Penn State's president warns 'Lean years ahead.'

UNIVERSITY PARK — Penn State President Graham Spanier warned university faculty to prepare for finances that may be "tighter than usual" for the next year or two.

Spanier made the comment Tuesday to the Faculty Senate. He said while higher education is less affected by the country’s financial crisis than other institutions, it is still impacted.

Spanier said it could be difficult for universities such as Penn State to borrow money, which would affect building plans. Higher interest rates in the future could also slow building projects.

The state’s revenues are also in decline, Spanier said, which affects appropriations to the university.

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