POSITIONING PENN STATE FOR THE FUTURE

A Pennsylvania Partnership

Through the integrated missions of teaching, research, and service carried out across twenty-four campus locations, Penn State plays an important role in promoting human, economic, and cultural development for Pennsylvania. We are the institution of choice for the plurality of the Commonwealth's most talented students seeking admission to college and a major contributor to workforce development, enrolling more students in professional, occupational, and technical programs than any other institution in the state. Penn State is the principal engine of research and technology transfer in Pennsylvania and the major source of university outreach. One in every two households in Pennsylvania has someone participating in Penn State programs.

The quality and synergy of Penn State's teaching, research, and service activities are widely recognized. Penn State is one of the most popular universities in America. More than 50,000 applications for undergraduate admission were received for 1998-99, a 7 percent increase over the previous year. Enrollment is at an all-time high of more than 80,000 undergraduate and graduate students University-wide. Minority enrollment is up more than 7 percent, at a record high of nearly 8,300 students.

Our University is known as an innovator in teaching, using technology and new models of active and collaborative learning to prepare students in a comprehensive array of fields and degree programs for success in today's world. The placement of Penn State graduates is excellent, with 98 percent employed or furthering their education within three months of graduation.

Penn State's research expenditures totaled $374 million in 1998, up from $353 million the previous year. The University ranks among the top universities in the nation in total research funding and second among all universities in industry-sponsored research. New interdisciplinary initiatives in the life sciences, materials science, environmental studies, information sciences and technology, and children, youth, and families will sharpen the focus of Penn State research on important societal needs and strengthn our teaching and outreach.

Penn State has the largest unified outreach effort in American higher education. More than 1,500 faculty, 800 staff, and 50,000 outreach volunteers are involved in delivering programs and services in all 67 of Pennsylvania's counties. The Penn State World Campus, a virtual university, was launched last year to capitalize on the quality and flexibility afforded by the new digital technologies to meet the growing demand for distance education programs.

Above and beyond these activities, Penn State contributes to the Commonwealth in dozens of ways. Many state agencies call on the expertise of University faculty and staff to solve problems, shape policy, provide services, deliver training, and give leadership on boards and commissions. Businesses and communities also partner with Penn State to address their needs and concerns. Penn State students contribute as well through their practicum and community activities.

We could not succeed in all of these efforts without the partnership of our Board of Trustees; our faculty and students; Pennsylvania's legislature, Governor, and citizens; and the corporate community. A combination of tuition, appropriations, research funding, and philanthropy is necessary to provide the resources that enable Penn State's learning community to accomplish so much. Recognizing this need for a multifaceted base of support, the University will launch a major capital campaign this spring to increase the endowment, with a special emphasis on increasing student scholarship and fellowship funds and endowed positions that attract and retain the very best faculty.

We also seek further investment by the people of the Commonwealth through their elected officials to sustain and enhance our partnership with Pennsylvania. We are requesting that Penn State's 1999-2000 state appropriation provide special program funding for three initiatives in support of current Commonwealth priorities: $4.5 million to help launch our new School of Information Sciences and Technology; $3 million to expand workforce development programs; and $2.5 million for Agricultural Research and Cooperative Extension to address needs within Pennsylvania's agribusiness community. We also are requesting a basic operating cost increase of 4 percent to maintain the quality and level of programs and services the University provides for the Commonwealth.

Penn State takes very seriously the good stewardship of resources entrusted to us. To give the greatest return to all who invest in our University, we are committed to an ongoing program of strategic planning that emphasizes cost containment and continuous quality improvement, budget recycling to address changing priorities, and the critical assessment of strengths, needs, and special opportunities. With the continued support of the Commonwealth and our efficiency and commitment to leadership, Penn State will be strongly positioned to support Pennsylvania's future.

Graham Spanier

HIGHLIGHTS OF PENN STATE'S 1999-2000

Internal budget reductions and reallocations -- this will be the eighth consecutive year for internal budget reductions. Since 1992-93, Penn State has reallocated over $75 million.

Salary adjustments and benefits cost increases -- Penn State's salaries have slipped in comparison to peer institutions. The proposed increase will maintain the current ranking but will not make up for lost ground.

Academic program priorities:

• Information Sciences and Technology
• Workforce Development
• Agricultural Research and Cooperative Extension
• Life Sciences
• Children, Youth and Families
• Materials Sciences
• Environmental Studies

Maintenance and operation of new facilities scheduled to come on line during 1999-2000, plus modest fuel and utilities increases.

Deferred maintenance funds to help reduce the major maintenance backlog.

Capital improvement program -- first of a 5-year plan to provide funding for critical capital construction and renovation projects over and above what might be received from the Commonwealth.

Tuition rate increase, including a basic increase and a small additional amount to support the capital improvement program.

HIGHLIGHTS OF PENN STATE'S 1999-2000

APPROPRIATION REQUEST

Basic Operating Cost Increases of $11,898,000, or 4.0 percent.

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.

Special Program Funding Requests:

• Information Sciences and Technology (IST) -- $4,505,000. To help the growing need for IST professionals in Pennsylvania, Penn State has established a School of Information Sciences and Technology. The University will match funds from the Commonwealth with an investment of $5,000,000 to support the new school.

• Workforce Development -- $3,000,000. Communities throughout the state are seeking expanded workforce development education through Penn State's campuses. This includes funds to support Penn College programs at Williamsport, to deploy Penn College programs to other Penn State locations, and to expand workforce related programs at Penn State campuses.

• Agricultural Research and Cooperative Extension -- $2,534,000. This is the first year of a 2-year plan to enhance Penn State's agricultural research and cooperative extension activities in seven high priority areas that are key to the vitality of Pennsylvania's agricultural economy.

Total appropriation requested is $321,019,000, or an increase of $21,875,000.