The student newspaper of Bucks County Community College

The Centurion

The student newspaper of Bucks County Community College

The Centurion

The student newspaper of Bucks County Community College

The Centurion

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President Shanblatt clears up budget crisis rumors

President+Shanblatt+clears+up+budget+crisis+rumors

While Bucks County Community College is considering borrowing up to $5 million if there is no resolution to the current budget standoff in Harrisburg, Bucks President Dr. Stephanie Shanblatt wants students and faculty alike to know that Bucks has things under control.
According to the Bucks County Courier Times, the Board of Trustees has recently given its consent for Bucks to seek out a “short term line of credit” from PNC bank. The Courier also pointed out that the money will be used if Bucks does not receive an expected allotment of $4.3 million from the state legislature by the end of December.
To better understand the rationale behind the steps that Bucks is taking to sustain its finances in case it does not get the expected funding from the state, an interview was conducted with the president of the college, Dr. Stephanie Shanblatt.
During the interview, Shanblatt thought it was important to explain the difference between getting a line of credit and taking a loan. Thus, based on the explanation provided by the president, Bucks would not receive a one-time $5 million loan from PNC. Rather, the line of credit would give Bucks access to funds that will be used on a needed basis.
When asked if she was worried that Bucks would go into debt as a result of the budget stalemate, Shanblatt said that, “the school is not broke and Bucks expects to get all of the money [its expected annual allocation] from the state once the budget is passed.”
Shanblatt also provided a brief overview of Bucks’ revenue streams and its major expenses. According to the president, Bucks has three main sources of funding. The school gets the bulk of its revenue from student tuition, it accounts for about 50 percent of the school’s funding. The rest of its funding comes from two key sources: the county and the state. Bucks receives $14 million from the county and $21 million from the state every year.
The state disperses the $21 million to Bucks in four installments. When asked whether the $21 million that the school gets from the state pays for some specific or mandated programs, Shanblatt responded that “Bucks channels all of its revenues into a general fund. After being moved into a general fund, the money is then allocated to where it is needed.” ,
Salaries, benefits, and other expenditures account for about 80 percent of the school’s expenses.
In the wake of the report that Bucks is taking steps to safeguard its finances, the move has raised concerns. To ease any fears that some students might have regarding the financial health of the school, President Shanblatt said that she “wants to reassure students that the school has a plan to deal with the budget impasse.” Shanblatt added that the “situation is being carefully monitored” and she wants students to know that the “school will get through this.” Shanblatt further noted that the school will open on schedule for the coming spring semester.
Knowing that a rise in tuition might also be a concern for either students or their parents, Shanblatt said that there would not be any uptick in tuition next semester. In case there might be any concerns among faculty members, Shanblatt assured that “everyone will be paid and there will not be any layoffs or furlough.”
Shanblatt also said that she wants both students and parents to know that Bucks tries “hard to keep its budget as low as possible while giving students a great education at a low price.”
Asked whether she has any message to the state legislature and the governor, Shanblatt urged them to “find a middle ground.” She also encouraged them to “summon the political will to take on those though issues for the good of the citizens of the state.”