Harrisburg >> The Board of Governors of Pennsylvania’s State System of Higher Education approved a request for an additional $49.9 million from the state next year, seeking the full amount of funding needed to offset a projected budget shortfall.
The increase, if received, could allow the State System and its 14 universities to hold the line on tuition in 2015-16.
“A year without a tuition increase would be really beneficial to students and their families,” Todd Garrett, a Board member and student at Clarion University of Pennsylvania, said during the discussion on the request.
The State System is receiving $412.8 million from the state this year, which will support about one-fourth of its 2014-15 operating budget-down from nearly two-thirds two decades ago. The percentage of the budget covered by the state appropriation has declined steadily as costs continue to rise. Major cost increases next year, as they have been in the past, will be in the areas of healthcare and pensions, which combined will total about $30 million. Pension contributions are mandated by the state, for which the System receives no additional funding.
Combined with other anticipated cost increases and revenue reductions, the System’s overall operating budget will rise by almost $50 million next year, perhaps more. That is the amount the Board is seeking in increased funding from the state.
“This request is intended to begin the conversation with our partners in the executive and legislative branches on how we can reinvigorate higher education in the Commonwealth of Pennsylvania,” said Board of Governors Chairman Guido M. Pichini. “We look forward to working with them for the benefit of our students and the betterment of the State System.”
The State System has not received an increase in its state appropriation in seven years and is receiving essentially the same amount of funding this year as it did in 1997-98-17 years ago. Despite level or reduced state funding over most of the last decade, the Board has limited annual tuition increases in order to assure the cost of attending any of the State System universities remains affordable. During that same time the universities reduced their costs through various measures by about $270 million.
“Our universities have made significant strides in becoming more efficient while making certain they are continuing to meet the needs of students and the Commonwealth,” said Chancellor Frank T. Brogan. “We look forward to continued conversations with our friends in the General Assembly and the Governor’s Office on the vital role our universities play in Pennsylvania and the appropriate level of support for the State System.”
The appropriations request approved by the Board is the first step in the annual budget process. It will be submitted to the Governor’s Budget Office later this month. The Commonwealth’s 2015-16 general fund budget, which include the State System’s appropriation, must be approved by June 30, 2015.