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GOVERNMENT AFFAIRS UPDATE
Commonwealth Relations
Penn’s Non-preferred Appropriation
On July 6, the Pennsylvania House and Senate gave final approval to House Bill 829, Penn’s FY 2005-06 non-preferred appropriation bill and sent it to the Governor for his expected signature. This bill provides a total of $44,866,000 to the University, an increase of 1.9% over the amount appropriated in FY 2004-05 (see chart below). The Veterinary School appropriation was increased by 0.5% over the amount proposed by the Governor, resulting in a 2.0% total increase for the School. The University Museum appropriation was restored to last year’s level (the Governor had proposed a 10% cut). All other line items were approved at the level proposed by the Governor (1.5% increase).
On a line item basis, HB 829 provides the following appropriations:
Veterinary School - $38,111,000
Medical School - $3,919,000
Cardiovascular Studies - $1,554,000
Dental Clinics - $1,051,000
University Museum - $231,000
Commonwealth’s General Fund Budget
The General Assembly also approved HB 815, the Commonwealth’s General Fund Budget. This budget restores most of the Governor’s proposed Medical Assistance (MA) cuts to hospitals and patient benefits. All cuts in MA supplemental payments to hospitals (outpatient disproportionate share, Community Access Fund, MA medical education, and Tobacco Settlement uncompensated care) were restored. The impact of these proposed cuts to UPHS would have been an estimated $15 million annually. Second, the budget eliminated most of the major proposed limitations on MA patient benefits affecting UPHS, including caps on annual inpatient visits. UPHS had estimated an annual impact of $17 million if these benefit limitations had been approved.
The final budget deal rejected the Governor’s proposal to reallocate Tobacco Settlement funding, including substantial reductions to health research funding. Under the Governor’s proposal, Penn’s annual formula research grant would have been reduced by about two-thirds. In FY 2005-06 this would have resulted in a loss of approximately $6 million in formula funds to the University. The General Assembly disagreed with the Governor’s proposal and, instead, approved only the use of approximately $40 million in interest from the Tobacco Settlement endowment and a one-year diversion of one-quarter of the prevention and cessation funds to help restore MA cuts.
—Paul Cribbins, Assistant Vice President of Commonwealth Relations
University of Pennsylvania Non-Preferred Appropriation
(in thousands of dollars)
|
|
FY 2003
Actual
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FY 2004
Actual
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FY 2005
Available
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FY 2006 Final
HB 829
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% INC.
Over 2005
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Medical Instruction
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3953 |
3832 |
3861 |
3919 |
1.5 |
Dental Clinics
|
873 |
846 |
1035 |
1051 |
1.6 |
Cardiovascular Studies
|
1568 |
1520 |
1531 |
1554 |
1.5 |
Veterinary School
|
37676 |
36523 |
37364 |
38111 |
2.0 |
University Museum
|
231 |
225 |
231 |
231 |
0.0 |
Total University
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44301
|
42946
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44022
|
44866
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1.9
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Almanac, Vol. 52, No. 1, July 12, 2005
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ISSUE HIGHLIGHTS:
Tuesday,
July 12, 2005
Volume 52 Number 1
www.upenn.edu/almanac
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