UNIVERSITY PARK, Pa. — The Penn State Board of Trustees Committee on Finance, Business and Capital Planning today (Sept. 13) recommended for approval a 2019-20 University budget plan that includes a request to the Commonwealth to increase Penn State’s total appropriation by $19.6 million, for a total of $347 million in state support. The plan still requires approval from the full board and will be considered at the body’s Sept. 14 meeting.
If the Commonwealth provides the requested appropriation for 2019-20, Penn State will keep base tuition increases for Pennsylvania residents as low as possible to fund the second year of the University’s five-year capital plan, which was approved by the Board of Trustees in September 2017.
“Penn State is grateful to Gov. Tom Wolf and the General Assembly for increasing our appropriation in two of the last three years, as it has allowed us to hold the line on tuition,” said Penn State President Eric. J. Barron. “We are hopeful for additional funding again this year from the Commonwealth, which is critical for Penn State to provide an in-state tuition rate for our more than 50,000 resident students. The Commonwealth’s investment in Penn State is an investment in our state’s communities and people, and together we have contributed immeasurably to the quality of life, economic development, agricultural productivity, and medical care in Pennsylvania.”
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 in Williamsport and the Penn State Health Milton S. Hershey Medical Center in Hershey, all in support of Penn State’s land-grant mission to benefit the citizens of Pennsylvania.
If the board approves the funding plan and the state provides the requested support, the University’s appropriation would increase by 6 percent, from $327.4 million this year to $347 million in 2019-20.
Penn State’s 2019-20 appropriation request includes:
- $251.6 million for the University’s Educational and General Budget, an increase of 6 percent, or $14.2 million, over 2018-19. In addition to offsetting the cost of tuition for Pennsylvania students, this funding supplements the University’s efforts to address access and affordability and to promote job creation and economic development in Pennsylvania.
- $24.1 million for Pennsylvania College of Technology in Williamsport, an increase of 6 percent, or $1.4 million, to build on recent increased investments from the Commonwealth to expand instructional capacity for high-demand technical fields.
- $57.1 million for Agricultural Research and Cooperative Extension, an increase of 6 percent, or $3.2 million, to cover inflationary cost increases and invest in several high-priority issues, including efforts to protect Pennsylvania’s grape, tree-fruit, hardwood and nursery industries against the invasive spotted lanternfly.
- $14.2 million for Penn State Health Milton S. Hershey Medical Center, an increase of 6 percent, or $804,000, for state and federal medical assistance funding.
This is the first step in the appropriations process, and there are many factors that contribute to a final University budget, which will be adopted by the Board of Trustees in July 2019. Once approved by the board, the University’s 2019-20 budget plan and state appropriation request will be available publicly at https://budget.psu.edu/.