University Times

HARRISBURG — Interim Chancellor Mark Nordenberg told the state Senate's appropriations committee on Feb. 27 that Pitt may have to raise tuition next fall beyond a proposed 3.5 percent unless the state increases its fiscal year 1996-97 subsidy to the University.

Under Gov. Tom Ridge's proposed budget, Pitt would receive virtually no increase next year in its current state appropriation of $147,265,000.

Ridge also has proposed ending the tuition challenge grant program begun by former Gov. Robert Casey. During that program's existence, institutions were rewarded with additional monies for holding tuition increases to state-designated percentages.

The only additional funding for the University in the governor's proposed budget would be an as-yet undetermined amount of money for the Pennsylvania Education Network, a proposed network of voice, video and data communications that would link the state's public schools, intermediate units, community colleges, public universities and public libraries.

In its budget presentation to the General Assembly, the University requested a 6.5 percent increase in its appropriation. If that increase is not granted, Nordenberg told the committee, both tuition and planned salary increases of 5 percent for University employees, many of whom did not receive a raise last year, would be affected. He also said "initiatives that could strengthen the University" would be affected, but did not specify what those initiatives were.

In pressing for an increase in state support, Nordenberg pointed out that Pennsylvania's appropriation over the past 20 years has shrunk from 34 percent of the University's total budget in 1975 to about 18 percent last year.

"Within the public institutions of the Association of American Universities, the group with which Pitt and Penn State most directly compete, the state appropriation amounts to 36 percent of the typical university's budget," Nordenberg said. "Clearly then, Pennsylvania's public research universities operate at a distinct competitive disadvantage. In this increasingly competitive world, that means that our commonwealth, too, operates at a distinct disadvantage." In recent years, Nordenberg also noted, the University has struggled to contain costs and cut expenses by phasing out programs, freezing salaries, reducing benefits, acquiring a single health insurance provider, utilizing new technologies, reallocating resources to advance certain programs, conducting internal and external reviews of practices, and engaging in new broad-based planning efforts that cut costs.

Interim Associate Vice Chancellor for Budget and Administration Arthur Ramicone told the committee that such moves have saved the University $24 million to $25 million over the past three years.

"We have endeavored to do more with less and we have had a good measure of success," Nordenberg said. "We are, however, rapidly reaching our limits." Members of the committee were generally friendly and receptive toward the Pitt delegation. They asked few tough questions, but Sen. Stewart Greenleaf, R-Montgomery County, did appear concerned that Pitt might raise its tuition beyond the proposed 3.5 percent if it does not receive additional state monies.

"There are some people who say that there are always some places where you can cut, there are always some places you can make-do if you don't get an increase," Greenleaf said. "And maybe that is the case. And if it is you should tell us, and then we won't fight for additional funding for your university and the other universities in the commonwealth. I am prepared to do that, but you have to tell me why there is a need for additional money and if you don't get it what are the consequences." Without knowing whether Pitt will receive additional money beyond that in the governor's proposed budget, Nordenberg said, it would be difficult to predict exact consequences. When Greenleaf told the interim chancellor to assume there might not be any increase, Nordenberg said the first result would be a larger-than-proposed tuition hike. He added that it also would affect salary increases for employees and adversely affect some programs.

When told by Nordenberg that Pitt's annual tuition is $5,124, Greenleaf seemed concerned that the governor's proposed budget might increase the tuition burden on Pennsylvania families who have children attending Pitt and other state-owned or state-related institutions.

In response to Greenleaf's query about whether Pitt is doing all it can to cut costs, Nordenberg noted that he was directed by the Board of Trustees last week to immediately find additional ways to cut expenses and save resources.

"I wish I could tell you now what the results of that effort will be," the interim chancellor said.

Sen. William Stewart, D-Cambria County, voiced concern over plans by Penn State to convert many of its two-year campuses into four-year, degree-granting campuses. Stewart pointed out that Penn State's Altoona campus is only 40 minutes from Pitt's Johnstown campus (UPJ).

"What are you going to do to help the Johnstown campus keep and grab some of that market share?" Stewart asked. "And not just Johnstown, but anywhere else Pitt might feel the effects of a Penn State entry into one of your service areas?" Nordenberg said he hopes that Pitt and Penn State can find ways to cooperate and utilize each other's strengths so that they do not find themselves competing.

Stewart interrupted to point out "that this is a very competitive age in higher education. You are getting no increases from government, either federal or state. You are forced to go to tuition and that is going to max out. You're going to reach a point of diminishing returns there. So, as in any business, you've got to do more volume." Nordenberg said that he is more concerned about the state university system taking away potential students from UPJ and other Pitt campuses.

One of the major reasons students are opting to attend such state-owned schools as Indiana University of Pennsylvania is that tuition at those schools is far less than at Pitt or Penn State, Nordenberg noted.

"If we do find ourselves in a competitive situation," he added, "I can only say that I think both the current quality and the traditions of the Johnstown campus, supported by those of us in Oakland, will position us to compete effectively." While acknowledging that he was happy to hear Nordenberg say he felt that UPJ could successfully compete with Penn State's Altoona campus, Stewart urged Pitt to pay attention to what other schools are doing and recognize that higher education is becoming part of the "dog eat dog business world." Interim Chancellor Nordenberg and other Pitt officials are scheduled to testify before the state House of Representatives' appropriations committee on March 5 at 2 p.m. in the Majority Caucus Room, 140 Main Capitol Building.

–Mike Sajna