AICUP Message to Friends of Private Higher Education: Governor Wolf's 2017-18 Budget Proposal

AICUP Message to Friends of Independent Higher Education

February 13, 2017

Governor Wolf's 2017-18 Budget Proposal

Governor Tom Wolf on February 7 released his budget proposal for 2017-18. In his third budget address, the Governor discussed the $2 billion structural budget deficit and its impact on the overall fiscal health of the Commonwealth. The Governor’s budget proposes total state spending in the General Fund budget for 2017-18 of $32.3 billion, or an increase of $571.5 million, or 1.8% over revised funding for 2016-17.

In higher education, Governor Wolf proposes level funding with three exceptions. (PHEAA is expected to once again provide an augmentation of $87 million to the PHEAA grant program so that no student grants are cut.) The governor proposes cutting Institutional Assistance Grants (IAGS) by one-half to $12.9 million. This appropriation has been cut from a high of $42 million in 2008-09 to the current funding amount of $25.8 million. The amount of the per capita award, which has dropped by 39% over the past 10 years to $644 in 2016-17, would be slashed even further to about $330 per student.

AICUP is concerned about the 50% reduction in IAGs and alerted member presidents about this plan in a memo sent on February 7. The memo included IAG background information, talking points and a printout for funds received by the state’s private nonprofit colleges and universities.

The other two exceptions to level funding for higher education involve funding increases. The Governor proposes a 2% increase, or $8.9 million, for the state system’s 14 universities, bringing their appropriation to $453.1 million. Finally, Governor Wolf proposes a new higher education line item at $1 million for Sexual Assault Prevention grants to colleges and universities.

In the Department of Agriculture, the Governor proposes elimination of the appropriation of $30.1 million for the University of Pennsylvania’s Veterinary School.

Did you know? AICUP Student Aid Advocacy Day is on April 4, and we will encourage our students to promote student aid with members of the General Assembly and the Administration on that day. AICUP will also once again hold regional meetings on the state budget and advocacy efforts this spring to help students and key administrators understand the importance of this activity.