State budget late? It may not be all bad

By CHRISTINE VIDAL
News Services Editor

The April 1 budget deadline has come and gone in Albany for the 15th year in a row, but that's not necessarily a bad thing, according to Janet Penksa, associate vice president for university services.

Missing the deadline will give UB more time to pursue its agenda with legislators, Penksa told the Faculty Senate Executive Committee at its March 31 meeting.

She outlined the university's advocacy efforts in Albany, which, she said, so far have met "with some success." Penksa also offered insight into the budget process based on her experience as a former member of the legislature's professional staff responsible for preparation of the budget.

"It looks like it's going to be a long budget season in Albany," she said.

Part of the reason for the delay in passing the state budget is the different political philosophies among the governor, senate and assembly, she noted. "Everyone agrees there is a state (budget) surplus," Penksa said. But the big question is, how much of a surplus is there, and how should the funds be allocated? The governor, senate and assembly do not agree on the amount of the surplus, "and you can't negotiate a budget until you know what the number is," she said.

There also is disagreement over how to use the surplus. The governor and senate are advising fiscal prudence; the assembly takes a less-conservative approach, she noted.

"The issue is, how much to spend and how much to save."

The issue also is how much to spend on higher education.

Under the executive budget proposed by Gov. Pataki, funding for SUNY took a tremendous hit, and "the total is $200 million to bring higher education home," Penksa said, with UB's share of the shortfall estimated at $6 million.

While both legislative bodies would restore SUNY funding, the senate's proposal falls more than $11 million short of full restoration. The assembly's recommendation, in addition to full restoration, would increase funding for higher education by more than $25 million.

In terms of base costs, the senate's and the assembly's recommendations both would restore funding for negotiated salary increases. The assembly's proposal also would restore funds to cover inflation and revenue loss, although the senate's recommendation does not, a shortfall of $19.7 million.

"We're now focusing efforts on the senate and governor's office. In general, we're arguing for full base restoration," Penksa said.

Both senate and assembly proposals would restore funding for the Tuition Assistance Program and provide funding for new faculty lines in science and technology.

Of concern is a measure that would stretch funding for the five-year capital plan into a sixth year, a move that would amount "essentially to a 20 percent cut" in capital funding for 1999-2000, Penksa said.

Other legislative recommendations, she said, include senate proposals to establish a working group to evaluate the administrative and financial status of the SUNY Research Foundation, to establish a working group to review flexibility issues and the status of revenues at SUNY teaching hospitals and to create a new Office of Higher Education and Technology.

Assembly proposals include eliminating funding for the Charter School Institute; merging the Higher Education Services Corporation and its programs, such as TAP, into the state education department, and providing a $75 million package of tax credits and reductions for businesses and other taxpayers involved in university-sponsored research and technology transfer.