Budget impasse delays tuition grants

HARRISBURG, Pa. (AP) — Hundreds of millions of dollars in tuition grants for Pennsylvania college students is stuck in limbo because of a six-week-old state government budget impasse.
That means an anticipated 172,000 students do not know exactly how much money they will receive from the Pennsylvania Higher Education Assistance Agency.
Republican legislators are advocating $386 million, while Democratic Gov. Ed Rendell wants $460 million in grants.
Last year, the agency distributed $407 million, down from a record $454 million the year before, although that figure was pushed up by income from the student-loan agency.
The maximum individual grant award is $4,120.
For now, Penn State and many other schools say they will front the students' grant money for the fall semester if the budget is not finished by then.
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Schools don't receive first round of state money

School districts were scheduled to get their first payment from the state for the 2009-10 school year today. The statewide payment was a total of $416 million. Like state workers, schools didn't get their money because of the budget impasse.
"Until a budget is in place, the Department of Education cannot legally authorize payments to districts, meaning the districts will have to operate without the state's share of education dollars until lawmakers approve a spending plan," Education Secretary Gerald L. Zahorchak said in a news release.
The next monthly payment is scheduled for Aug. 27 and would total more than $876 million.