University Park, PA (WJAC) — Penn State administrators on Wednesday provided an update on the university's budget after announcing several months ago that the university is 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 are 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 may include moving away from making the same cuts across the board.
“Across the board, cuts don’t address changing student needs, student demands and student interests.”
Recent news that Penn State is looking to consolidate its law school operations has led to concerns about it possibly being duplicated for other university colleges and departments.
“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.”
However, an overriding question remains about staffing levels.
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.
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