Centre Co., PA (WJAC) — Penn State admitting a financial shortfall in the university budget as now they are implementing a hiring freeze through at least next summer.
As Centre County's largest employer, the university has a huge impact on the county's, and the larger region's, economy.
The hiring freeze, one of several steps Penn State says it’s now taking due to an operating budget deficit nearing two-hundred-million-dollars.
“It’s always a concern when you see local institutions talk about freezing hiring. I know they’re doing it so they can remain strong financially, so I don’t have a lot of concern.”
The university citing several factors for the hiring slowdown, including inflation, pandemic-related economic issues, and other budget challenges.
“Their funding from the state has been flat for several years, which really translates to a cut. So, they are operating at a deficit. You can’t do that forever.”
The university trustees recently raised tuition by five percent for the upcoming school year, but there's a lot of faith that Penn State's new leadership will be able to eventually balance the budget.
“When you see leadership taking action to shore up finances, I think it shows that they are in control of the situation.”
The university says expense reductions will be necessary, but there's no word on whether that could possibly include employee layoff.
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