University Times

In its annual budget request, the University is asking the state for an 8.5 percent increase in commonwealth support for fiscal year 2009, seeking $202.8 million, including nearly $178.3 million for education and general (E&G) funding.

The request, released Sept. 21, states that with that level of state support, the University intends to limit tuition increases to 4 percent and to increase the compensation pool by at least 4 percent for FY09, which begins July 1, 2008.

Other line items in the request are: nearly $2.67 million for rural education outreach; $567,000 for the Services for Teens at Risk program; $472,000 for student life initiatives, and $480,000 for disadvantaged students.

The request also seeks $9.98 million for the School of Medicine, $8.76 million for Western Psychiatric Institute and Clinic, $1.17 million for the dental clinic and $459,000 for the Center for Public Health Practice. These four line items now are funded through the Department of Public Welfare with matching federal funds as part of a federalization initiative implemented in FY06.

Last year, Pitt requested $198.54 million, including nearly $174.8 million in E&G funding for FY08, but state legislators came through with an increase only slightly higher than the 2 percent initially proposed by Gov. Edward G. Rendell. Pennsylvania’s portion of Pitt’s FY08 budget totaled $186.9 million, including $164.3 million in E&G funding.

Vice Chancellor for Governmental Relations Paul Supowitz acknowledged that percentage-wise, the current request is identical to last year’s request for 8.5 percent more in state support, adding that the University must make its needs known to the state.

He was reluctant to make any predictions as to the state’s response.

“So far in advance of budget season, it’s hard to say what the climate will be,” he said.

While the amount of state support Gov. Rendell has in mind for Pitt this year won’t be known until his proposed budget is presented in February, Vice Chancellor for Budget and Controller Arthur G. Ramicone is expecting another tough year.

“The commonwealth spent some one-time money last year to balance the budget,” he told the Senate budget policies committee earlier this month. “Revenue streams are not going to be so robust,” he predicted.

In its request, the University touts its research strength, innovations, accountability and contributions to the local economy, as well as the academic achievements of its students. It also points out that commonwealth support has been lacking, stating: “Unfortunately, contributions by the commonwealth have not met expectations, and a greater share of the burden has had to be carried by students and their parents and by private donors. Their support for the University has demonstrated that the value of a Pitt education and the contributions Pitt makes to the people of the commonwealth are widely recognized. Despite higher than hoped for tuition levels necessitated by the inadequacy of commonwealth support, applications have increased significantly and the quality of the students who enroll has improved dramatically.”

In the FY08 budget, passed in July, University trustees approved in-state tuition increases of 6.5 percent for the Pittsburgh campus and 4 percent for Pitt’s regionals, as well as out-of-state tuition increases of 4.5 percent for the Pittsburgh campus and 2 percent at the regionals. The salary pool was increased 3.5 percent.

(See July 26, 2007 University Times.)

In this year’s request for additional E&G funding, the University bluntly points out the relationship between the state appropriation and tuition increases. “The level of commonwealth support for Educational and General purposes directly affects the tuition that Pitt must charge its students,” the request states, tracing the decline in appropriations over the past decade that had begun to reverse before again retreating.

“While the FY 2007 appropriation was the most significant increase in years, the FY 2008 appropriation increase of 2.1 percent represents a step backwards as that level of support not only diminishes the progress made in the prior three years, but also fails to even keep pace with the inflationary pressures felt by the University budget,” the request states.

“An adequate and predictable increase in our appropriation is essential if Pitt is to offer a quality education to qualified Pennsylvania students at an affordable price.”

—Kimberly K. Barlow