By SUSAN JONES
The state budget signed by Gov. Josh Shapiro on July 11 keeps the general funding for Pitt and the three other state-related universities — Penn State, Temple and Lincoln — at the same level it’s been since 2019, but does give a $445,000 boost to Pitt’s rural education outreach.
The governor also signed a bill that creates a Performance-based Funding Council that will work to develop recommendations for a process that uses performance-based metrics to distribute funding to state-related schools, and will present them no later than April 30, 2025.
In a statement, a University spokesman said: “We are thankful for the General Assembly’s support and look forward to continuing to strengthen our partnership with the legislature and the governor’s administration. We are also committed to demonstrating how the University of Pittsburgh delivers for our students and puts Pennsylvania on a path to a more competitive workforce and a more robust economy.”
"The University is very supportive of the Performance-Based Funding Council charged with developing a new funding system for state-related universities. Such performance benchmarks would increase accountability and transparency while creating pathways for increased state funding for Pitt."
Budget numbers
Pitt will once again receive $151.5 million in general support. Each state-related school uses money from the state to give tuition discounts to in-state students. At Pitt, that means around $15,000 annually per student.
The total for rural education outreach was increased from $3,346,000 to $3,791,000.
In his budget proposal, Gov. Shapiro asked for a 5 percent increase for each of the schools, which would have meant about $7.5 million more for Pitt.
In an interview earlier this week, Pitt Board of Trustees Chair John Verbanac said the administration and Board of Trustees used Shapiro’s proposed 5 percent increase to develop the University’s 2024-25 budget released today, even though, he said, “History tells us that (the governor’s request) is not always realized.”
Verbanac said prior to the state budget’s approval that if the increase does not come through, Pitt will delve into its reserves to make up the difference. “We continually try to build reserves, whether it’s for capital maintenance projects, etc.,” he said.
Thurman Wingrove, interim chief financial officer, told the Trustees’ Budget committee on Friday, July 12, that the University budget for 2024-25 now reflects the flat funding.
“But we did have to take several steps as we were building the budget this year to ensure we had contingencies built in just in case those funds were not received,” Wingrove said. “We identified certain nonessential costs and initiatives that we felt could be either deferred or eliminated if the appropriation was not received. There were also certain initiatives that we felt could be perhaps partially funded, or cost-shared with existing budgets in the schools in the units.”
Over the past two decades, the percentage of Pitt’s budget that comes from the state has gone down fairly precipitously, and is now at about 6 percent.
Verbanac said the major concern is always whether Pitt will get state funding at all, “And that keeps me up at night.”
Over the past few years, various lawmakers have used the funding bill as a bargaining chip to push other agenda items. Two years ago, some House members proposed cutting funding to Pitt entirely because of research involving fetal tissues. Others have sought to move money that goes to all state-related schools to a voucher system for students to use at any Pennsylvania school.
In June, the Senate voted 41-7 to withhold state funding from colleges and universities that divest from or boycott Israeli companies. The bill was sent to the House, where it remains.
Verbanac said he and Chancellor Joan Gabel and Pitt’s government relations team have spent a great deal of time this year talking to legislators about the funding. The biggest challenge, he said, is getting the two-thirds majority needed in both the House and Senate to pass the state-related schools funding bill.
“The two-thirds requirement is a very high bar for government to meet today, but it’s also a reflection, I think, of how important a quality higher education is,” he said. “Think about how many things you could get two-thirds of a legislature or a Congress to agree to. … There’s a lot of support that exists for what we do. And I think sometimes we concentrate on the few who maybe don’t share that view. Sadly enough, because the bar so high, it makes them relevant.”
Shapiro also had proposed moving the funding for state-related schools under the Education Department, where it would only need a simple majority, but Republican lawmakers showed no interest in making that change.
Performance-based funding
The Performance-based Funding Council will include five voting members — the secretary of education and four members appointed by House and Senate leadership — and three nonvoting members from Pitt, Penn State and Temple.
At her appearance before the House appropriations committee in March, Gabel said Pitt is “very much in support” of developing these metrics. She said she’s seen these work best earlier in her career when they reflect the specific institutions and are developed collaboratively. The bill provides for each school to submit its own metrics.
Some of the metrics the council will consider include:
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The two-year and four-year graduation rates.
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The number and percentage of undergraduate students from the state who received a Pell Grant.
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Student retention rates.
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Net tuition and fees per 120 credit hours.
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Post-graduation employment rates and salaries.
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The number of students who attain credentials in high-priority occupations in the commonwealth.
The council will submit its recommendations to the governor, a newly created State Board of Higher Education, the Department of Education and the General Assembly. Under the bill, the council will meet every five years to re-evaluate how the performance metrics are working.
Other legislation
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A new scholarship program called “Grow PA” will give grants of up to $5,000 annually to in-state students who pursue degrees that lead to an “in-demand” profession, including agriculture, education, business, nursing and trades. They also must agree to work in Pennsylvania for 12 months for every year in which they receive a grant. These will be available beginning in the 2024-25 academic year.
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The annual household income limit for the existing “Ready to Succeed” scholarship program will increase from $126,000 to $175,000.
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The legislature also approved reforms to the state's name, image and likeness statute, which allows student athletes to be compensated for use of their name, image and likeness. Chancellor Gabel said at today’s Board of Trustees meeting, “We were very pleased that the legislature approved the language supported by Pitt and Penn State that prevents the NCAA or conferences or other athletic associations from entertaining complaints or opening investigations or taking other adverse action against an institution of higher education for directly compensating student athletes for the use of that athletes name, image or likeness.” She said this puts Pennsylvania on equal footing with other states “as we address this new, competitive athletic environment that we find ourselves in.”
Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.
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