investment in the future of our City, State, and Nation.
If the state budget passes in its current form these steps taken by the university would do little to offset the possible $30million loss in funding.
The Universities position is that Temple’s exclusion from the definition of “public institutions” is uncalled for and unsupported by law or practice. The Universities Council addressed this concern in a memorandum to University President Hart. Since 1965 Temple University has received state funding and has reserved three seats on the Board of Trustees for appointments by the state and one seat for the governor himself. Temple is recognized as an instrument of the state and therefore a public institution. It is made clear in both state and national legislation that Temple University is a public institution of higher education.
Numerous letters from University administration have been sent to the state capital including a letter from President Hart to the United States Secretary of Education in Washington D.C. Temple Student Government (TSG) has begun a drive to collect letters petitioning Governor Rendell to rethink his position. Within the first 12 hours of the TSG movement more than 600 letters had already been received.