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State universities face budget shortfall
Thursday, July 17, 2008

The 14 state-owned universities face a $31.6 million budgetary shortfall for the coming school year, officials said yesterday.

Word of the shortfall surfaced as a committee of the State System of Higher Education's board of governors discussed next year's proposed $1.4 billion operating budget in advance of a full board meeting today.

A proposed tuition figure for the 2008-09 academic year has not been announced, but it and the budget are expected to be adopted at today's meeting.

The State System typically closes a budgetary gap by raising tuition, cutting spending or some combination of the two. Responding to an inquiry from a member of the board's administration and finance committee, State System Associate Vice Chancellor Lois Johnson said approximately $7 million in revenue is created with each percent tuition is raised.

The budget shortfall was triggered largely by rising utility and personnel costs as well as higher than anticipated inflation, State System spokesman Kenn Marshall said after yesterday's session.

The system enrolls approximately 110,000 students on its 14 campuses that include California, Clarion, Edinboro, Indiana and Slippery Rock in Western Pennsylvania.

First published on July 17, 2008 at 12:00 am
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