University Park, Pa. — Penn State's Board of Trustees today (Sept. 19) approved the University's proposed 2009-10 budget plan and state appropriation request. The University is seeking an appropriation increase from the Commonwealth of $24.5 million, or 6.9 percent. Of this amount, $18.6 million is requested for the Educational and General line-item, and $4.9 million for its other line-items. An increase of $1 million also is being requested in State and Federal Medical Assistance funding provided to the Penn State Milton S. Hershey Medical Center through the Pennsylvania Department of Public Welfare. The total appropriation request for 2009-10 is $377.3 million.
The funds will be used to help support the University's basic operating increases, with emphases on competitive faculty and staff salary adjustments, escalating health-care costs, rapidly increasing fuel and utilities costs, deferred maintenance and facilities improvements, and strategic academic program initiatives.
"As Pennsylvania's sole land-grant institution, we look forward to strengthening our partnership with the state so we can do even more to address our most pressing needs. This year's appropriation request will allow us to advance many of the priorities of the state government and benefit the people of the Commonwealth," said Penn State President Graham B. Spanier.
If the state is able to provide these requested appropriation increases, the tuition rate increases for Pennsylvania resident students would be 4.9 percent for students at the Commonwealth Campuses, and 5.5 percent at the University Park campus for 2009-10.
For more than a decade the University has aggressively trimmed budgets, producing $173 million in internal budget reallocations.
"We are making every effort to maximize the impact of our tuition and state appropriations, yet the fact remains that tuition is still a hardship for many families," Spanier said. "Every year, we lose talented students due to the cost of a Penn State degree. Many undergraduates work multiple jobs while carrying a full course load, yet students graduate with an average personal debt of more than $26,000." Last year, 74 percent of undergraduates received some form of financial assistance and about 60 percent of Penn State students have loans.
"We remain committed to cost-containment and belt-tightening measures. However, the continuing erosion of its funding support will negatively affect the University's ability to provide the programs and services so critical to Pennsylvania's future," said Spanier. "We believe that this is a responsible request, continuing the pattern of Penn State's exemplary stewardship of public resources. We believe that we are asking for a reasonable commitment, indeed an investment, from the Commonwealth so that we may continue to provide access to a Penn State education that meets the high standards that we and the public expect."