In budget hearing, Pennsylvania’s state-related universities tout avoidance of staff layoffs during pandemic
(The Center Square) – Representatives of Pennsylvania’s four state-related universities met with the state House Appropriations Committee this week for a budget hearing that was first and foremost focused on the impact of the coronavirus pandemic.
The hearing centered on Penn State University, Lincoln University, Temple University and the University of Pittsburgh for four-year higher education funding that is beyond the Pennsylvania State System of Higher Education.
Despite more financial challenges this year, administrators at the four schools have said they have avoided staff and faculty furloughs and layoffs through reducing expenses, dipping into reserves, fundraising, the CARES Act and help from the state.
With more students opting for online education during the pandemic, campus housing and food services have been hit hard, creating one of the biggest concerns for their bottom line.
University of Pittsburgh reported suffering $150 million in aggregate losses largely tied to decreases in food and housing income, according to Chancellor Patrick Gallagher.
Penn State needed to draw $50 million from a recently established line of credit to prevent staff and faculty furloughs and layoffs when help from the CARES Act, dipping into its own reserves, fundraising and reduced spending wasn’t enough.
“What helped us through all this, you provided us with our appropriation for the full year,” President Eric Barron told lawmakers. “It was an anchor that allowed us to do other things.”
Brenda Allen, president of Lincoln University, also credited the CARES Act for help in preventing job losses there despite an approximate 16-percent revenue reduction.
“We’ve just been having to manage that reality the best we can.”
State Rep. Austin Davis, D-Alleghany, asked if students have been impacted financially during the pandemic and if the federal Pell Grant Program was available in their institutions.
“We’re seeing people needing help that never needed it before,” Gallagher said.
Pittsburgh students are looking for other ways to make higher education affordable, such as forgoing the campus life in exchange for online learning and applying for grants like the federal Pell Grant Program.
“But what we’re not seeing yet is changes in demand,” he said. “What we are seeing at Pittsburgh University are near record levels of demand.”
Temple University President Dr. Richard Englert said help from the state and appropriations have helped keep tuition flat for the past two years, which has contributed to its high rating for attracting Pell and graduate students.
State Rep. James Struzzi, R-Indiana, asked how requested budget increases for all four would translate into a higher economic and social impact.
“Especially in areas where you are located,” he said. “Explain how this appropriation helps Pennsylvania.”
Barron pointed to Penn State’s high rate in successfully attracting employers to recruit there. So far, it has been able to keep tuition costs stable, ranking seventh in the nation for not increasing them over the past decade.
“State appropriation becomes incredibly important in supporting those residents and making sure they get a world class degree and recruited by those corporations,” Barron said
Englert said Temple offered research at its institutions, including clinical trials with $30 million alone devoted to COVID-19 research. It currently has 30 clinical trials going and 33 pending trials.
Gallagher said Pittsburgh contributes funding toward high-growth areas such as health sciences and emerging life science markets, while Allen said Lincoln is the largest employer in the area.
Rep. Stephen Kinsey, D-Philadelphia, asked if the four schools had any immediate plans for layoffs; all four said none were planned and that they were optimistic that would continue for the near future.
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