THE DEPARTMENT OF EDUCATION
The Governor’s proposed budget includes a new line entitled School Achievement Education Block Grant which combines four previously separate appropriations: basic education subsidy, pupil transportation, non-public and charter school transportation and school employees’ social security. Funding is increased from the current year by a mere $21.8 million for this line, but that increase would likely be needed for increased transportation costs. In addition, $100 million in Accountability Block Grants which were distributed in the current year, have been eliminated. The program provided funding for programs such as pre-kindergarten, full-day kindergarten, and class size reduction. In 2010-11 the program received $255 million.
The budget document touts this as allowing for more flexibility, allowing decision-making to rest with the local school district administrators and school boards. However, since districts lost almost $1 billion overall in FY 2011-12 with reductions in the basic education subsidy and the elimination or reductions to other targeted programs, the rhetoric of flexibility is a thinly veiled attempt to shift the blame of tough decisions that must be made by the school districts and not the Corbett Administration. In addition, pension costs for school districts will increase 3.71% for 2012-13.
Special Education funding provides support for programs in the Commonwealth’s public schools serving students with disabilities. These programs are administered by all 500 school districts, and charter schools where appropriate. The department estimates that the number of pupils with disabilities enrolled in special education programs will be 269,500 in 2012/13. The budget request flat-funds the special education line, at $1.027 million.
Funding for Approved Private Schools and the Chartered Schools for the Deaf and Blind would remain at current year levels.
Early Childhood Education programs are funded in both PDE and DPW. The budget recommends funding in PDE for the Pre-K Counts program at $78.6 million, a reduction of $4 million. Pre-K Counts provides funding for early childhood learning, focusing on at-risk students. It is anticipated that nearly 11,400 children will participate in this program in 2012/13. The budget document assumes a reduction in costs to administer the program.
Head Start Supplemental Assistance, which expands pre-K services to eligible children, would be reduced $1.9 million.
The Governor recommends an increase in funding for Early Intervention which provides services and support for children with developmental delays. The funding increase of $8.0 million would expand services to 1,500 additional children from ages 3 to 5.
The Public Library Subsidy would receive a reduction of 5% or a $2.7 million reduction. The library subsidy supports more than 600 library facilities and 29 district library centers across the Commonwealth. In addition, Key ’93 monies for library rehabilitation and development projects, totaling $1.9 million, will be available.
The proposed budget eliminates funding for the School Nutrition Incentive Program, the Mobile Science Education Program, Job Training Programs and Regional Community Colleges Services.
HIGHER EDUCATION INSTITUTIONS
Overall, funding for higher education institutions, including 2 year and 4 year, both private and public, would be reduced by $267.0 million, if the Governor’s proposed budget is enacted.
Community Colleges
The Governor’s proposed budget reduces funding for community colleges by 3.8% overall, however employees’ social security payments were rolled in and increased slightly, therefore the base allocation for the colleges was reduced 5%. Community Colleges would receive $221.9 million in state funds for 2012/13. In the current year, funds for Community Colleges were reduced 10% from the prior year. In 2010-11, with a combination of federal ARRA funds and state funds, community colleges received $254.3 million. Available funds for capital projects would be level funded at $46.4 million.
The Governor is proposing to reduce the economic stipend set-aside mandate which increased funding to colleges who had a higher number of students enrolled in economic development programs that focus on high priority occupations. He is also proposing to use $5 million from PHEAA earnings for a new Targeted Industry Cluster Certification Program which would provide grants to students enrolling in targeted industry certification programs that are less than 2 years.
The Administration has created an Advisory Commission on Postsecondary Education to assess higher education programs and business needs.
Pennsylvania State System of Higher Education
The Pennsylvania State System of Higher Education (PASSHE) would receive a reduction of 20% in funding. The Governor is recommending an appropriation of $330.2 million. The current year appropriation is $412.7 million. Governor Corbett has requested that PASSHE return more than $20 million to the general fund, although to date the board has not approved this freeze. In 2010-11, PASSHE received $503.4 million in state and federal ARRA money combined.
The budget proposes to redirect to the General Fund PASSHE’s share of the Keystone Recreation, Park and Conservation Fund, used for deferred maintenance projects.
Funding is distributed through the Chancellor’s Office to 14 individual universities in accordance with a formula that considers the enrollment and programs of the school and the cost of operating and maintaining the individual campuses.
The 18 percent reduction in the state appropriation for the current year, translated into an $800 per student loss. Tuition increased by $436. The impact of reduced state funding led to fewer adjunct faculty being hired, class sizes having increased, vacancies having not been filled and many lower-enrolled programs having been put in moratorium or discontinued. Throughout the System, almost 1,000 jobs were lost due to funding cuts.
State-related Universities
The Governor’s proposed budget cuts funding for the state-related universities, specifically the Pennsylvania State University, the University of Pittsburgh, and Temple University by 30%. The appropriation for Lincoln University would not be reduced. The total proposed funding for the four state-related universities is $367.8 million. As appropriated, state funding for these universities in the current year totaled $514.9 million, however the Governor has placed $25.7 million in budgetary reserve. In the 2010-11 fiscal year, with a combination of state and ARRA monies, the institutions received $688.4 million.
The state-related universities use the state appropriation to reduce tuition charged to in-state residents. At a time when parents and students are burdened with the cost of an increasingly expensive college education, these state budget cuts will make the situation even worse.
PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY
The Pennsylvania Higher Education Assistance Agency (PHEAA) provides grants, scholarships, loan forgiveness, and other financial assistance to students and higher education institutions.
Grants to Students
The Grants to Students appropriation comprises the largest portion of the PHEAA state appropriation. For 2012/13, the Governor is recommending total state funding of $361.9 million, and is assuming that the PHEAA Board of Directors will direct $50 million from its business earnings, as in the current year, to be used to supplement the State Grant Program. This funding reflects a 5% decrease from the current year. The State Grant amount as a percentage of applicant’s total educational cost would be reduced from 9.5% in the current year to 8.4% in 2012-13.
It is anticipated that the number of eligible grant recipients will increase for fall 2013. If this amount is enacted, the Board will have to decide whether to reduce the number of grants awarded, or to reduce the average award (estimated at $2,685 for 2011/12) and the maximum grant amounts ($4,309 in 2011/12).
In the current year, state funding in the amount of $380.0 million was enacted. Upon the Governor’s request, the Board agreed to freeze $10 million in Grant Program funding.
Institutional Assistance Grants
The Institutional Assistance Grants line, which provides assistances to higher education institutions that do not receive other state funds, is recommended to be reduced by 30% and would receive a funding amount of $17.1 million. Eighty-eight institutions receive this allocation based upon the total number of eligible grant recipients enrolled. It is expected that in 2012/13 per capita grant amount would be reduced from $669 to $508. Since 2010-11, the last year of the Rendell Administration, funding has been reduced $13.0 million.
Proposed funding for the other appropriations in the PHEAA budget are reduced 5% for:
- Bond Hill Scholarships
- Cheney Keystone Academy
- Matching Payments for Student Aid
- Higher Education for the Disadvantaged
- Higher Education of Blind or Deaf Students (reduced 4.1%)