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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

FY 2004
Actual

FY 2005
Available

FY 2006 Final
HB 829

% INC.
Over 2005

Medical Instruction

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

44301

42946

44022

44866

1.9

 

 



 
  Almanac, Vol. 52, No. 1, July 12, 2005

ISSUE HIGHLIGHTS:

Tuesday,
July 12, 2005
Volume 52 Number 1
www.upenn.edu/almanac

 

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