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April 1, 1999

New federal regulation will not affect University tuition benefits

New federal regulation will not affect University tuition benefits

Unlike some other higher education institutions, the University of Pittsburgh will not reduce employees' tuition benefits in response to a change in federal regulations, Pitt's chief financial officer says.

The U.S. Office of Management and Budget has announced that it will no longer allow universities to bill the federal government for the cost of tuition benefits paid to employees working on federal research contracts.

Previously, universities could count tuition benefits paid to such employees as indirect research-related costs.

Pitt Vice Chancellor for Budget and Controller Arthur G. Ramicone said the change will increase the cost of Pitt's tuition benefits program by $1 million during the fiscal year that begins July 1.

But Pitt will pick up the cost, he said. "We've known this change was coming for the last two years, and we've budgeted for it. For our faculty and staff, this will be a non-event," Ramicone said.

Other universities that receive large amounts of federal research funding, including Stanford and MIT, have cut tuition benefits to compensate for the loss in federal reimbursements.

— Bruce Steele

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