Penn State General Support Funding Holds Steady for Third Straight Year
UNIVERSITY PARK, Pa. — Penn State’s General Support Appropriations will remain stable for the third straight year as the Pennsylvania General Assembly approved the University’s Non-Preferred Appropriations Bill on July 7 as part of the budget. Commonwealth 2022-2023. The $42.7 billion budget package, which was signed into law by Governor Tom Wolf, also includes a 5% funding increase for Penn State agricultural research and extension and $2.35 million in new funding. for Invent Penn State.
“The funding we receive from the Commonwealth plays a vital role in helping to maintain a world-class education in the state of Pennsylvania at an affordable price for Pennsylvania students and families. This year, there are positives like increased funding for the College of Agricultural Sciences which will benefit vital research and extension work that impacts the state’s agricultural industry and rural communities, as well as new support for Invent Penn State that will enhance the work Penn State is already doing to spur economic development, revitalization, and entrepreneurial activity throughout Pennsylvania,” said Penn State President Neeli Bendapudi. “However, it is important to focus on a broader context. Inflationary pressures, revenue losses due to the pandemic, changing demographics and other cost-inducing factors, coupled with successive years of fixed funding, pose significant challenges for the University and will require us to take a deep look at our budget and our expenditures over the coming year.
Penn State’s general support appropriations have not increased since a 2% increase for the 2019-20 fiscal year. This funding is applied entirely to Penn State’s education budget and enables the University to provide an in-state tuition rate that benefits approximately 45,000 undergraduate students residing in Pennsylvania each year.
“We are disappointed that the General Assembly has chosen not to increase Penn State’s general support appropriations, as requested by the University and proposed by Governor Wolf.,said Zack Moore, Penn State vice president for government and community relations. “Pennsylvania students and their families are the direct beneficiaries of this funding, saving them each thousands of dollars off the total cost of a degree. After the university’s funding freeze for the past two years, and amid near-unprecedented inflation and state budget surpluses, Penn State and its students — especially low-income students and medium – rely on state support to meet rising costs. and to help mitigate impacts on tuition fees.
Still, the state budget contained some bright spots for Penn State. The new $2.35 million in funding for the Invent Penn State Initiative marks the first time the seven-year-old program focused on economic development and entrepreneurship has been funded by the Commonwealth. Additionally, up to this year’s 5% increase, Agricultural Research and Extension, which conducts research and provides science-based information and programs that benefit the agricultural industry and citizens of the 67 counties in Pennsylvania, had not received a funding increase since 2019.
Penn State’s state funding for 2022-23 includes:
- $242.1 million for the University’s General Support vote, representing level funding from 2021-22 and 2020-21. This funding, which currently equates to approximately $5,400 per Pennsylvania student, is the lowest per-student credit of any public university in Pennsylvania and well below the national average. However, Penn State more than doubles the state’s investment per student, saving each Pennsylvania resident undergraduate student an average of $13,000 per year in tuition.
- $57.7 million for Penn State Agricultural Research and Extension, an increase of 5%, or $2.7 million, from 2021-22. Agricultural research and extension programs are not supplemented by tuition, so funding increases are needed to keep pace with inflation and to take advantage of matching federal and county funding. Increased state support is critical to Penn State’s efforts to support agricultural education, serve rural communities, and provide research-based solutions to challenges facing Pennsylvania’s agricultural industry.
- $26.7 million for the Pennsylvania College of Technology, representing 2021-22 and 2020-21 level funding. Penn College is a special mission affiliate of Penn State that focuses on teaching applied technology.
- $2.35 million in new funding for Invent Penn State. This funding will help the University strengthen and grow the LaunchBox and Innovation Hub network, expand established entrepreneurship education programs with additional staff and support services, and increase access to the University’s technical assistance program. Pennsylvania to support more businesses.
- Penn State Health and the College of Medicine received level funding to provide access to high-quality medical care through medical assistance funding, with a portion of the funds to support preparing medical students for careers in primary care and rural medicine. In addition, state funding to improve access to clinical care programs and resources increased by 6%.
With public funding from the University, Penn State’s operating budget and tuition and fee schedules for fiscal year 2022-23 will be finalized and presented to the Board of Trustees.