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| 2002-03 BUDGET
PRESENTATION |
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 enn State has a long tradition of providing high
quality educational experiences for citizens of the Commonwealth while
producing cutting-edge research and technology, priorities that will be the key
to the state's future economic growth and progress. Through a system of
24 campus locations, Penn State is a cornerstone for Pennsylvania as it goes
about the important task of retooling its workforce to meet the complex
challenges of the future. Penn State's total enrollment of 81,704 for the
2001 fall semester is evidence of the University's popularity, its status as a
great public institution, and its ability to meet society's educational demands
for the future.
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| In the following pages, we present Penn State University's
most pressing budget priorities. In light of the recent downturn in the
economy and the projected shortfalls in state revenues, we understand the
financial challenges facing the Commonwealth. We recognize that this budget
request, developed for Board of Trustees approval before the economic downturn,
cannot be funded at the level requested. And Penn State stands ready to
do its part to assist the state. We believe, however, that it is
important not to lose sight of the larger goals shared by the University and
the Commonwealth. |
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| The Governor's proposed decrease in the appropriation for
Penn State, if allowed to stand by the legislature, will turn back the clock on
educational progress in Pennsylvania. A 5 percent cut for Penn State
amounts to a reduction of $16,741,000 in our budget, returning our
appropriation to approximately the 1999-00 level. When adjusted for
inflation, the proposed appropriation is actually $35 million less than the
1995-96 appropriation level. Penn State is already one of the most
efficient universities in the country, and we will continue our practices of
strategic planning, budget reallocation, and belt-tightening. |
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| Despite such efforts, the proposed decrease will present
serious challenges for the University, given the very real increases in
operating expenses, including rapidly escalating health care costs for our
employees, rising energy costs, maintenance of our aging physical plant, and
the need to attract and retain high quality staff and faculty by providing
competitive salaries. To reach the Commonwealth's goal of preventing
"brain drain" by keeping the most talented Pennsylvania students in the
Commonwealth, we must retain the highest quality faculty and continue essential
investments in our academic programs. |
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| Although Penn State is willing to
bear its fair share of the economic burden facing the Commonwealth, we are
disappointed that we are being asked, along with Temple University, Lincoln
University, and the University of Pittsburgh to carry a disproportionate share
of the responsibility. If the legislature does not restore the proposed
cut, Penn State ultimately will be forced to consider tuition increases that
are substantially higher than in recent years, even while we continue to engage
in cost-cutting measures. Such a step inevitably places a much greater
burden on students and their families and limits access to high quality
educational opportunities. Moreover, the impact of the cuts to our agricultural
research and cooperative extension programs will be profound, since no tuition
income is available to offset the loss of state appropriation dollars in our
line-item budgets. |
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| The table of requested appropriations at the end of the
document reflects the plan approved by Penn State's Board of Trustees in
September, 2001. The budget priorities presented in this document focus
on the areas of greatest need at Penn State, as well as those of critical
importance for the future of the Commonwealth. They will remain our priorities
for 2003-2004, if funding is unavailable this year. It serves as a
reminder of the true needs of a vibrant and healthy university. With the
support of the Commonwealth, Penn State will continue to be a vital force for
economic development within the state, while providing access to outstanding
educational opportunities for Pennsylvania's citizenry. |
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