Budget Schedules

THE PENNSYLVANIA STATE UNIVERSITY
2007-08 OPERATING BUDGET

The Board of Trustees will be asked to consider and approve Penn State's operating budget at its meeting on July 13, 2007.

SUMMARY OF THE BUDGET PLAN

For 2007-08, Penn State's operating budget plan provides a level of support that will maintain the high quality of the educational experience for our students and will significantly moderate tuition increases. The plan reflects a 4.9 percent increase in the University's general funds budget.

     At this writing, action has not been taken on Penn State's 2007-08 appropriation by the General Assembly. As a result the budget plan includes an estimated appropriation that is based on the amount proposed in the Governor's Executive Budget recommendation.

     The proposed budget keeps tuition increases at the lowest possible level. The tuition rate increase for lower division Pennsylvania resident students at the University Park campus will be 5.5 percent, while the tuition rate increase for lower division non-resident students at University Park will be 4.3 percent. For the Commonwealth Campuses, the tuition increase for both lower division resident and non-resident students will be 4.5 percent.

     Additional tuition income of $14.8 million is included in the budget plan as a result of enrollment growth experienced at University Park for the 2006-07 academic year. Without this growth, an additional tuition increase of 2.0 percent would have been required to fund the expense increases included for 2007-08.

     The budget also includes internal expense reductions totaling $10.1 million from the academic and administrative units, representing a one percent across-the-board reduction in departmental operating budgets and a reduction in central budgets. This will be the sixteenth consecutive year that the University has had a program of internal budget reductions and reallocations in effect. An increase of $3.5 million in non-tuition income is projected for 2007-08. In combination, internal budget reductions and non-tuition income enhancements total $13.6 million. This is equivalent to $220 per year in tuition for each student, or 1.8 percent in avoided tuition increase.

     Funds are allocated for a select group of strategic investments and to provide for modest salary adjustments for faculty and staff. The budget also includes funds for escalating health care and other insurances, for rapidly increasing fuel and utilities costs, for the maintenance and operation of new and newly remodeled facilities scheduled to come on-line in 2007-08, for the University's capital improvement program, and for need-based student aid. An increase of $10 per semester in the student information technology fee, which is the lowest increase of the fee in nearly a decade, will provide critical needed funds for improvements in libraries and information technology.

2007-08 TOTAL OPERATING BUDGET

Penn State's adjusted total operating budget for 2006-07 is $3,207,089,000. For 2007-08, the University is proposing changes totaling $121,094,000, or 5.0 percent, in general funds, restricted funds, and auxiliary enterprises, plus $82,247,000 at the Milton S. Hershey Medical Center, for a total operating budget of $3,410,430,000. A summary of the budget is shown on Table 1.

STATE APPROPRIATION

Penn State's estimated total appropriation for 2007-08, based on the Governor's Executive Budget recommendation, is $332,882,000 (see Table 2). This reflects an increase of 2.0 percent in the Educational and General line item. No increases are included in the line items for the Recruitment and Retention of Disadvantaged Students, Agricultural Research, Cooperative Extension and the Pennsylvania College of Technology.

The line-item appropriations for the College of Medicine at the Milton S. Hershey Medical Center again will be eliminated from Penn State's appropriation bill. Instead, following the approach initiated two years ago, additional State and Federal Medical Assistance funds estimated at $14,495,000 will be directed to the Milton S. Hershey Medical Center. These funds will be transferred to the Medical Center through the Pennsylvania Department of Public Welfare.

The GENERAL FUNDS BUDGET

     The components of the general funds budget include: the Educational and General budget, which supports most of the University's basic teaching, research, and public service programs; the budgets for Agricultural Research and Cooperative Extension, which remain separate from the Educational and General budget by virtue of their separate line-item funding: the College of Medicine at the Milton S. Hershey Medical Center; and the Pennsylvania College of Technology.

     Excluding the College of Medicine and the Pennsylvania College of Technology, a total of over 93 percent of the income supporting the 2007-08 general funds budget will come from tuition (71.7 percent) and state appropriations (21.5 percent).

     The sections that follow focus on the changes in the general funds budget, including the Educational and General budget, Agricultural Research and Cooperative Extension, the College of Medicine at Hershey, and the Pennsylvania College of Technology.


TABLE 1 TOTAL UNIVERSITY BUDGET SUMMARY OF 2007-08 CHANGES

	Adjusted Budget 2006-07	Changes	2007-08 Budget
General Funds:
Educational and General	$1,319,613,000	$64,959,000	$1,384,572,000
Agricultural Research	27,444,000	0	27,444,000
Cooperative Extension	31,228,000	0	31,228,000

Sub -Total	1,378,285,000	64,959,000	1,443,244,000
College of Medicine	79,801,000	6,467,000	86,268,000
Pennsylvania College of Technology	83,183,000	4,621,000	87,804,000

Total - General Funds	1,541,269,000	76,047,000	1,617,316,000

Federal Funds - Agriculture	18,360,000	0	18,360,000

Restricted Funds:
Educational and General	424,950,000	21,240,000	446,190,000
Agricultural Research	26,145,000	1,305,000	27,450,000
Cooperative Extension	13,910,000	700,000	14,610,000
College of Medicine	67,000,000	5,000,000	72,000,000
Pennsylvania College of Technology	26,684,000	(516,000)	26,168,000

Total - Restricted Funds	558,689,000	27,729,000	586,418,000

Auxiliary Enterprises:
Educational and General	258,515,000	14,787,000	273,302,000
College of Medicine	3,655,000	165,000	3,820,000
Pennsylvania College of Technology	17,709,000	2,366,000	20,075,000

Total - Auxiliary Enterprises	279,879,000	17,318,000	297,197,000

TOTAL	$2,398,197,000	$121,094,000	$2,519,291,000

The Milton S. Hershey Medical Center	808,892,000	82,247,000	891,139,000

TOTAL UNIVERSITY	$3,207,089,000	$203,341,000	$3,410,430,000

TABLE 2 SUMMARY OF ESTIMATED 2007-08 STATE APPROPRIATION

Line Items:	2006-07 Appropriation	Change	2007-08 Estimated Appropriation*	Percent Change

Educational and General:
Educational and General	$258,332,000	5,167,000	$263,499,000	2.0%
Recruitment and Retention of Disadvantaged Students	454,000	0	454,000	0.0%

Sub-Total - Educ. & Gen.	258,786,000	5,167,000	263,953,000	2.0%

Agricultural Research & Cooperative Extension:
Agricultural Research	25,094,000	0	25,094,000	0.0%
Cooperative Extension	29,787,000	0	29,787,000	0.0%

Sub-Total - Ag Research & Cooperative Extension	54,881,000	0	54,881,000	0.0%

Pennsylvania College of Technology:
Operations	12,659,000	0	12,659,000	0.0%
Debt Services	1,389,000	0	1,389,000	0.0%

Sub-Total - Pennsylvania College of Technology	14,048,000	0	14,048,000	0.0%

TOTAL APPROPRIATION	$327,715,000	$5,167,000	$332,882,000	1.6%

*Based on Governor's Executive Budget Recommendation. Note: An estimated $14,495,000 of additional State and Federal Medical Assistance funds will be available to the Milton S. Hershey Medical Center for 2007-08. These funds will be provided through the Pennsylvania Department of Public Welfare.

EDUCATIONAL AND GENERAL BUDGET

EDUCATIONAL AND GENERAL EXPENSE CHANGES

Expense changes for the 2007-08 Educational and General portion of the University's general funds operating budget are described below and summarized in Table 3.

SALARY ADJUSTMENTS

Salary adjustments represent the largest component of the changes in the Educational and General operating budget. In 2000, the Board of Trustees adopted a multi-year plan to make Penn State's faculty salaries, which had been falling dramatically against other universities nationally, more competitive relative to our peer institutions in the Big Ten and Association of American Universities. This plan proved successful and showed steady improvement in our rankings through 2005-06. Limited funding for faculty and staff salary increases in the 2006-07 budget, however, resulted in some decline in our rankings. The salary increase plan for 2007-08 will again be modest and will likely result in further slippage.

Penn State is committed to awarding salary increases principally on the basis of merit as determined by annual evaluations. A salary increase pool of 2.25 percent will be used for merit-based increases and for market, equity and compression considerations for groups or individuals within the unit. For 2007-08, the budget includes $18,634,000 for salary increases and $3,982,000 for related benefits, for a total of $22,616,000.

PRESIDENT'S EXCELLENCE FUND

To provide additional support for salary concerns, the budget also includes $6,251,000 for the President's Excellence Fund. This amount represents 1.25 percent of the filled position salary base for faculty and staff, and will be used for special merit, market, equity, and compression considerations.

BENEFITS

For 2007-08, the cost of the University's benefits program will increase by $17,962,000. These changes include:

     1.  Health Insurances -- $14,274,000

     Rising health care insurance costs continue to create challenges for both employers and employees across the country. Health care costs have escalated dramatically over the last several years -- a trend which is expected to continue for the foreseeable future. The University is projecting an increase of 12.5 percent in 2007-08.

     Penn State has aggressively pursued efforts to mitigate its health care costs. Beginning January 1, 2008, the University will enter into a ten-year agreement with Highmark, Inc. As part of this new agreement, Highmark will be the exclusive administrator of all health plans offered to Penn State's employees, dependents, and retirees, allowing the University to offer a comprehensive benefits plan across its geographically diverse locations. This partnership with Highmark will provide a joint focus, involving the Hershey Medical Center, the College of Medicine, the College of Health and Human Development and the Mount Nittany Medical Center, on the development of wellness and disease management programs which will provide savings that will enable Penn State to limit annual health care cost increases in future years.

     2. Retirement and Social Security -- $3,688,000

     The budget plan for 2007-08 includes a projected increase of $2,198,000 for employer contributions to the TIAA/CREF retirement program, due to increased participation in this program. In addition, $1,490,000 is included for changes in the social security base.

     The budget does not include an increase in the employer contribution rate for the State Employees' Retirement System (SERS). The University has been advised by SERS that legislation has been adopted that will maintain the 2007-08 employer contributions for SERS at essentially current levels. Actuarial projections continue to show the rates increasing significantly by 2012. This is an area of concern for Penn State, and the University continues to monitor the situation closely.

PROPERTY AND LIABILITY INSURANCES

In line with national trends, the University is expecting additional increases in property and liability insurances. A total of $1,037,000 is included in the budget for these expected cost increases.

FACILITIES AND MAINTENANCE COST INCREASES

     1.  Maintenance and Operation of New Facilities – $1,002,000

     A total of $1,002,000 will be budgeted for the maintenance and operation of new or newly remodeled facilities scheduled to come on-line in 2007-08. This includes operating funds for the new University Health Services Building, building renovations and landscape improvements at University Park; and for the Academic Commons Building at Penn State Wilkes-Barre.

     2. Fuel and Utilities Cost Increases -- $4,160,000

     Global and national events have had a dramatic impact on the cost of fuel and utilities for the University. Funds in the amount of $4,160,000 are included in the 2007-08 budget for these increases at all campuses. Trends in the marketplace indicate that significant increases will continue for electricity, coal and natural gas in the future.

    3. Capital Improvement Program -- $3,650,000

     Insufficient or inadequate space continues to be a serious impediment to Penn State's academic programs. The University lags behind its peers in providing modern laboratory and classroom space for its students, faculty, and staff. Even with the new facilities constructed over the last several years, Penn State still has among the lowest overall space per full-time-equivalent (FTE) student of any public university in the Big Ten. While capital funds received from the Commonwealth are greatly appreciated, they will not be sufficient to meet the University's most critical needs. As a result, the University established an ongoing general funds budget to support the capital improvement program. These funds enable the University to incur debt for building renovations and construction. A total of $3,650,000 is included in the budget for 2007-08.

    4. Deferred Maintenance -- $2,522,000

     Penn State's physical plant is aging, and deferred maintenance continues to be a critical problem. During this decade, more square footage will reach the 35-year threshold, where major maintenance is required, than at any time in the University's history. Since 1996-97, the University has permanently budgeted approximately $20,500,000 for deferred maintenance. More needs to be done, however, to address the maintenance backlog. For 2007-08, additional support of $2,000,000 is included for deferred maintenance at University Park and the Commonwealth Campuses. An additional $522,000 also will be budgeted for deferred maintenance needs for the Dickinson School of Law.

STRATEGIC INITIATIVES

Funding in the amount of $3,537,000 is included in the 2007-08 budget for a select group of initiatives that are of strategic importance to the University. A portion of these funds will provide initial support for a new energy initiative through the Penn State Institutes of Energy and the Environment. Penn State has considerable strength in energy science and engineering through the Colleges of Agricultural Sciences, Engineering, Earth and Mineral Sciences, and the Eberly College of Science. The University is well positioned to become one of the top universities in the nation in the energy field. Funds will be allocated for the hiring of additional faculty positions in key focus areas related to the energy initiative. In addition, funds will support modest investments in the new forensic science program, the security and risk programs, journalism and teacher education. Enhancement funds also will be provided for high priority needs in a limited number of academic programs and for the Huck Institutes of the Life Sciences.

LIBRARIES AND INFORMATION TECHNOLOGY

A total of $1,410,000 is included in the budget for libraries and information technology. These funds will help the University keep pace with rapidly expanding and changing student computing, telecommunications, and information resource needs. This funding will be provided through a $10 per semester increase in the student information technology fee.

OTHER PROGRAM COMMITMENTS

A total of $4,661,000 is included for other program commitments. Of this amount, $889,000 will be allocated for new faculty positions and for instructional workload adjustments that reflect enrollment changes in the colleges. In addition, $2,551,000 will be provided for high priority academic needs and $1,221,000 will be allocated for other support services, including information technology services and the university-wide parking and transportation plan.

BUDGET REDUCTIONS AND NON-TUITION INCOME ENHANCEMENTS

For 2007-08, the budget includes internal expense reductions totaling ($10,141,000) from the academic and administrative units, representing a 1.0 percent across-the-board reduction in department operating funds, as well as central budget reductions. This is the sixteenth consecutive year that internal budget reductions have been used to balance the budget while keeping the tuition increase lower than would be necessary otherwise. An increase of $3,454,000 in non-tuition income, from increased facilities and administration cost recovery from sponsored research grants and contracts, and investment income is projected for 2007-08. In combination, internal budget reductions and non-tuition income enhancements total $13,595,000. This is equivalent to $220 per student, or 1.8 percent in avoided tuition increase for 2007-08.

STUDENT ACTIVITIES

An additional $1,300,000 will result from an $11 per semester increase in the student activities fee at University Park and a $10 increase at all other locations. At University Park, $1 of the increase reflects the final year of a five-year plan to help fund the construction of the new University Health Services Building. The remaining $10 per semester increase at University Park and the entire increase at the other campus locations will be used to support student activities and programs at the generating campuses.

NEED-BASED STUDENT AID

As the University implements tuition increases to provide necessary funds to meet its strategic goals, it is imperative that the amount of need-based student aid also be increased. This will help the University meet its continuing goal that any student from the Commonwealth will be able to attend Penn State through a combination of institutional, federal, state and private philanthropic support.

A total of $600,000 is included in the 2007-08 budget for need-based student aid. These funds will be used to leverage additional private donations for student support through the Trustee Scholarship Program. An additional $77,000 also will be available for the Dickinson School of Law.

GRANTS-IN-AID RELATED TO TUITION RATE INCREASES

A total of $4,315,000 is included in the 2007-08 budget for increased costs of grants-in-aid, which are related to the tuition rate increases, primarily for graduate assistants, fellowships, employees and dependents.




TABLE 3 EDUCATIONAL AND GENERAL OPERATING BUDGET 2007-08 EXPENSE CHANGES

Salary Adjustments
	1. Salary Increases	$18,634,000
	2. Benefits Related to Salary Increases	3,982,000
	Sub-Total - Salary Adjustments	22,616,000

President's Excellence Fund		6,251,000
Benefits
	1. Health Insurances	14,274,000
	2. Retirement & Social Security	3,688,000
	Sub-Total - Benefits	17,962,000

Property and Liability Insurances		1,037,000

Facilities and Maintenance
	1. Maintenance and Operation of New Facilities	1,002,000
	2. Fuel and Utilities	4,160,000
	3. Capital Improvement Program	3,650,000
	4. Deferred Maintenance	2,522,000
	Sub-Total - Facilities and Maintenance	11,334,000

Strategic Initiatives		3,537,000
Libraries and Information Technology		1,410,000
Other Program Commitments		4,661,000
Internal Budget Reductions		(10,141,000)
Student Activities		1,300,000
Need-Based Student Aid		677,000
Grants-In-Aid Related to Tuition Rate Increases		4,315,000

TOTAL EXPENSE CHANGES		$64,959,000

EDUCATIONAL AND GENERAL INCOME CHANGES

Income changes of $64,959,000 support the 2007-08 Educational and General budget. These changes are described below and summarized in Table 4.

STATE APPROPRIATION

The Educational and General appropriation line item for 2007-08, based on the Governor's budget recommendation, will increase by $5,167,000 or 2.0 percent, over the 2006-07 level. The Recruitment and Retention of Disadvantaged Students line item will remain unchanged over the 2006-07 level (see Table 2).

TUITION

     Tuition rate schedules for resident and non-resident students by student level and by campus are shown on Schedule 1 in Tab B of this document. For resident lower division students, the tuition increase for 2007-08 will be $319 per semester at University Park, $233 per semester at Erie, Harrisburg, Altoona and Berks, and $223 per semester at other Penn State campuses.

     Based on the recommendations of the Tuition Task Force adopted by the Board of Trustees in July 2002, tuition increases for non-resident students will be set at 1.5 times the increases for resident students, reflecting more appropriately the increases in the actual costs of instruction. For University Park students, where the current differential is 1.9 to 1 between non-resident and resident tuition, this will result in percentage increases that are less for non-resident students than those for resident students. For most campuses, where the current differential is 1.5 to 1, the percentage increases will be similar to those for resident students. For non-resident lower division students, the tuition increase for 2007-08 will be $479 per semester at University Park, $350 per semester at Erie, Harrisburg, Altoona and Berks, and $335 per semester at other Penn State campuses.

     Following approval by the Board of Trustees, specific tuition rates by campus, program, and student level will be available to students, parents, and the general public at the website: http://tuition.psu.edu.

     The tuition rate changes will generate an additional $41,263,000 in tuition income for 2007-08. Additional tuition income of $14,755,000 will also be budgeted as a result of enrollment growth experienced at University Park for the 2006-07 academic year, for a total of $56,018,000.

INFORMATION TECHNOLOGY FEE

A $10 increase in the current $202 per semester information technology fee will help support the rapidly expanding information and technology needs of Penn State students. This will generate $1,410,000 in additional income for 2007-08.

STUDENT ACTIVITIES FEE

An additional $1,300,000 will result from an $11 per semester increase in the student activities fee at University Park and a $10 increase at all other locations.

FACILITIES AND ADMINISTRATION COST RECOVERY

Over the past several years, the University has made a significant effort to better track and more fully account for costs in support of sponsored research activities. As a result of this initiative, additional income in the amount of $2,704,000 will be available from increased facilities and administration cost recovery from grants and contracts in 2007-08.

INVESTMENT INCOME

As a result of current market conditions, the University will have available an additional $750,000 of investment income for 2007-08.

TRANSFER TO THE COLLEGE OF MEDICINE

A total of $2,000,000 will be transferred from the Educational and General budget to support expenditures in the College of Medicine.



TABLE 4 EDUCATIONAL AND GENERAL OPERATING BUDGET 2007-08 INCOME CHANGES

State Appropriation*
	Educational and General	$5,167,000
	Recruitment and Retention of Disadvantaged Students	0

	Sub-Total - State Appropriation	$5,167,000

	Tuition	56,018,000
	Information Technology Fee	1,410,000
	Student Activities Fee	1,300,000
	Facilities and Administration Cost Recovery	2,704,000
	Investment Income	750,000
	Other Income	(390,000)
	Transfer to College of Medicine	(2,000,000)

	TOTAL INCOME CHANGES	$64,959,000

*Estimate based on Governor's Executive Budget Recommendation.


TABLE 5 AGRICULTURAL RESEARCH AND COOPERATIVE EXTENSION 2007-08 CHANGES

AGRICULTURAL RESEARCH

Expense:
	Salary Adjustments and Benefits Costs*	$1,044,000
	Program Changes	(1,044,000)

TOTAL EXPENSE CHANGES		0

Income:
	Appropriation Changes**	0

TOTAL INCOME CHANGES		$0

COOPERATIVE EXTENSION

Expense:

	Salary Adjustments and Benefits Costs*	$1,229,000
	Program Changes	(1,229,000)

TOTAL EXPENSE CHANGES		0

Income:
	Appropriation Changes**	0

TOTAL INCOME CHANGES		$0


Includes benefits cost increases for salaries paid on Agricultural Federal funds. *Estimate based on Governor's Budget Recommendation.

THE COLLEGE OF MEDICINE
AND
THE MILTON S. HERSHEY MEDICAL CENTER

COLLEGE OF MEDICINE

     General funds expense and income changes for the College of Medicine at the Hershey Medical Center for 2007-08 are shown on Table 6.

     Expenses will increase by a total of $6,467,000, including: $2,332,000 for instruction; $1,963,000 for additional program commitments, primarily to support the Cancer Institute; $937,000 for salary adjustments; $722,000 for benefits cost increases; and $513,000 for facilities and physical plant cost increases.

     On the income side, funds from the Educational and General budget in the amount of $2,000,000 will be transferred to support expenditures in the College of Medicine. Other income changes include: an increase of $1,323,000 in earnings of departments; an increase of $700,000 in academic support from the Milton S. Hershey Medical Center; and an increase of $500,000 in facilities and administration, investment and royalty income.

     The tuition rate increase for Doctor of Medicine students will be $1,846 per academic year for Pennsylvania residents and $1,710 for non-residents. The combined tuition increases for medical students, graduate students and continuing education students will result in an additional $1,944,000 in tuition income for 2007-08.

     The total 2007-08 operating budget for the College of Medicine is $162,088,000, as shown on Table 6A. The budget includes $86,268,000 for general funds, $72,000,000 for restricted funds and $3,820,000 for auxiliary enterprises.

THE MILTON S. HERSHEY MEDICAL CENTER

     The Milton S. Hershey Medical Center is a subsidiary corporation within Penn State that was formed to operate the clinical activities, both hospital and physician, that occur at the Hershey Medical Center.

     Budgeted expenses and income of $891,139,000 for 2007-08, as shown on Table 6A, were approved by the Board of Directors of the Milton S. Hershey Medical Center on June 21, 2007.

     When combined with the College of Medicine, the budget for the entire medical center operation for 2007-08 is $1,053,227,000.

TABLE 6 THE COLLEGE OF MEDICINE 2007-08 GENERAL FUNDS BUDGET CHANGES

Expense:
	Instruction	$2,332,000
	Program Needs	1,963,000
	Salary Adjustments	937,000
	Benefits	722,000
	Facilities and Physical Plant	513,000

TOTAL EXPENSE CHANGES		$6,467,000


Income:
	Tuition and Fees	$1,944,00
	Earnings of Departments	1,323,000
	Academic Support from The M. S. Hershey Medical Center	700,000
	Facilities & Administration, Investment & Royalty Income	500,000
	Transfer from Educational and General	2,000,000

TOTAL - INCOME CHANGES		$6,467,000

TABLE 6A THE COLLEGE OF MEDICINE AND THE MILTON S. HERSHEY MEDICAL CENTER 2007-08 TOTAL OPERATING BUDGET

	2006-07 Adjusted Budget	Changes	2007-08 Budget

College of Medicine (COM):
General Funds	$79,801,000	$6,467,000	$86,268,000
Restricted Funds	67,000,000	5,000,000	72,000,000
Auxiliary Enterprises	3,655,000	165,000	3,820,000

Sub-Total - COM	150,456,000	11,632,000	162,088,000

Milton S. Hershey Medical Center	808,892,000	82,247,000	891,139,000


TOTAL	$959,348,000	$93,879,000	$1,053,227,000

THE PENNSYLVANIA COLLEGE OF TECHNOLOGY

EXPENSE AND INCOME CHANGES

     The 2007-08 budget for the Pennsylvania College of Technology was approved by its Board of Trustees on June 21, 2007. Expense and income changes included in that budget are described below and shown in Tables 7 and 7A.

     General funds expenses for 2007-08 will increase by $4,621,000. Included are $2,992,000 for salary adjustments, $595,000 for employee benefits cost increases, and $1,257,000 for other expense increases. Expenses related to Penn College plant funds will decrease by ($223,000).

     The 2007-08 general funds budget for Penn College includes income changes of $4,621,000. The state appropriation for operations will remain unchanged over the 2006-07 level, based on the amount included in the Governor's proposed budget. Tuition and fees will increase by $315 per semester (based on a 15-credit course schedule). A total of $4,503,000 in new tuition and fees income will be available from rate increases and from projected enrollment growth. Other income will increase by $341,000. The income to support plant funds will decrease by ($223,000). The state appropriation for debt service remains unchanged over the 2006-07 level, based on the amount included in the Governor's proposed budget.

     The total 2007-08 operating budget for the Pennsylvania College of Technology is $134,047,000, as shown on Table 7A. This includes the general funds budget of $87,804,000, restricted funds of $26,168,000, and $20,075,000 for auxiliary enterprises.


TABLE 7 THE PENNSYLVANIA COLLEGE OF TECHNOLOGY 2007-08 GENERAL FUNDS BUDGET CHANGES

Expense:
	Operations:
	Salary Adjustments	$2,992,000
	Employee Benefits	595,000
	Other Expense	1,257,000

	Sub-Total - Operations	4,844,000

	Plant Funds:
	Debt Service	(296,000)
	Renewal and Replacement Expenses	73,000

	Sub-Total - Plant Funds	(223,000)

TOTAL - EXPENSE CHANGES		$4,621,000

Income:
	Operations:
	State Appropriation*	$0
	Tuition and Fees	4,503,000
	Other	341,000

	Sub-Total - Operations	4,844,000

	Plant Funds:
	Income to Cover Debt Service:
	State Appropriation*	0
	Other	(296,000)

	Sub-Total - Income to Cover Debt Service	(296,000)

	Renewal & Replacement:

	Other	73,000

	Sub-Total Renewal & Replacement	73,000

	Sub-Total Plant Funds	(223,000)

TOTAL - INCOME CHANGES		$4,621,000

*Estimate based on Governor's Executive Budget Recommendation.

SCHEDULES INCLUDED IN THE RESOLUTIONS FOR APPROVAL
OF THE 2007-08 OPERATING BUDGET, TAB A

     Schedule I provides a summary of the proposed total University budget for 2007-08. Amounts shown for restricted funds are estimates, which are included to provide a complete picture of the total University budget. Actual restricted funds amounts will depend on continuing receipt of grants and contracts, and may be either higher or lower than estimated.

     Total University general funds expenditures, including the College of Medicine, and the Pennsylvania College of Technology are shown on Schedule II, and Schedule III shows corresponding estimated general funds income.

     Schedule IV shows the total proposed expenditures for the College of Medicine, and Schedule V presents estimated College of Medicine income.

     Footnotes to Schedules I through V in Tab A provide additional explanation of the proposed expense and income changes.

Return to Table of Contents

Academic Salary Information



TABLE 7A THE PENNSYLVANIA COLLEGE OF TECHNOLOGY 2007-08 TOTAL OPERATING BUDGET


	2006-07 Adjusted Budget	Changes	2007-08 Budget

General Funds	$83,183,000	$4,621,000	$87,804,000

Restricted Funds	26,684,000	(516,000)	26,168,000

Auxiliary Enterprises	17,709,000	2,366,000	20,075,000

TOTAL	$127,576,000	$6,471,000	$134,047,000