University Times

Pitt trustees have approved a salary pool increase of 4 percent and tuition increases of 2-6 percent as part of a $1.71 billion operating budget for fiscal year 2009, which began July 1.

The new budget, approved July 11, represents a 4.3 percent increase over last year’s $1.64 billion budget.

Pay and benefits totaling $967 million make up the largest line item on the $1.66 million expense side of the FY09 budget, followed by business and professional expenses of $244 million.

Research grants and contracts, budgeted at nearly $650 million, make up the largest revenue item, followed by net tuition of nearly $412.8 million.

Chancellor Mark A. Nordenberg announced the salary pool increase allocation this week. (See story beginning on page 1.)

Under the University’s two-tiered tuition system, tuition increases on the Pittsburgh campus for in-state School of Arts and Sciences students admitted after fall 2004 will rise to $12,832, an increase of $726 or 6 percent. Out-of-state students’ tuition will rise to $22,480, an increase of $864 or 4 percent.

On the regional campuses, most in-state students admitted after fall 2004 will see tuition increase to $11,012, up $422 or 4 percent; most out-of-state students at the regionals will see tuition rise to $20,572, an increase of $402 or 2 percent.

For those admitted before fall 2004, in-state students in the School of Arts and Sciences on the Pittsburgh campus will see tuition rise to $11,564, an increase of $654, or 6 percent. Out-of-state students’ tuition will rise to $21,904, an increase of $842 or 4 percent.

On the regional campuses, most in-state students admitted before fall 2004 will see tuition increase to $10,778, up $414 or 4 percent; most of those who are out-of-state students will see tuition rise to $20,358, an increase of $398 or 2 percent.

Along with the tuition in-creases, the board approved a 5.6 percent increase in financial aid.

University administrators were vocal in their displeasure with the size of Pitt’s state appropriation as they presented their proposed budget to the trustees budget and executive committees. Earlier this month, state legislators voted to increase state support by $2.65 million to a total of nearly $189.3 million. (See July 10 University Times.)

State support represents about 11 percent of the University’s budget.

Pitt’s 1.4 percent overall increase “compares unfavorably to the 4 percent increase in the overall commonwealth budget,” said Art Ramicone, vice chancellor for budget and controller.

Ramicone said the FY09 appropriation “continues a familiar trend,” adding that the overall increase in state support since FY01 has been $11.85 million, or 6.7 percent.

That amount, administrators said, falls far short of increases in the University’s utility costs, which during the same time frame rose $30.9 million. Nordenberg noted that represents “just one of many, many areas of cost that the University has got to meet year in and year out.”

During the same time, the state budget has grown by more than 42 percent, well above the inflation rate of about 30 percent during that period, the chancellor said.

In other business, the trustees committees approved a FY09 capital budget of $92.4 million and voted to authorize the University treasurer and vice chancellor for budget and controller to establish additional credit facilities and to permit them to draw advances of up to $200 million.

Ramicone characterized the move as the institutional equivalent of having a home equity line of credit, noting that the University currently has no working line of credit to allow it to borrow money if it has the need.

—Kimberly K. Barlow