Gov. Shapiro proposes funding increase for Penn State, far short of PSU’s historic request
Pennsylvania Gov. Josh Shapiro on Tuesday proposed an increase of $17.2 million, or 7.1%, toward Penn State’s general support appropriation — funds that impact in-state tuition and cover core teaching costs — but that proposal still falls far short of the university’s historic request.
Facing significant budget issues, Penn State in the fall requested an increase in general support of $115.2 million, or 47.6%, to a total of $357.3 million. Officials justified that ask by pointing out Penn State currently receives between $2,600 and $3,400 less per student compared to other public/state-related universities in the commonwealth, such as Temple and Pitt.
Penn State’s historic request was meant to match Temple’s per-student funding, which only ranks ahead of PSU. Still, Penn State President Neeli Bendapudi expressed gratitude Tuesday for the proposed increase.
“We are very appreciative that Gov. Shapiro has proposed to increase Penn State’s funding for the next fiscal year, particularly after three consecutive years of flat funding for our general support appropriation,” Bendapudi said in a written statement. “From keeping tuition costs lower for in-state students, to serving as a repository of knowledge and research-based problem-solving for the state’s agriculture industry, to driving economic development and preparing the state’s next generation of entrepreneurs, workers and leaders, the commonwealth’s investment in Penn State impacts the lives of all Pennsylvanians.
“This is the beginning of a new partnership with the governor and his administration, and I look forward to working with him and the General Assembly in the months and years ahead to continue to address the needs of our students and strengthen Penn State’s impact on the commonwealth.”
The proposed 7.1% increase in general support still remains far from a certainty. Last year, former Gov. Tom Wolf proposed a 5% increase — about $12 million — but the General Assembly bristled, instead approving a budget that did not include a general support increase for Penn State for the third straight year.
Weeks after that decision, in July 2022, Wolf instead quietly made plans to disburse $12 million in federal COVID funds to Penn State, and $18 million split among Lincoln, Pitt and Temple. But that was a one-time infusion; Penn State last saw a general support increase, of 2%, during the 2019-2020 fiscal year.
Regardless, it’s still a long road before legislators ultimately decide Penn State’s state funding.
Bendapudi is expected to appear before the House and Senate Appropriation committees for budget hearings on March 21 and 30. Both chambers must then discuss the funding of higher education, and potential changes, before a budget is ultimately passed in late June or July.
Tuition increases typically aren’t known until weeks after the state budget is passed. The board of trustees usually approves the university’s own budget in July.
Here’s a complete look at Shapiro’s proposed funding involving Penn State:
- General Support ($259.3 million): An increase of $17.2 million, or 7.1%, over last year.
- Agricultural Research and Cooperative Extension ($58.9 million): An increase of $1.2 million, or 2%, over last year.
- Pennsylvania College of Technology ($28.6 million): An increase of $1.9 million, or 7.1%, over last year.
- Penn State Health and the College of Medicine ($15.1 million): Level funding from last year.
- Invent Penn State ($2.35 million): Level funding from last year.
Penn State’s general support appropriation was part of Shapiro’s $44.4 billion budget proposal, which was unveiled Tuesday. Shapiro’s overall budget calls for nearly a 4% spending increase compared to last year.
In the proposed budget, Shapiro pitched a $60 million increase in higher education, a $567.4 million increase in basic education and a $103.8 million increase in special education.
This story was originally published March 7, 2023 at 4:50 PM.
