Statement by President Graham B. Spanier
House and Senate Appropriations Committees
Tuesday, February 27, 2007
This year Penn State marks 152 years of service to the Commonwealth, and at no time in the University's history has our mission been more critical to the lives of Pennsylvanians or more important to the economy of this state. As you confront the very difficult challenge of allocating the state's limited resources, we ask your consideration of the vital role that Penn State plays in the Commonwealth's economic health and the hope it provides to all who aspire to something greater in their lives.
The success of a University can be measured in many ways. Members of this legislature should take pride in the fact that Penn State has become the most popular university in America. Last year we received nearly 95,000 applications for admission in all our programs, and for Fall '07 we are running more than 5,000 applicants ahead of last year's record pace, a number unprecedented in American higher education.
Importantly, the percentage of students who accept our offer of admission increased dramatically, probably the surest sign of the value that students and families see in a Penn State degree.
The University now has nearly 500,000 living alumni and the largest dues-paying alumni association in the country.
But our success is not just about popularity. This year our research expenditures will reach approximately $700 million. This funding comes competitively, primarily from the federal government and from industry, and has a profound impact on job creation and economic growth in the Commonwealth, as well as on improving the lives of the citizenry through the new discoveries that come from this work.
This year our research efforts have produced important discoveries in medicine, where most recently we have uncovered a breakthrough treatment for Crohn's Disease; in earth and mineral sciences, where our efforts to convert coal to jet fuel have produced advances that may revolutionize energy use and invigorate an important Pennsylvania industry; in astronomy, where Penn State scientists have made important steps in gaining insight into the origins of our universe; in defense research, where Penn State ranks second in the United States; and in agriculture, where Penn State is the principal source of support for the Commonwealth's largest industry.
Because of the important role that Penn State plays in agriculture in this state, I must draw your attention to the fact that the proposed budget by the governor includes no increase in funding for Agricultural Research or Cooperative Extension, nor does it provide any increase for the Pennsylvania College of Technology. We are proposed for an overall increase of 1.6 percent, smaller than other state-related institutions, and far less than the increase recommended for the State System of Higher Education schools and the community colleges.
As you know, we cannot support Agricultural Research and Cooperative Extension with undergraduate tuition, so we must seek additional state support for inflationary cost increases in these areas. Penn State operates in every county of the Commonwealth. In fact, we operate out of 138 separate locations in Pennsylvania. All of these locations are very moderately staffed. Last year, after the governor's initial budget called for no increase in these areas, the legislature was able to add a $4 million increase, which allowed us to meet our inflationary costs, and I would like to again ask for your support of these essential areas of service.
The governor's budget provides an increase of more than 3 percent for the community colleges, presumably to support the State's need for applied education, yet the largest producer of such associate degree and baccalaureate degrees is the Pennsylvania College of Technology. This critical part of Penn State was inexplicably recommended for no increase by the governor.
The appropriation of state funds to public higher education is an investment in our future. As we have previously reported to this committee, economic impact studies have shown Penn State to be the leading driver of Pennsylvania's economy. Appropriations to Penn State have a great return on investment.
Although we are appreciative of the continued support that the governor and legislature have shown to Penn State, and are conscious of the difficult budget challenges the state faces, we nevertheless call on your support for our mission and ask for an increase in funding to Penn State that is at least on par with that for other higher education entities such as the State System of Higher Education and the community colleges.