1998-99 Appropriation Request Focuses On Competitiveness Funding

9-12-97
University Park, Pa. -- The Penn State Board of Trustees approved today (Sept. 12) a request for the 1998-99 state appropriation of $314,296,000, an increase of $24,580,000 over the total 1997-98 appropriation of $289,716,000.

Penn State President Graham B. Spanier told the Board of Trustees, "The 1998-99 appropriation request reflects a cooperative effort among all of Pennsylvania's public colleges and universities to advance a four-year funding plan to make the Commonwealth and its public higher education institutions more competitive nationally."

The request includes an inflationary appropriation increase for basic operating cost increases of 3.5 percent, totaling $10,144,000, and competitiveness funding with an increase of an additional 5 percent, totaling $14,436,000.

"The role of Pennsylvania's public colleges and universities is critical to developing an educated populace, one capable of meeting the full range of workforce demands and also of producing civic and social leadership at the highest levels," Spanier said. "Public higher education also can help the state to develop and sustain new ventures that can compete successfully in the global economy and provide jobs to residents.

"Yet by virtually every measure, Pennsylvania lags behind its competitor states in support for public higher education," he said.

Penn State's appropriation request includes planning priorities developed through the University's strategic planning process. Several areas have been identified for special investment. These areas will contribute significantly to the Commonwealth's progress and quality of life, Spanier said.

Penn State's highest priority for competitiveness funding remains the creation of 75 additional faculty positions to improve the quality of the educational experience for students, totaling $4.4 million.

"This year, we are able to fund approximately 100 new faculty through a combination of internal reallocation, new state funds and tuition," Spanier said. "But this still leaves Penn State more than 500 positions short of the number required to bring our student-faculty ratio to the average of the other State-related universities.

Competitiveness funds are also requested for information technology and libraries ($2.8 million), life sciences ($1 million), and critical academic program priorities ($1.4 million).

Other needs for competitiveness funding are deferred maintenance for projects at all campuses ($1.5 million); a continuing special investment in Agricultural Research and Cooperative Extension ($2.2 million); College of Medicine ($561,000) for medical education; and Pennsylvania College of Technology ($582,000) for programs in environmental technology and plastics and polymer technology.

Penn State's budget plan includes basic operating cost increases such as modest salary adjustments for faculty and staff, employee benefits and fuel and utilities cost increases, and the continuation of the President's Excellence Fund established in 1997-98.

"The University will continue its program of internal budget reductions that is part of the current five-year strategic planning process," Spanier said. "We expect to generate $3.5 million for internal reallocation -- $1.5 million to help fund basic operating costs increases and $2 million targeted for highest priority program needs.

If Penn State receives the requested appropriations increase, the basic tuition increase for 1998-99 will be 3.2 percent, or an increase of $90 per semester for resident lower-division undergraduate students at University Park. The actual tuition increase for students will vary, as a result of the phased differential tuition program begun this fall semester.

"An increased investment in Penn State by the Commonwealth will return far more value than the dollars involved," Spanier said. "Penn State works hard to eliminate financial, geographic and programmatic barriers to quality higher education. Yet, we must also have a strong partnership with the Commonwealth to continue the tradition of excellence and to assure access to higher education for the people of Pennsylvania."

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Contact: Vicki Fong (814) 865-9481 office (814) 238-1221 vyf1@psu.edu