Penn State seeking modest increase on state appropriation — and other board of trustees highlights
With the ongoing COVID-19 pandemic, Penn State is hoping the commonwealth agrees to a “lower-percentage increase” in funding next year.
The board of trustees Committee on Finance, Business and Capital Planning recommended Thursday morning that the university submit an appropriations request to the state for a 4.2% increase in the 2021-22 fiscal year. That amounts to $353.1 million, a $14.2 million increase compared to the current fiscal year.
The full board will formally vote Friday on whether to submit the request.
Typically, the university asks for about a 6% annual increase but received no increase for the current fiscal year due to the COVID-19 pandemic. “Given the state’s financial conditions, we felt it was appropriate to request a lower-percentage increase” for the next fiscal year, said Penn State budget officer Mary Lou Ortiz.
According to the board, the additional $14.2 million in requested funds would be used for a 3% increase for general support for Penn State Health and the College of Medicine and for Penn College, a 6% increase for ag research and extensions — “They have been asked to expand many of the services on behalf of the state,” Ortiz added — and then a $2.35 million appropriation in support of the Invent Penn State initiative, which seeks to spur economic development and job creation.
This is just the first step of the appropriations process. The operating budget, with the final state appropriation, won’t be finalized until July.
New Engineering building
West 2, a new College of Engineering building, took another important step toward creation Thursday.
The Committee on Finance, Business and Capital Planning recommended approving the final design plans for the 103,600-square-foot building — about 15% larger than the Lasch Football Building — and authorizing $88 million in expenditures. Construction is expected to begin next month and should be finished in about two years.
The building will contain a multipurpose high-bay space, research labs, research cores, teaching and studio spaces, administration and faculty spaces, and student spaces. It will house the School of Engineering, Design and Technology programs, the Learning Factory and the Factory for Advanced Manufacturing Education Lab.
It will be built next to the West Campus Parking Deck.
As part of all the construction around the College of Engineering, Hammond Building will be demolished — which couldn’t come soon enough for some alumni.
“Hammond was stillborn in the ’60s and rumored for demolition since then,” trustee Lynn Dietrich said. “It’s time to put a stake in that thing. I can’t say more about it.”
According to the board, 74% of West 2 was funded with state funds, and West 2 came in under budget by 6%.
The construction is part of a $1 billion College of Engineering master plan that extends through 2028. Phase 1, which includes both West 1 and West 2, boasts a $370 million budget and will focus on improving the area around the College of Engineering near Atherton Street.
No rent increase for graduate apartments
Next year’s Penn State graduate students just got a little bit of good news.
The university’s graduate apartment leases — at White Course Apartments — will see no increase in rental rates for the next school year, under a recommended proposal from the Committee on Finance, Business and Capital Planning. The recommendation is expected to be formally approved by the full board Friday.
Under the proposal, monthly rent for a one-bedroom apartment would remain $1,168; a two-bedroom apartment remains $1,321; a three-bedroom is still $1,459 and a three-bedroom with 1.5 baths remains $1,474. Four-bedroom quad apartments, which accommodate four people, would still cost $938 per person.
The rates apply to all 154 apartments reserved for single graduate students and graduate students with families at White Course Apartments.
“We are proud to advance a plan that includes no rate increase for our graduate students for the next academic year,” John Papazoglou, associate vice president for Auxiliary and Business Services at Penn State, said in a written statement. “We know that circumstances are challenging and finances are tight for many right now, and we have worked hard to hold the line on rates for graduate students during these trying times.”
Chiller plant set to expand
Penn State could soon add a 3,000-ton chiller and other equipment to expand its West Campus Chiller Plant, which is seeing more and more buildings added to its centralized cooling system.
The cost is $9.5 million and also includes four new cooling towers, a new chilled water pump, a new condenser water pump and other supporting equipment. It will be voted on Friday by the full board.
Bill Sitzabee, Office of Physical Plant vice president and chief facilities officer, said it would be 40% more efficient to operate and maintain a centralized chiller as opposed to operating independent chillers at each building. He also said there would be increased value from such a move, as renovated South and East residence halls now charge $400 more per room for renovated and air-conditioned spaces.
“A central chilled water system is a key component to the university’s sustainability goals,” Sitzabee said. “The realized efficiency saves a significant amount of electrical energy and the corresponding greenhouse gas emissions. Centralized systems are also much less likely to have refrigerant leaks and will minimize our environmental impact.”
