CED Budget And Capitol Day Presentation 2010

College Budget UpdateCapitol Day2010/2011

Mary Wirth, Director of College Relations and CommunicationsMary Seaton, Assistant Director

College of Agricultural SciencesBudget Projections 2009/2010ESTIMATED Total All Sources= $170,719,755

State Funding History Overview – Base Funding

ARRASupplements

ARRA2008/2009

ARRA2009/2010

Ag Research $1,536,000 $1,536,000

Ag Extension $1,823,000 $1,823,000

Base Funding 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Ag Research $22,922,000 $23,094,000 $23,094,000 $25,094,000 $25,595,000 $24,058,000 $24,058,000

Ag Extension $27,580,000 $27,787,000 $27,787,000 $29,787,000 $30,384,000 $28,561,000 $28,561,000

Federal ARRA Funding

State Funding History – Base Funding

*Actuals after 6% mid-year rescission.  ARRA funds will be used to restore the 6% withheld in FY2008/09, as required by the legislation, to bring us back to the FY 2008/09 Initial Authorized Levels of $25,594,000 and $30,384,000.

ARRA Restoration of 2008/2009 Rescission to be Paid in 2009/2010

Ag Research $1,536,000

Ag Extension $1,823,000

Base Funding 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 *2008/2009 2009/2010

Ag Research $22,922,000 $23,094,000 $23,094,000 $25,094,000 $25,595,000 $24,058,000 $24,058,000

Ag Extension $27,580,000 $27,787,000 $27,787,000 $29,787,000 $30,384,000 $28,561,000 $28,561,000

State Funding History – Base Funding

ARRA Supplement2009/2010

Total Authorized2009/2010 including ARRA

Ag Research $1,536,000 $25,594,000

Ag Extension $1,823,000 $30,384,000

Base Funding 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Ag Research $22,922,000 $23,094,000 $23,094,000 $25,094,000 $25,595,000 $24,058,000 $24,058,000

Ag Extension $27,580,000 $27,787,000 $27,787,000 $29,787,000 $30,384,000 $28,561,000 $28,561,000

Anticipated funding for FY2010/2011 as well.

State Funding History – Base Funding

Base Funding 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 *Authorized 2009/2010

Ag Research $22,922,000 $23,094,000 $23,094,000 $25,094,000 $25,595,000 $24,058,000 $24,058,000

Ag Extension $27,580,000 $27,787,000 $27,787,000 $29,787,000 $30,384,000 $28,561,000 $28,561,000

Permanent 6% reduction in base funding moving forward in 2011/2012

Cost Increases:

• Must pay $1.345M this year for Benefit/Health Care Cost increases even though there was not a general salary increase

• For every 1% increase in salaries it costs the college approximately $600,000

Note:

• The actual Ag Research and Ag Extension lines in the Pennsylvania enacted budget contain zeros, as the entire appropriation, except for the Penn College line, is lumped into a new “General Support” line

• In the appropriations bill the lines are absent altogether

• We have assurances from Old Main that the lines will be distributed as historically proportioned

Other State lines of interest:

• PDA research line started at $1 million, down from $1.64• Governor announced last week this line is reduced to zero

• Animal Health Commission funding started flat at $5.15 million• Governor announced last week this line is reduced by $249,000

• These additional cuts equate to college cut of around $250,000

• Penn State is a world-class research institution that is not only an economic engine for the Commonwealth, but generates and distributes science-based solutions for businesses and agencies that help them remain competitive and create jobs

• College plays a unique role in serving Pennsylvania agriculture as the sole land-grant institution in the state

Budget Talking Points:

• 150 year old partnership between the federal government, state government, county government, and Penn State

• The Agricultural Research and Agricultural Extension line items in the Penn State appropriations bill constitute Pennsylvania’s commitment to this partnership

• These appropriated dollars are the foundation to maintain research and extension services provided to the Commonwealth in each of the 67 counties

• These state services are not funded through tuition dollars, are unique to Penn State, and should be treated as such

These funds are an investment in Pennsylvania that have a proven track record of paying huge dividends to the state

They are also used to leverage federal competitive grant funding, enhancing Pennsylvania’s economy and providing federal research funds to focus on Pennsylvania priorities

• Agriculture is a major economic sector in Pennsylvania that has tremendous growth potential

• 2007 Pennsylvania Census of Ag shows a 9% growth farm numbers and 36% growth in market value of production ($5.8 Billion) from 2002 survey (does not include forest products – additional $5.5 billion)

• During economic crisis, small businesses - the bulk of agriculture in Pennsylvania - need help more than ever. State government needs to be investing in programs that help maintain and create jobs

Issue to be aware of:

• Many state legislators mistakenly believe that Ag Research and Ag Extension appropriation lines are in the PDA budget, commonly referred to as the “Ag Budget”

• These funding lines are in the Non-preferred Penn State Appropriation Bill

• Sponsored by PSAC and PCCEA• Intended to be a visible show of support• Focused on constituents/advocates• Budget briefing to ensure a clear, consistent message• All legislators are visited• Communicate relevance in their district• Purpose is to make them care

College Capitol Day: March 9, 2010

CEDs are asked to identify 3 advocates from their county to attend Capitol Day

• Advocates will be assigned to groups by their legislative requests

• CR office will schedule appointments - not advocates or CEDs

• Every effort is made to match advocates to their own legislators

• Not every advocate will get to see all of their requested legislators

• Advocates from the same county may be placed in different groups

• Advocates may be asked to visit other than the own legislators

Key Points to communicate to advocates:

• Size of group• Number of advocates attending from each district• Date of Registration• Legislator’s schedule• Number of visits possible in the day

Limiting Factors in Setting up Appointments:

• Will have one-pager with clear, concise message• More important they communicate importance of programs• Will have mission one-pagers with impacts

Budget Briefing

• Needs to be strategic• Welcome to attend the briefing and lunch• Will not participate in legislative visits• Possibly host ice cream social • Volunteer as scoopers at ice cream social

Youth Participation

Budget Message Challenges for Capitol Day:

• Do not have separate lines to lobby in bill

• Penn State Budget will likely be flat due to ARRA funding for year three

• State revenue shortfall

• Will not have budget message until after the Governor presents his budget and budget hearings are over

• 8:45 AM - 9:15 AM College Capitol Day Registration

• 9:15 AM - 9:30 AM Welcome and Introductions

• 9:30 AM - 9:50 AM College of Ag Sciences Budget Briefing

• 9:50 AM - 10:10 AM PSAC/PCCEA Budget Request

• 10:10 AM - 10:30 AM College of Ag Sciences Legislative Training Session

• 10:30 AM - 10:45 AM Legislative Teams Assembled

• 10:45 AM - 4:00 PM Legislative Visits

• 11:00 AM - 1:00 PM Lunch

• 1:30 PM - 4:00 PM Ice Cream Social

Agenda:

• Important for CEDs to foster legislative relationships at the local level

• Capitol Day does not take the place of local, district visits

• Encourage CEDs to identify board members (3) to meet periodically with local legislators

• Invite local legislators to annual meetings and events

County Legislative Contacts:

• Ag Action Network - ID advocates in key districts• APD Luncheons• Research Tour / Dean’s Tours• Capitol Day• Action Alerts• Communications / Impacts• Branding

Opportunities for Partnership with CEDs

CED interactions with legislators at the local level:• Focus on programs/impacts in district

Strengths:• Experts versus Advocates• Science versus Self• Unbiased versus Biased

Stay Away From:• Policy Positions

• Support/Opposition Legislation

• Appropriations

• Influenced by AD 50 • Let me know so we can keep appropriate University/College

personnel informed

• Comply with Lobbying Disclosure Laws• Includes direct and indirect costs• Forms can be found at http://www.govt.psu.edu/PLDAinstructions.html

Things to be aware of:

Questions?