Community Colleges

     Community Colleges receive a 3% increase in the budget, which represents a 1% increase over the amount the Governor had proposed. Included is a 2% increase for operating and capital expenses and $1.5 million for special projects. Enrollment is expected to rise slightly for Community Colleges in the next few years; rising costs at community colleges historically have been paid for out of reimbursement for enrollment growth. Currently, the reimbursement is $1,210 for credit and $847 for non-credit courses. At this time, since a School Code bill has not yet been passed, it is not known if credit reimbursement will be increased by $50.

     Although Community Colleges are eligible for a portion of the $7.0 million in Higher Education Technology Grants, they have not received funds to date. In response to this, the budget includes a $5.0 million appropriation for technology initiatives specifically for Community Colleges.

Higher Education Technology Grants

      The budget includes $7.0 million for the second year of Project Link to Learn. This initiative will provide resources to four planning projects related to professional development, technology resources, shared vision and action plans, and technology test beds for the implementation of the Pennsylvania Education Network. This is the second year of a three-year $21 million initiative. Funds are available to the State System of Higher Education, the state-related universities: Penn State, Pitt, Temple and Lincoln, and the community colleges for the planning, design and implementation of higher education components of the PEN. PEN will provide statewide infrastructure to link all public K-12 schools, intermediate units, community colleges, public universities and public libraries throughout the Commonwealth into a comprehensive, high-capacity networks to support the exchange of voice, video and data communications.

Higher Education Equipment Grants

     The budget includes $6.0 million for Higher Education Equipment, an increase of $3.5 million over the prior year and the Governor's recommended budget. The funds will be distributed to institutions of higher education for the purchase, lease or acquisition of Pennsylvania-based equipment in support of undergraduate instruction. Distribution of funds is based on full-time equivalent undergraduate students from all eligible institutions applying for grants. Currently, these grants are available for independent colleges and universities. Language to the School Code will be added that would allow the state-owned and state-related institutions to receive these funds.

Higher Education Engineering Equipment Grants

      Included in the budget is $1.0 million for Higher Education Equipment Grants. Funds are provided for grants to engineering degree-granting schools to assist in the acquisition of new engineering equipment or the upgrading of existing engineering equipment that is necessary to provide students with the courses required to obtain a degree in engineering.

State System of Higher Education

     The State System of Higher Education will receive an overall 4% increase over the prior year's budget, which represents a 2% increase over the Governor's request. Included is a 2% increase for instruction and $4.0 million for special projects that the State System wishes to undertake.

     In addition the System will receive $6.1 million in Keystone Recreation, Park and Conservation Fund money for deferred maintenance projects and is eligible for a portion of the Link to Learn funds as well as a portion of the $6.0 million in Higher Education Equipment Grants.

     As part of the 4% increase, $2.7 million is included for SSHE's Prometheus Project. This information technology project will encourage private sector investment through a matching grant program whereby the Commonwealth-to-private-giving match is 2 to 1. Expenditures for information technology include: (1) Distance Education Equipment; (2) Virtual Library Workstations; (3) Campus Networking Enhancements; and (4) Physical Renovations to Accommodate Technology.

State-Related Institutions

      The state-related universities will each receive a 3% increase over the prior year, an additional 1% over the Governor's request. This increase includes a 2% increase for instruction and 1% for special projects. Included in Penn State's increase, $1.0 million is provided as part of the Retaining and Creating Jobs initiative. Funding is provided to make additional agricultural research grants to assist Pennsylvania farmers identify problems and improve operations.

      Additionally, all the state-related universities will be eligible for a portion of the $7.0 million Link to Learn funds as well as a portion of the $6.0 million in Higher Education Equipment funds.

State-Aided Institutions

      The budget restores funding for the state-aided institutions for 1997-98 at their prior year funding levels. Governor Ridge had proposed reducing state support for the State-Aided Colleges and Universities by an overall $6.6 million, as part of a five year phase-out of funding for these institutions.

      Drexel University has a unique Economic Co-op program which the budget supports. Students participating in this program get hands-on training at a community job. In addition, the budget redirects existing resources to the University of PA's School of Veterinary Medicine in order to better recruit and retain Pennsylvania students through a resident grant program.