Budget Cycle Process

The University’s budget development process is under the direction of the Budget Task Force. It takes place over a year-long period beginning in May and culminates in July of the following year with approval of the final plan by the Board of Trustees.

The column on the left of the slide summarizes the Commonwealth’s budget cycle.

The University’s budget plan and appropriation request is submitted to the Pennsylvania Department of Education in September following approval by the Board.
The Governor’s budget recommendation is presented in early February and legislative appropriation hearings are held in the spring.
The University’s appropriation is generally approved in late June or early July.

The column in the center of the slide summarizes Penn State’s budget cycle.

Over the course of the year, budget alternatives are considered and a number of scenarios are developed.
Salaries are benchmarked with peers.
Program priorities and commitments are identified.
Projections for mandatory cost increases are refined.
On-going recycling and cost savings efforts are considered.
Developments in Harrisburg are factored into the planning.
The budget is finalized as the appropriation becomes available.
The budget is presented to the Board for approval in July.

The column on the right of the slide summarizes the University’s planning cycle as it relates to the strategic planning process.

Unit strategic plans will be submitted at the end of June.
The unit plans will be reviewed at the University level.
Program priorities will be incorporated into the budget development process.