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| 2005-06 BUDGET PRESENTATION | ||
 he Pennsylvania State University does more to power
Pennsylvania’s economy than any other single entity within the
Commonwealth. According to a report recently completed by the firm of Tripp
Umbach, Penn State is the leading driver of economic impact in this state,
generating more than $6.1 billion in direct and indirect economic impact
statewide. |
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| For every dollar of appropriation that the Commonwealth provided to Penn State last year, the University returned $19.42 in total economic impact and $1.56 in tax revenue to the Commonwealth. The allocation of state funds by the Governor and legislature to Penn State isn’t just an appropriation of state money, but quite literally is the very best investment of funds that the Commonwealth can make in the future of our state. | ||
| The 2005-06 appropriation request reflects the University’s best efforts to keep costs down while seeking a restoration of Commonwealth funds to allow Penn State to advance its very important | ||
On February 22, 1855, Pennsylvania Governor James Pollock signed the charter that created what is today The Pennsylvania State University. Initially a small college dedicated to the study of scientific agriculture, Penn State was designated the Commonwealth’s sole land-grant institution in 1863. |
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statewide mission of teaching,
research and service. The budget request asks for a restoration of the University’s funding level to the initial appropriation |
| received four years ago in 2001-02, which would be an increase of $17.6 million or 5.6 percent. If the Commonwealth were able to provide this restoration, Penn State would be able to hold the tuition rate increase for Pennsylvania resident students to 5.8 percent. | ||
| Penn State does not seek these funds simply to replace the budget cuts that have been made over the last several years. Rather, they will be used to help support basic operating cost increases in major areas such as benefits and insurances, facilities, faculty and staff salary adjustments, and strategic initiatives and other program needs that will allow the University to better serve its students and the Commonwealth. | ||
| There is only one major investment priority in
the appropriation request, and that is for additional funding for the College
of Medicine. The average appropriation for medical schools nationally is
approximately $50 million. Last year Penn State received only $4.8 million for our College of Medicine — the smallest |
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| In 1955, Professor Erwin Mueller became the first person to “see” an atom using the electron microscope he invented. Today, Penn State’s research expenditures top $606 million. |   |
appropriation of any medical school in the country and less than 10% of the national average. |
| Because of all the changes that have occurred in the health care industry, we simply can no longer support the college from clinical revenues at the medical center. There must be an increase in state support. It is absolutely critical to the future of the medical school, and the University asks that serious attention be given to this vital need. | ||
| Incorporated within Penn State’s budget request is a continuation of our on-going cost cutting and reallocations. Since 1992-93, the University has recycled over $127 million from departmental budgets. | ||
| In September 2002, the University established a Cost Savings Task Force to explore opportunities for additional cost savings that would not adversely affect the academic quality of the institution. In total for the 2003-04 and 2004-05 budget years, the Task Force identified $20,961,000 in annual savings and non-tuition income enhancements. This is equivalent to $327 per student per year, or 3.8 percent in avoided tuition increases over the two-year period. | ||
| For 2005-06, the University has established targets of $2,433,000 in cost savings and $3,500,000 in non-tuition income beyond the on-going internal budget reduction and reallocation program. These represent serious efforts to keep costs down while still serving the important needs of our 82,000 students. | ||
| The Pennsylvania State University is very proud of the impact that our 24 campuses have on Pennsylvania, and it is our hope that the legislature will support our budget request, thus ensuring that Penn State can continue to create jobs, make important new discoveries, and open the doors of education to citizens in every corner of this great Commonwealth. | ||
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Although much in evidence in this 1930 botany class, women students were still outnumbered by men by about 5 to 1. Today, 46 percent of Penn State’s students are women. | |
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