For 1999-2000, Penn State is requesting an increase in state funds of $11,898,000, or 4.0 percent, to cover basic operating cost increases. This includes provisions for competitive salary adjustments for faculty and staff members, employee benefits cost increases, funds for the maintenance and operation of new facilities, and critical academic and support program priorities. Details of this request are shown in Tables 1 and 2, and in Appendix A.

In addition, the University is seeking $10,039,000 to support three high priority program initiatives: Information Sciences and Technology; Workforce Development; and Agricultural Research and Cooperative Extension. These initiatives are described below:

INFORMATION SCIENCES AND TECHNOLOGY

Information Sciences and Technology (IST) encompasses a wide spectrum of knowledge and skills ranging from the design of hardware and software to considerations of the impact of information technology on society. Across the nation and in the Commonwealth of Pennsylvania, there is a severe shortage of information sciences and technology workers to meet the needs of the information age. Recent surveys indicate that:

• The demand for computer programmers, systems analysts, and computer scientists and engineers is mushrooming;
• There were 190,000 unfilled information technology jobs nationally in 1997;
• 82 percent of companies are seeking more skilled workers;
• 50 percent of information technology companies say the worker shortage is the most significant barrier to growth; and
• More than one million computer scientists, systems designers, and programmers will be needed by the year 2005.

Pennsylvania is Poised for Leadership in IST

Pennsylvania is a major location for software engineering in the United States. With essential workforce development, Pennsylvania could be home to a significantly greater number of information technology companies.

Penn State currently offers more than 40 programs educating associate, baccalaureate, and graduate students in studies related to information technology. Together, these programs produce more than 1,000 graduates each year. Yet, the numbers of these graduates are insufficient to help meet the growing need for IST professionals in Pennsylvania.

Penn State Plans to Launch a New School of IST

To help meet the enormous needs of today's workforce, and in concert with priorities expressed by Governor Ridge, Penn State's Board of Trustees approved the establishment of a new School of Information Sciences and Technology (IST) effective fall, 1999. President Spanier has told Penn State Trustees, "We share the Governor's vision that Pennsylvania must be a major presence in the information technology revolution. It is a revolution that is moving forward at enormous speed and we must move rapidly to position the Commonwealth and our University in this area. Ours will be a statewide effort that Penn State is uniquely able to lead because of our broad presence in Pennsylvania."

The mission of the school is to facilitate the development of IST programs at all locations and educational levels in the University through effective teaching, research, and outreach. It also includes partnerships with other academic units within the University, with business and government, and with other colleges and universities in the Commonwealth. The partnerships with other educational institutions would include possible faculty exchanges, student exchanges, faculty retraining and retooling, articulation agreements between Commonwealth institutions, consultation on the development of new IST programs, and a proposed Governor's School of Information Sciences and Technology at Penn State.

The School of IST will incorporate associate and baccalaureate degree programs; master's and Ph.D. programs; minors; outreach programs, including professional degrees and certificates; organized research programs; and opportunities for greater information literacy among Penn State students. The school will promote an understanding of advanced computing, communications, and information systems in industry, government, and society.

Current plans call for a target of 800 baccalaureate students and 200 graduate students in the School of IST at the University Park campus within 5 years. Up to an additional 1,000 students will be served by associate, baccalaureate, and graduate IST programs at other Penn State campus locations. The school will need a minimum of 30 full-time faculty positions at University Park and 25 at other campus locations. In addition, there will be 15 faculty members with joint appointments in IST and other academic disciplines.

Special State Appropriation Requested for the School of IST

Financial projections indicate that operating funds of $9.5 million will be required to ensure the success of the new school. Because a share of the IST program enrollments are expected to come from net new enrollments at Penn State, increased tuition income will provide about half of the expenses for the new school. Penn State is requesting a state appropriation of $4.5 million for the School of Information Sciences and Technology to provide the balance of the necessary funding.

Industry participation and other private philanthropy are essential to the successful launch of the School of IST. Early indications are that many companies have an interest in partnering with the school. Funds from development activities will support student scholarships, fellowships, and internships; faculty chairs and professorships; and facilities and equipment.

WORKFORCE DEVELOPMENT

Workforce development focuses on preparation, recruitment, retention, and performance of an organization's human resources. It can include a variety of academic programs such as certificates; associate, baccalaureate, master's and doctoral degree programs; conferences, short courses, and non-credit programs; and customized services for career development and change.

The challenge for Pennsylvania and the nation is to deploy a workforce that is able to sustain an economically vibrant future. The gap between education needed on the job and a high school education is widening. The knowledge base is estimated to double every seven years.

Today's workplace requires employees who are skilled at problem solving, critical thinking, teamwork, communications, and the ability to learn continuously. Colleges and universities are uniquely positioned to provide lifelong learning and workforce development opportunities.

Penn State's Unique Involvement in Workforce Development

Partnerships are essential to the identification of needs and delivery of programs and services related to workforce development. Penn State has developed close working relationships with businesses, industries, organizations, constituent groups, and state and local governments in order to be able to respond effectively to their needs. Penn State currently is engaged in a wide variety of activities that contribute to workforce development in the Commonwealth. Consider the following examples:

• The University enrolls nearly 7,000 students in occupational and technical programs throughout the state. About half of these students are enrolled in 68 occupationally specific programs at the Pennsylvania College of Technology (3,539), in fields such as electronics, aviation, construction, manufacturing engineering, dental hygiene, nursing, and computer applications. The other half (3,443) are at Penn State's other campuses which offer 23 associate degree programs. Prime examples are two-year engineering technology programs, including associate degrees in architectural, biomedical, electrical, materials, mechanical, plastics, and telecommunications engineering technology.

• Building on Penn State's extensive experience in continuing and distance education, the University's new World Campus capitalizes on the latest advancements in information technology to serve learners anywhere, anytime. Within five years, we plan to have on-line more than 300 courses constituting 30 of Penn State's best degree, certificate, and continuing professional education programs. This will provide great flexibility in meeting targeted learning needs within an organization or industry.

• Penn State is partnering with the Pennsylvania Chamber of Business and Industry to jointly identify, design, and deliver programs to meet the needs of the state's business communities. The goals of the partnership include working collaboratively to develop local and statewide information sharing and resource networks for Penn State, the Pennsylvania Chamber of Business and Industry, and local chamber members; developing new needs- based program opportunities each year; sharing responsibilities for program marketing, development and delivery; and supporting the Commonwealth's goals for economic and community development. Among the strengths Penn State brings to this partnership are extensive experience in leadership and management development and executive education programs, expertise in business and technology, and educational delivery systems including public television and the World Campus.

• The University's Management Development Program offers workforce development programs across the Commonwealth through Penn State's campus network. In addition, on-site, customized programs were offered to more than 200 organizations last year.

• Penn State, the Commonwealth, and the semiconductor industry have jointly developed a unique Semiconductor Manufacturing Technology (SMT) degree to help retain and grow the semiconductor industry in Pennsylvania. The two-year SMT associate degree program is being offered in cooperation with the Pennsylvania College of Technology. The SMT program is designed to address the technician shortfall in the rapidly growing semiconductor and semiconductor supply industry in Pennsylvania. The $296.4-million-a-year semiconductor industry employs nearly 6,500 people in 61 companies in Pennsylvania. The industry is in need of more highly trained people, with estimates of more than 40,000 additional semiconductor manufacturing technologists required nationwide by 2001.

Penn State's Request for Special Funding for Workforce Development

Communities throughout the state are seeking additional workforce development education through Penn State's campuses. Some are programs tailored to the unique needs of a specific region, such as the plastics industry in Erie. Other requests include making Penn College programs available more broadly through local Penn State campuses.

The University is requesting a special appropriation of $3,000,000 for 1999-2000 to expand Penn State's workforce development efforts. This includes funds to support Penn College programs at Williamsport, to deploy certain Penn College programs to other Penn State locations, and to expand existing workforce-related programs at Penn State campuses. The funds will also be used to support increased outreach activities and to enhance the University's technology transfer efforts.

AGRICULTURAL RESEARCH AND COOPERATIVE EXTENSION

Penn State, as one of the nation's premier land-grant universities, has always provided leadership in extending knowledge grounded in research to address the needs of Pennsylvania's citizens and the issues faced by the Commonwealth. Recently, this commitment has been renewed by a plan to strengthen Outreach and Cooperative Extension using the expertise of all colleges and administrative units more effectively in support of agriculture and our urban and rural constituents. This reorganization brings the other colleges of the University into partnership with and complements the historic leadership of the College of Agricultural Sciences in this area. These changes were developed through a comprehensive needs analysis with input from every county and from key stakeholders, including the Pennsylvania Agricultural Council, the Pennsylvania Council for Cooperative Extension, and County Commissioners.

Seven priority areas have been identified as key to the vitality of the agricultural economy of Pennsylvania. Enhancement of research and extension capacity in these high priority areas will have an added benefit of bringing new ideas and approaches into the classroom allowing us to better prepare tomorrow's workforce. The seven areas are:

• Dairy Profitability
• Water Quality
• Nutrient Management
• Food Safety and Nutrition
• Integrated Pest Management
• Children, Youth and Families
• Geographic Information Systems (GIS) and Information Technology

In addition, the College of Agricultural Sciences, continues to be commited to preparing tomorrow's leaders to address the challenges Pennsylvania will face in the years ahead. Penn State's 4-H program is a very important component of this leadership development. The 4-H program incorporates the range of concerns addressed by the College of Agricultural Sciences, including the seven priorities noted above.

Penn State's Request for Special Funding for Agricultural Research and Cooperative Extension

Penn State must rely on appropriations from the Commonwealth to support its programs in Agricultural Research and Cooperative Extension. During the period between 1990 and 1996, the University received virtually no increases in appropriation support for these important programs. The result was a significant loss in the programs, personnel, and purchasing power of the Agricultural Research and Cooperative Extension budgets, including the reduction of 163 faculty and staff positions.

The University and the agricultural community are pleased that the Commonwealth recognized this problem in 1996, and appropriated additional funds to help restore a portion of the lost purchasing power. Since that time, however, appropriations have not helped to close the gap further. When adjusted for inflation, the Agricultural Research appropriation is still 15.5 percent below the 1989-90 level, while Cooperative Extension is 10.6 percent lower.

A continuing investment in Agricultural Research and Cooperative Extension is needed to counter the losses experienced in previous years and to help stimulate the vital agribusiness economy of the Commonwealth. Penn State is requesting a special appropriation of $2,534,000 to provide new support for areas of high priority for Pennsylvania's agricultural sector.

Collectively, these funds will assure that the University and the College of Agricultural Sciences will be able to meet its mandate of helping Pennsylvania provide a safe, abundant, and affordable food supply for its citizens; maintaining harmony between agriculture, natural resources and the environment; discovering and transfering new knowledge and technology to help maintain profitability; and preparing graduates who are ready to meet tomorrow's challenges. The funds will also have a substantial leveraging effect on the University's ability to continue to attract federal gift and grant funds to support Pennsylvania's priority programs.