Pennsylvania legislators are more than four months overdue to pass a state budget, leaving state schools and students without appropriations and grants.

The deadline to approve a budget was on June 30, the end of the 2014-2015 fiscal year. When July 1 rolled around, the Republicans and the Democrats still had not made a deal, causing Pennsylvania to enter a budget impasse.

State Rep. Rob Kauffman, R-89th District, said the impasse has the potential to continue for months, but it may end in weeks due to the Democrats’ increasing frustration with Gov. Tom Wolf’s lack of willingness to compromise.

The state is prohibited from making payments during this period until a budget is approved, but there are numerous types of programs that are still funded, according to pa.gov.

“The Commonwealth will continue to make payments and continue operations in all areas that affect the health, safety and protection of Pennsylvanians or as required under Federal Law, state court decisions or the Pennsylvania Constitution,” the website states.

Among the list of programs that are currently being funded are childcare subsidy-payments, prescription drug coverage, the State Worker’s Insurance Fund and prize payments to Pennsylvania Lottery winners.

Payments to the 14 universities of the Pennsylvania State System for Higher Education (PASSHE), which includes Shippensburg University, will not be processed, according to the Budget FAQs page on pa.gov.

Because PASSHE has yet to receive state funding, it cannot allocate money to its universities, causing them to rely primarily on reserve funds, fees and student tuition to pay the bills, according to Kenn Marshall, the PASSHE media relations manager.

Shippensburg University is facing financial challenges regardless of the budget impasse, because of a consistent decline in the state appropriations funding it has received for more than a decade.

“Funding from the state has decreased dramatically since [PASSHE] was founded,” said SU President George “Jody” Harpster. He said PASSHE cut about $40 million from SU’s budget in the past 12 years. Recent cuts left SU facing a $6 million deficit, which the administration is solving by asking departments to reduce their expenditures by 6 percent.

PASSHE announced yesterday it plans to change employee health care coverage to save about $3.5 million a year. About 15 percent of all PASSHE employees will be affected by the change, which will start on Jan. 1, 2016. The affected employees will contribute an estimated $3-14 more per pay period toward their insurance, according to a PASSHE press release.

Share