"Based on previous years, we've expected the state allocation to cover a little over 40 percent of the operating budget. (The county's figure is much lower.) So far this year, it has covered zero percent, for a difference of-let's see, carry the three-millions. We have reserves, and they've come in handy. But they're meant to even out cash flow over the course of a year, to cover emergencies and to help with large expenses."
"Pennsylvania's state government runs on a July-to-June fiscal year, which means that it was supposed to have passed a budget for this fiscal year by July 1. It hasn't passed one yet, and passage doesn't look imminent. This is becoming a problem. It's already a problem for our county, which has announced cuts. And it's increasingly a problem for the college."
The Pennsylvania state budget remained unpassed after the July 1 start of the fiscal year, causing expected state allocations to go unpaid. A community college that normally relies on state funding for just over 40 percent of its operating budget received zero percent so far, producing a multi-million-dollar shortfall. The college has drawn on conservative operational reserves intended for cash-flow smoothing, emergencies, and large expenses, and has calculated how many months those reserves can sustain operations without state support. County governments have announced cuts, and reserves are not substitutes for regular state funding.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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