State budget includes $50 million for state university redesign
The state budget approved Wednesday awards $50 million to redesign Pennsylvania universities, including the merger California University with Edinboro and Clarion.
Daniel Greenstein, chancellor of the state System of Higher Education, said it’s the first installment of $200 million that will be awarded to the system over four years.
The announcement was made at a special meeting of the state system board of governors two weeks before it votes on the Cal U. merger and that of three other schools in Northern Pennsylvania.
Board Chairwoman Cindy Shapira said the governors will proceed “with all due haste” on the effort to merge the schools, some of which face large debts.
The board has received 738 public comments on the mergers, many of which sought a delay in a vote to approve them.
Greenstein said the comments came from a community represented by 100,000 students and staffs at the 14 state-owned universities.
He said the plan will be revised to address some of the concerns before it is presented to the board at meetings scheduled for mid-July.
The mergers were designed to address enrollment declines and the debts facing some of the schools. Clarion will end the 2021-22 fiscal year with a $6 million deficit in its reserves. Meanwhile, Edinboro will be facing a $2.3 million deficit next term and a $6.8 million deficit in its reserves.
“We’re bleeding cash,” Greenstein said.
The state system is required to reduce spending by $250 million. To date, the spending has been cut by $196 million, he said.
State system spokesman David Pidgeon said the system was working through the details on how the $50 million can be spent to meet the rules attached to federal stimulus money.