Board of Trustees committee recommends 2017-18 budget plan

UNIVERSITY PARK, Pa. — The Penn State Board of Trustees Committee on Finance, Business and Capital Planning today (Sept. 15) recommended for approval a 2017-18 budget request that seeks a $25.3 million increase from the state in the University’s Education and General appropriation, for a total of $350.5 million in support.

If the Commonwealth provides the requested appropriation, the University budget plan would include no increase in base tuition for Pennsylvania resident undergraduate students for the second time in three years.  The plan also includes a $2 million increase for need-based student aid.

“Keeping the cost of a college education affordable for our students while offering a world-class education is a top priority,” said President Eric Barron.

The plan still requires approval from the full board at the Sept. 16 meeting. If the board approves the plan and the Commonwealth provides the requested funds, the University's appropriation in total would increase from $315.7 million this year to $350.5 million in 2017-18.

Each year, state appropriations are used to lower Penn State tuition for Pennsylvania resident students; support Agricultural Research and Extension operations that have a profound impact on one of the Commonwealth’s largest industries; and provide critical funding for Pennsylvania College of Technology and the Penn State Hershey Medical Center, all in support of Penn State’s land-grant mission to benefit the citizens of Pennsylvania.

The appropriation request includes an increase of $25.3 million, or 11 percent, for the University’s Educational and General Budget. It also includes an increase of $5.7 million to cover cost increases and restore critical program funds in Agricultural Research and Cooperative Extension.

The University also is requesting funding in the amount of $22.3 million in continued support for the Pennsylvania College of Technology to build on recent increased state investments to expand instructional capacity for technical fields that are in high demand, and $14.9 million is requested for the Penn State Milton S. Hershey Medical Center in state and federal medical assistance funding.

The plan sets a target for more than $26 million in expense reductions. Cost savings initiatives include reductions in health care costs and programs to reduce operating subsidies for revenue-generating units.

This is the first step in the appropriations process, and there are many factors that will contribute toward a final University budget to be adopted in July 2017 by the Board of Trustees.

Last Updated February 24, 2017