On Wednesday, we were given an update by Penn State Administrators on the University’s budget. The announcement comes several months after announcing that they’re facing a substantial deficit in its General Operating Budget.
According to a recent report, Penn State has $12.4 Billion in total assets, but most of it is allocated for specific uses. University Administrators now trying to balance the operating budget by 2025, after revealing a deficit of more than $125 Million in the past fiscal year. Where to cut, and what to cut in reducing spending led to the University Administration considering new budget priorities. One big change was moving away from making the same cuts across the board.
PSU Interim Vice President & Provost Justin Schwartz saying: “Across the board cuts don’t address changing Student needs, Student demands and Student interests.”
Recent news that Penn State is looking to consolidate it’s Law School operations has led to concerns about it possibly being duplicated for other University Colleges and Departments. Penn State President Neeli Bendapudi saying: “There are no plans to do this for any other Colleges or Departments. For the Law Schools we needed to act now because we were in the process of hiring a new Dean.”
An overriding question remains about staffing levels remains. Bendapudi saying: “Will any unit be forced to close down programs, are there any plans for mass layoffs? Again, the answer is no.”
The Penn State Administrators say what they term a strategic hiring freeze will remain in place through the current fiscal year.