Penn State Intercom......September 20, 2001

University committed to securing
increased funding from state

Tony Wagner, director of Government Relations, has been given temporary new responsibilities as special assistant to Gary Schultz, senior vice president for finance and business. Wagner's new assignment reflects the University's commitment to seek increased future funding support from the state.

He will begin his new assignment Oct. 1 and is expected to continue for a period of approximately 18 months, although October through December will be a transition period between his current and new responsibilities. With the change, Wagner will be relocating to 208 Old Main.

The University Trustees and administration are committed to enhancing the quality of Penn State. To accomplish this goal, increased funding is needed to maintain competitive salaries for faculty, cover increased cost of health-care benefits, address the University's large backlog of deferred maintenance and provide essential academic program support. Wagner will work with the newly formed Tuition Task Force and the Budget Task Force in developing and communicating the University's plans to the administration and legislative leaders in Harrisburg.

The current Ridge administration's unprecedented commitment of $200 million over five years in capital funding provided the opportunity for the University to develop a University-wide five-year capital plan. Nonetheless, the capital funding provided by the Commonwealth fell short of the University's most pressing capital requirements, andconsequently, the University has had to resort to raising tuition an additional 5 percent over six years to support debt service and operating cost for an additional $180 million of educational and general projects. In his new assignment, Wagner will assist in developing a capital funding proposal that will be effective in convincing the administration to more adequately support the University's capital funding requirements. Additionally,
Wagner will assist in refining the University's internal processes that link its capital plans with its cash flow requirements and debt financing plan.

Beyond the University's need to increase revenues, it needs to demonstrate that it is a good steward of the money it receives. Although the University already generally is recognized to be one of the most efficient universities, it needs to strive to better communicate and demonstrate that efficiency. Wagner will assist in compiling benchmark and assessment reports that will be effective in communicating that "efficiency story" to key stakeholders -- Harrisburg, students, parents and alumni.

Wagner is uniquely suited to fill this temporary assignment for the University. For more than six years as director of Government Relations, he has represented Penn State in Harrisburg. In that role he as been involved in communicating the University's operating and capital budget needs to policy-makers in both the executive and legislative branches of state government.

Before joining Penn State, Wagner served in the governor's budget office and was executive assistant to the budget secretary. In that role he helped develop the governor's executive budget -- including both operating and capital components -- and gained expertise in both the legislative appropriation process and executive budget process.

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