University Times

The waiting game continues as state legislators work to finalize the fiscal year 2013 budget before the July 1 fiscal year start.

Until a state budget is passed, Pitt’s appropriation remains uncertain, which delays finalization of the University’s budget.

Talks are continuing as Republican leaders from the House and Senate have been meeting with Gov. Tom Corbett to try to agree on a spend number for the upcoming year’s budget.

A Corbett spokesperson said talks are continuing almost daily and expressed optimism that the budget will be completed on time.

The $27.65 billion budget bill passed last month in the Senate is about $500 million more than the governor’s initial $27.14 billion budget proposal. Among the issues is how much money should remain in the general fund at the end of the upcoming fiscal year. The Senate plan would leave a little less than half of the approximately $500 million Corbett would like to see remain.

The state’s Independent Fiscal Office released new revenue estimates on June 12 that pared back its May projections. The IFO now estimates the state will finish the current fiscal year with $27.04 billion in general fund revenues (compared with its May estimate of $27.05 billion) and that Pennsylvania will end FY13 with revenues of $28.1 billion (down from May’s estimate of $28.16 billion).

Although monthly general fund collections in February, March and April were higher than anticipated, state Department of Revenue figures for May fell below estimates. In addition, fiscal year-to-date general fund collections through May totaled $24.9 billion, which is $332.9 million, or 1.3 percent, below estimates.

A bleak mid-year collections report moved the governor in January to order a freeze on $221.5 million in state spending, including a $6.8 million or 5 percent of Pitt’s $136.08 general appropriation. (See Jan. 12 University Times.) Paul A. Supowitz, vice chancellor for Governmental Relations, said there is no indication that Pitt’s frozen funds will be restored this fiscal year.

Pitt’s appropriation

In addition to approving a budget bill in May, the Senate amended Pitt’s FY13 appropriations bill (SB 1468) to restore state funding to $133.993 million in general support plus $2.083 million for rural education outreach, the amounts legislators approved last July for fiscal year 2012. (See May 17 University Times.)

Support for “non-preferred” entities not under the complete control of the state, such as Pitt, is approved through legislation separate from the general fund appropriation. The non-preferred appropriations, which are made after legislators pass a general fund budget, require a two-thirds vote of the House and Senate for approval.

In a prepared statement earlier this week, Chancellor Mark A. Nordenberg said the state’s revenue projections have improved since the governor made his initial FY13 budget proposal in February. “There seems to be strong and growing support to use some of those funds to spare Pennsylvania’s public universities from a second successive year of deep and disproportionate cuts, and we are hopeful that position will prevail when the state budget is finally approved. After all, if the recommended reductions stand, Pitt will have lost more than 50 percent of its state support, well in excess of $100 million, in just two years. That cannot be good, either for today’s Pennsylvania families or for the collective future of Pennsylvania.”

Budget challenges are behind the University’s voluntary early retirement plan offer to qualified staff members. (See May 3 University Times.) Of 672 eligible employees, more than 300 have indicated they plan to retire at the end of June. The decision deadline is tomorrow, June 15.

—Kimberly K. Barlow