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PSU, schools wait for money

STATE COLLEGE — Penn State and all three other state-related institutions were still waiting Wednesday for their appropriations, despite the end of Pennsylvania's state budget stalemate.

Money that aids the budgets of Penn State, Lincoln, Pitt and Temple was not included in the budget bills signed by Gov. Ed Rendell on Friday, more than three months after the start of the fiscal year.

The University of Pennsylvania, which is not a state-related school, also stands to receive a substantial chunk of the $730 million in discretionary funding for universities, hospitals and museums that is on hold in the House.

Rendell's press secretary Gary Tuma said Wednesday the money is being held up until the politically divided Legislature irons out disagreements over approving a bill to legalize and tax table games at slot-machine casinos.

Passing a table games bill "was one of the requirements that the governor established as absolutely necessary to producing a balanced budget because it was the responsible thing to do," Tuma said.

Rendell and legislators included the expected $200 million in revenue from legalizing table games this fiscal year as part of a puzzlelike $27.8 billion budget blueprint that closes Pennsylvania's multibillion-dollar, recession-driven shortfall.

However, Senate Majority Leader Dominic Pileggi, R-Delaware, said Wednesday that the budget agreement leaves a projected surplus of more than $200 million this fiscal year. That means there is no reason for the House to hold up approval of the university, hospital and museum money, he said.

Talks between the House and Senate to sort out competing table games bills are effectively stalled this week.

House Democrats are pressing legislation that would impose higher license fees and tax rates on table games than Senate Republicans support. The table games bill being supported by House Democrats also would triple the number of slot machines allowed at the state's miniature "resort" casinos to 1,500, a provision opposed by Senate Republicans and the state's larger casinos.

Neither the House nor the Senate is in session this week, and Pileggi said he does not expect to meet to discuss the table games bills with other top legislators until Monday.

That means the schools must continue to cover funding shortfalls by dipping into reserves. Penn State has the biggest budget hole, waiting on roughly $334 million from the state, or 9 percent of its budget for the current fiscal year.

Temple is supposed to receive about $173 million; Pitt, about $168 million; Penn, about $34.5 million; and Lincoln about $14 million.

The holdup does not affect more than $400 million in tuition grants for about 172,000 college students distributed by the Pennsylvania Higher Education Assistance Agency.

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