UNIVERSITY PARK, Pa. — The Pennsylvania General Assembly passed Penn State’s 2023-24 nonpreferred appropriations bill on Nov. 15 after a delay of more than four months. The bill, which has been signed by Gov. Josh Shapiro, includes flat funding of $242.1 million for Penn State’s general support appropriation — money that Penn State passes on to Pennsylvania students as an in-state tuition discount. The bill also includes a $3.235 million (12%) increase for Pennsylvania College of Technology. In August, the General Assembly approved level funding for Penn State Agricultural Research and Extension and Penn State Health and the College of Medicine as part of the state’s main budget legislation.
Penn State’s general support appropriation last increased four years ago, when the state approved a 2% increase for the 2019-20 fiscal year. This funding is used to lower the cost of tuition for Pennsylvania-resident students, directly benefiting more than 43,000 in-state students and their families for the current academic year.
“Penn State is always appreciative of the state’s support. I am grateful funding was approved without additional delay, as these state dollars are absolutely critical to our Pennsylvania students,” said Penn State President Neeli Bendapudi. “As 160-year partners with the commonwealth, we are eager to continue the dialogue with leaders in Harrisburg about how increased investment in Penn State and our students can help Pennsylvania meet its long-term economic goals. I want to personally say thank you to the thousands of Penn State advocates who took the time to let their elected officials know just how important Penn State’s funding is to all Pennsylvanians, and to the thousands of Penn State employees who have had their salary increases delayed as we redirected funds to keep our commitment to our in-state students through this impasse.”
In July, the Penn State Board of Trustees approved the University’s 2023-24 and 2024-25 operating budgets, which include tuition freezes for in-state undergraduates at the University’s Commonwealth Campuses and a modest 2% tuition increase for Pennsylvania-resident undergraduates at the University Park campus both this academic year and next year. While Penn State’s budget planning assumed a 7.1% ($17.2 million) increase in general support funding, as proposed by Shapiro, Bendapudi said the University has been preparing for the possibility of flat funding and, as a result, there will be no impacts to students or the approved tuition rates.
Penn State’s 2023-24 budget also includes a 3% pool for unit executives to award merit-based general salary increases (GSI) to University employees. While state funding was delayed, the University temporarily redirected funding for GSI to support the in-state tuition discount. Now that state funding has been approved, Penn State will move forward with implementing GSI for faculty and staff.
In its 2023-24 funding request to the commonwealth, Penn State had sought a 47.6% ($115.2 million) general support appropriation increase to match the per-in-state-student funding received by the commonwealth’s other public universities. Penn State’s 2024-25 appropriation request, passed by the University’s Board of Trustees in September, also seeks to narrow the per-student funding gap. At approximately $5,757 per in-state undergraduate, Penn State’s per-student funding is last among Pennsylvania’s public universities, trailing the state’s other public institutions by between $3,000 and $3,700 per in-state student. Bendapudi said closing that disparity, along with working in partnership with the commonwealth to design a performance-based funding model for higher education, remain priorities for the University in the years ahead.
Penn State’s complete 2023-24 state appropriation totals $344.8 million and breaks down as follows:
- General Support: $242.1 million, representing level funding from 2022-23. The general support appropriation helps to fund Penn State’s discounted in-state tuition rate that saves the average Pennsylvania-resident undergraduate more than $15,000 annually compared to a nonresident student. These dollars also enable Penn State to invest in the quality of its academic programs so that it can attract the state’s top students and prepare them for successful careers in Pennsylvania.
- Agricultural Research and Extension: $57.7 million, representing level funding from 2022-23. Agricultural research and extension programs are not funded by tuition, so appropriation increases are necessary to keep pace with rising costs and to leverage matching federal and county dollars. This funding supports Penn State Extension and the vital research conducted by Penn State’s College of Agricultural Sciences, benefiting citizens in all 67 Pennsylvania counties and helping the state’s agriculture industry combat challenges ranging from avian influenza to the spotted lanternfly.
- Pennsylvania College of Technology: $29.9 million, representing a $3.235 million (12%) increase from 2022-23. A Penn State affiliate, Penn College offers hands-on, applied-technology education that is critical to Pennsylvania’s workforce needs. Like Penn State’s general support funding, Penn College’s funding last increased in 2019-20.
- Penn State Health and the College of Medicine: $15.1 million, representing level funding from 2022-23. This funding is used for medical assistance to provide access to high-quality health care for Pennsylvanians with limited financial means.