Budget Schedules

THE PENNSYLVANIA STATE UNIVERSITY
2008-09 OPERATING BUDGET

The Board of Trustees will be asked to consider and approve Penn State's operating budget at its meeting on July 11, 2008.

SUMMARY OF THE BUDGET PLAN

For 2008-09, Penn State's operating budget plan provides a level of support that will maintain the high quality of the educational experience for our students and continue the University's efforts to moderate tuition increases.

     At this writing, final action has not been taken on Penn State's 2008-09 State Appropriation. As a result, the budget plan includes an estimated appropriation that is based on the appropriation bill for Penn State currently under consideration by the General Assembly.

     The proposed budget keeps tuition increases at the lowest possible level. The tuition rate increase for lower division Pennsylvania resident students at the University Park campus will be 5.9 percent, while the tuition rate increase for lower division non-resident students at University Park will be 4.7 percent. For the Commonwealth Campuses, the tuition increase for both lower division resident and non-resident students will be 5.3 percent.

     The budget also includes internal expense reductions of $7.2 million from the academic and administrative units, representing a 1.0 percent across-the-board reduction in departmental operating budgets. This will be the seventeenth consecutive year that the University has had a program of internal budget reductions and reallocations in effect. An increase of $4.9 million in non-tuition income is projected for 2008-09. In combination, internal budget reductions and non-tuition income enhancements total $12.1 million. This is equivalent to $170 per year in tuition for each student, or 1.4 percent in avoided tuition increase.

     Funds are allocated for a select group of strategic investments and to provide for modest salary adjustments for faculty and staff. The budget also includes funds for escalating health care and other insurances, for rapidly increasing fuel and utilities costs, for the maintenance and operation of new and newly remodeled facilities scheduled to come on-line in 2008-09, for the University's capital improvement program, for improvements in libraries and information technology, and for need-based student aid.

2008-09 TOTAL OPERATING BUDGET

Penn State's adjusted total operating budget for 2007-08 is $3,432,811,000. For 2008-09, the University is proposing changes totaling $126,507,000 in general funds, restricted funds, and auxiliary enterprises, plus $48,126,000 at the Milton S. Hershey Medical Center. The proposed total operating budget of $3,607,444,000 represents a 5.1 percent increase. A summary of the budget is shown on Table 1.

STATE APPROPRIATION

Penn State's estimated total appropriation for 2008-09 is $338,375,000 (see Table 2). This reflects increases of 1.5 percent in the Educational and General line item and the operations line item for the Pennsylvania College of Technology. No increases are included in the line items for Agricultural Research and Cooperative Extension.

Following the approach initiated three years ago, the line-item appropriations for the College of Medicine at the Milton S. Hershey Medical Center again will be eliminated from Penn State's appropriation bill. Instead, State and Federal Medical Assistance funds estimated at $14,407,000 will be directed to the Milton S. Hershey Medical Center. These funds will be transferred to the Medical Center through the Pennsylvania Department of Public Welfare.

THE GENERAL FUNDS BUDGET

     The components of the general funds budget include: the Educational and General budget, which supports most of the University's basic teaching, research, and public service programs; the budgets for Agricultural Research and Cooperative Extension, which remain separate from the Educational and General budget by virtue of their separate line-item funding: the College of Medicine at the Milton S. Hershey Medical Center; and the Pennsylvania College of Technology.

     Excluding the College of Medicine and the Pennsylvania College of Technology, nearly 93.0 percent of the income supporting the 2008-09 general funds budget will come from tuition (72.2 percent) and state appropriations (20.4 percent).

     The sections that follow focus on the changes in the general funds budget, including the Educational and General budget, Agricultural Research and Cooperative Extension, the College of Medicine at Hershey, and the Pennsylvania College of Technology.


TABLE 1 TOTAL UNIVERSITY BUDGET SUMMARY OF 2008-09 CHANGES

	2007-08 Adjusted Budget	Changes	2008-09 Budget
General Funds:
Educational and General	$1,397,232,000	$77,451,000	$1,474,683,000
Agricultural Research	27,956,000	(1,000)	27,955,000
Cooperative Extension	31,781,000	0	31,781,000

Sub -Total	1,456,969,000	77,450,000	1,534,419,000
College of Medicine	86,512,000	2,722,000	89,234,000
Pennsylvania College of Technology	87,804,000	6,310,000	94,114,000

Total - General Funds	1,631,285,000	86,482,000	1,717,767,000

Federal Funds - Agriculture	19,144,000	0	19,144,000

Restricted Funds:
Educational and General	446,190,000	22,310,000	468,500,000
Agricultural Research	27,450,000	1,370,000	28,820,000
Cooperative Extension	14,610,000	730,000	15,340,000
College of Medicine	72,000,000	4,000,000	76,000,000
Pennsylvania College of Technology	26,168,000	(3,745,000)	22,423,000

Total - Restricted Funds	586,418,000	24,665,000	611,083,000

Auxiliary Enterprises:
Educational and General	280,929,000	12,854,000	293,783,000
College of Medicine	3,821,000	78,000	3,899,000
Pennsylvania College of Technology	20,075,000	2,428,000	22,503,000

Total - Auxiliary Enterprises	304,825,000	15,360,000	320,185,000

TOTAL	$2,541,672,000	$126,507,000	$2,668,179,000

The Milton S. Hershey Medical Center	891,139,000	48,126,000	939,265,000

TOTAL UNIVERSITY	$3,432,811,000	$174,633,000	$3,607,444,000

TABLE 2 SUMMARY OF ESTIMATED 2008-09 STATE APPROPRIATION

Line Items:	2007-08 Appropriation	Change	2008-09 Estimated Appropriation	Percent Change

Educational and General:
Educational and General	$263,499,000	3,952,000	$267,451,000	1.5%
Recruitment and Retention of Disadvantaged Students	454,000	0	454,000	0.0%

Sub-Total - Educ. & Gen.	263,953,000	3,952,000	267,905,000	1.5%

Agricultural Research & Cooperative Extension:
Agricultural Research	25,595,000	(1,000)	25,594,000	0.0%
Cooperative Extension	30,384,000	0	30,384,000	0.0%

Sub-Total - Ag Research & Cooperative Extension	55,979,000	(1,000)	55,978,000	0.0%

Pennsylvania College of Technology:
Operations	12,909,000	194,000	13,103,000	1.5%
Debt Services	1,389,000	0	1,389,000	0.0%

Sub-Total - Pennsylvania College of Technology	14,298,000	194,000	14,492,000	1.4%

TOTAL APPROPRIATION	$334,230,000	$4,145,000	$338,375,000	1.2%

Note: An estimated $14,407,000 from State and Federal Medical Assistance funds will be available to the Milton S. Hershey Medical Center for 2008-09. These funds will be provided through the Pennsylvania Department of Public Welfare.

EDUCATIONAL AND GENERAL BUDGET

EDUCATIONAL AND GENERAL EXPENSE CHANGES

Expense changes for the 2008-09 Educational and General portion of the University's general funds operating budget are described below and summarized in Table 3.

SALARY ADJUSTMENTS

Salary adjustments represent the largest component of the changes in the Educational and General operating budget. In 2000, the Board of Trustees adopted a multi-year plan to make Penn State's faculty salaries, which had been falling dramatically against other universities nationally, more competitive relative to our peer institutions in the Big Ten and Association of American Universities. This plan proved successful and showed steady improvement in our rankings through 2005-06. Limited funding for salary adjustments in the 2006-07 budget resulted in some decline in our rankings, while our 2007-08 increases enabled us to maintain our 2006-07 position. Information regarding Penn State's faculty salary rankings can be found in Tab D of this document.

The University's proposed salary increase plan for 2008-09 will again be modest. Penn State is committed to awarding salary increases principally on the basis of merit as determined by annual evaluations. A salary increase pool of 2.0 percent will be used for merit-based increases and for market and equity considerations for groups or individuals within the unit. For 2008-09, the budget includes $17,829,000 for salary increases and $4,121,000 for related benefits, for a total of $21,950,000.

PRESIDENT'S EXCELLENCE FUND

To provide additional support for salary concerns, the budget also includes $7,925,000 for the President's Excellence Fund. This amount represents 1.5 percent of the filled position salary base for faculty and staff, and will be used for special merit, market, equity, and compression considerations.

BENEFITS

For 2008-09, the cost of the University's benefits program will increase by $16,368,000. These changes include:

     1.  Health Insurances -- $13,876,000

     Rising health care insurance costs continue to create challenges for both employers and employees across the country -- a trend which is expected to persist for the foreseeable future. The University is projecting an increase of 12 percent in health care costs for 2008-09.

     Penn State has aggressively pursued efforts to mitigate its health care costs. Beginning January 1, 2008, the University entered into a ten-year agreement with Highmark Blue Shield. As part of this new agreement, Highmark is the exclusive administrator of all health plans offered to Penn State's employees and retirees, and their dependents, allowing the University to offer a comprehensive benefits plan across its geographically diverse locations. This partnership with Highmark provides a joint focus, involving the Hershey Medical Center, the College of Medicine, the College of Health and Human Development and the Mount Nittany Medical Center, on the development of wellness and disease management programs which will provide savings that will enable Penn State to reduce annual health care cost increases in future years.

     2. Retirement and Social Security -- $2,492,000

     The budget plan for 2008-09 includes a projected increase of $1,742,000 for employer contributions to the TIAA/CREF retirement program due to increased participation in this program. In addition, $750,000 is included for changes in the social security base.

     The budget does not include an increase in the employer contribution rate for the State Employees' Retirement System (SERS). The University has been advised by SERS that the 2008-09 employer contribution rate will continue at essentially current levels. Actuarial projections continue to show the rates increasing significantly in future years, and actions to address the issue are under consideration by the Governor's Budget Office and the General Assembly. This is an area of concern for Penn State, and the University continues to monitor the situation closely.

PROPERTY AND LIABILITY INSURANCES

The University is expecting additional increases in property and liability insurances. A total of $918,000 is included in the budget for these expected cost increases.

FACILITIES AND MAINTENANCE COST INCREASES

     1.  Maintenance and Operation of New Facilities – $2,620,000

     A total of $2,620,000 will be budgeted for the maintenance and operation of new or newly remodeled facilities scheduled to come on-line in 2008-09. Operating funds for projects at University Park include the new Lewis Katz Building which will house the Dickinson School of Law, the Bio-Safety Level 3 facility, building renovations and lease costs on a new building at Innovation Park that will be occupied principally by Outreach activities. Funds also are included for a classroom building at Penn State Worthington Scranton; an addition to the Multi-Purpose Building at Penn State Schuylkill; and for the Penn Tower, Kazmaier, and Geo Trustee Buildings at Penn State Altoona.

     2. Fuel and Utilities Cost Increases -- $5,920,000

     Funds in the amount of $5,920,000 are included in the 2008-09 budget for projected increases in fuel and utilities costs at all campuses. Global and national events have had a dramatic impact on these costs, and trends in the marketplace indicate that significant increases will continue for electricity, coal, and natural gas in the future.

    3. Capital Improvement Program -- $3,650,000

     Penn State continues to lag behind its peers in providing modern laboratory and classroom space for its academic programs. Even with the new facilities constructed over the last several years, Penn State still has among the lowest overall space per full-time-equivalent (FTE) student of any public university in the Big Ten. While capital funds received from the Commonwealth are greatly appreciated, they will not be sufficient to meet the University's most critical needs. As a result, the University established an ongoing general funds budget to support the capital improvement program. These funds enable the University to incur debt for building renovations and construction. A total of $3,650,000 is included in the budget for 2008-09.

    4. Deferred Maintenance -- $2,000,000

     Penn State's physical plant is aging, and deferred maintenance continues to be a critical problem. During this decade, more square footage will reach the 35-year threshold, where major maintenance is required, than at any time in the University's history. Currently, the University has permanently budgeted approximately $22,500,000 for deferred maintenance. More needs to be done, however, to address the maintenance backlog. For 2008-09, additional support of $2,000,000 is included for deferred maintenance at University Park and the Commonwealth Campuses.

STRATEGIC INITIATIVES

Funding in the amount of $2,335,000 is included in the 2008-09 budget for a select group of initiatives that are of strategic importance to the University. A portion of these funds will provide the second year of support for a new energy initiative through the Penn State Institutes of Energy and the Environment. Penn State has considerable strength in energy science and engineering through the Colleges of Agricultural Sciences, Engineering, Earth and Mineral Sciences, and the Eberly College of Science. The University is well positioned to become one of the top universities in the nation in the energy field. Funds will be allocated for the hiring of additional faculty positions in key focus areas related to the energy initiative. In addition, funds will support modest investments in teacher education, journalism, and the security and risk analysis program. Enhancement funds also will be provided for high priority needs in a limited number of academic programs and for the Huck Institutes of the Life Sciences.

LIBRARIES AND INFORMATION TECHNOLOGY

A total of $1,405,000 is included in the budget for libraries and information technology. These funds will help the University keep pace with rapidly expanding and changing student computing, telecommunications, and information resource needs. This funding will be provided through a $10 per semester increase in the student information technology fee at all campuses.

OTHER PROGRAM COMMITMENTS

A total of $5,469,000 is included for other program commitments. Of this amount, $700,000 will be allocated for new faculty positions and for instructional workload adjustments that reflect enrollment changes in the colleges. In addition, $3,177,000 will be provided for high priority academic needs and $1,592,000 will be allocated for other support services, including information technology services, environmental health and safety programs and OSHA compliance, and the university-wide parking and transportation plans.

BUDGET REDUCTIONS AND NON-TUITION INCOME ENHANCEMENTS

For 2008-09, the budget includes internal expense reductions totaling ($7,244,000) from the academic and administrative units, representing a 1.0 percent across-the-board reduction in department operating funds. This is the seventeenth consecutive year that internal budget reductions have been used to balance the budget while keeping the tuition increase lower than would be necessary otherwise. An increase of $4,900,000 in non-tuition income as a result of increased facilities and administration cost recovery from sponsored research grants and contracts, and investment income is projected for 2008-09. In combination, internal budget reductions and non-tuition income enhancements total $12,144,000. This is equivalent to $170 per student, or 1.4 percent in avoided tuition increase for 2008-09.

STUDENT ACTIVITIES

An additional $1,061,000 will result from a $6 per semester increase in the Student Activities Fee at University Park and increases ranging from $0 to $15 per semester at the other campuses, as determined by the students themselves. These funds will be used to support student activities and programs at the generating campuses. Student Activities Fee charges by campus can be found on Schedule 3 in Tab B of this document.

STUDENT FACILITIES

A total of $7,854,000 is included in the budget for the new Student Facilities Fee approved by the Board of Trustees at its May 2008 meeting. Funds resulting from the fee will be used to support capital projects designated to enhance student activities, fitness and recreation. Projects to be undertaken at each campus will be identified by the appropriate campus officials. Student input will be obtained in determining priorities and ideas for potential projects through campus advisory groups that represent all constituencies. At University Park, the fee will be phased in over the next two academic years. Beginning in Fall Semester 2008 students at University Park will be charged $50 per semester. In the Fall of 2009, the fee will be increased to $100 per semester. For the other campuses, the Chancellors determined the level of the fee for their campus. Seven campuses proposed fees of $100 per semester, one campus proposed a fee of $75 per semester, and ten campuses proposed fees of $50 per semester. Five campuses, Hazleton, Shenango, the Dickinson School of Law at Carlisle, Great Valley, and the College of Medicine, elected not to implement the fee. A summary of the Student Facilities Fee charges for each campus can be found on Schedule 4 in Tab B of this document.

NEED-BASED STUDENT AID

As the University implements tuition increases to provide necessary funds to meet its strategic goals, it is imperative that the amount of need-based student aid also be increased. This will help the University meet its continuing goal that any student from the Commonwealth will be able to attend Penn State through a combination of institutional, federal, state, and private philanthropic support.

A total of $1,000,000 is included in the 2008-09 budget for need-based student aid. These funds will be used to leverage additional private donations for student support through the Trustee Scholarship Program. An additional $90,000 also will be available for the Dickinson School of Law.

GRANTS-IN-AID RELATED TO TUITION RATE INCREASES

A total of $4,130,000 is included in the 2008-09 budget for increased costs of grants-in-aid, which are related to the tuition rate increases, primarily for graduate assistants, fellowships, employees and dependents.




TABLE 3 EDUCATIONAL AND GENERAL OPERATING BUDGET 2008-09 EXPENSE CHANGES

Salary Adjustments
	1. Salary Increases	$17,829,000
	2. Benefits Related to Salary Increases	4,121,000
	Sub-Total - Salary Adjustments	21,950,000

President's Excellence Fund		7,925,000
Benefits
	1. Employee Health Insurances	13,876,000
	2. Retirement & Social Security	2,492,000
	Sub-Total - Benefits	16,368,000

Property and Liability Insurances		918,000

Facilities and Maintenance
	1. Maintenance and Operation of New Facilities	2,620,000
	2. Fuel & Utilities	5,920,000
	3. Capital Improvement Program	3,650,000
	4. Deferred Maintenance	2,000,000
	Sub-Total - Facilities and Maintenance	14,190,000

Strategic Initiatives		2,335,000
Libraries and Information Technology		1,405,000
Other Program Commitments		5,469,000
Internal Budget Reductions		(7,244,000)
Student Activities		1,061,000
Student Facilities		7,854,000
Need-Based Student Aid		1,090,000
Grants-In-Aid		4,130,000

TOTAL EXPENSE CHANGES		$77,451,000

EDUCATIONAL AND GENERAL INCOME CHANGES

Income changes of $77,451,000 support the 2008-09 Educational and General budget. These changes are described below and summarized in Table 4.

STATE APPROPRIATION

The Educational and General appropriation line item for 2008-09 will increase by $3,952,000 or 1.5 percent, over the 2007-08 level. The Recruitment and Retention of Disadvantaged Students line item will remain unchanged over the 2007-08 level (see Table 2).

TUITION

     Tuition rate schedules for resident and non-resident students by student level and by campus are shown on Schedule 1 in Tab B of this document. For resident lower division students, the tuition increase for 2008-09 will be $365 per semester at University Park, $289 per semester at Erie, Harrisburg, Altoona and Berks, and $277 per semester at other Penn State campuses.

     Based on the recommendations of the Tuition Task Force adopted by the Board of Trustees in July 2002, tuition increases for non-resident students will be set at 1.5 times the increases for resident students, reflecting more appropriately the increases in the actual costs of instruction. For University Park students, where the current differential is 1.9 to 1 between non-resident and resident tuition, this will result in percentage increases that are less for non-resident students than those for resident students. For most campuses, where the current differential is 1.5 to 1, the percentage increases will be similar to those for resident students. For non-resident lower division students, the tuition increase for 2008-09 will be $548 per semester at University Park, $442 per semester at Erie, Harrisburg, Altoona and Berks, and $422 per semester at other Penn State campuses.

     Following approval by the Board of Trustees, specific tuition rates by campus, program, and student level will be available to students, parents, and the general public at the website: http://tuition.psu.edu.

     The tuition rate changes will generate an additional $49,795,000 in tuition income for 2008-09. Additional tuition income of $10,317,000 will also be budgeted as a result of enrollment growth experienced at University Park for the 2006-07 and 2007-08 academic years, for a total of $60,112,000.

INFORMATION TECHNOLOGY FEE

A $10 increase in the current $212 per semester information technology fee will help support the rapidly expanding information and technology needs of Penn State students. This will generate $1,405,000 in additional income for 2008-09.

STUDENT ACTIVITIES FEE

An additional $1,061,000 will result from a $6 per semester increase in the Student Activities Fee at University Park and increases ranging from $0 to $15 at the other campuses.

STUDENT FACILITIES FEE

A total of $7,854,000 will be available as a result of the new Student Facilities Fee. Beginning in Fall Semester 2008, students at University Park will be charged $50 per semester. In the Fall of 2009, the fee will be increased to $100 per semester. For the other campuses, the fee levels range from $0 to $100 per semester.

FACILITIES AND ADMINISTRATION COST RECOVERY

Over the past several years, the University has made a significant effort to better track and more fully account for costs in support of sponsored research activities. As a result of this initiative, additional income in the amount of $3,900,000 will be available from increased facilities and administration cost recovery from grants and contracts in 2008-09.

INVESTMENT INCOME

Additional investment income of $1,000,000 is projected for 2008-09.

TRANSFER TO THE COLLEGE OF MEDICINE

A total of $2,000,000 will be transferred from the Educational and General budget to help support employee benefits costs for the College of Medicine.



TABLE 4 EDUCATIONAL AND GENERAL OPERATING BUDGET 2008-09 INCOME CHANGES

State Appropriation
	Educational and General	$3,952,000
	Recruitment and Retention of Disadvantaged Students	0

	Sub-Total - State Appropriation	$3,952,000

	Tuition	60,112,000
	Information Technology Fee	1,405,000
	Student Activities Fee	1,061,000
	Student Facilities Fee	7,854,000
	Facilities and Administration Cost Recovery	3,900,000
	Investment Income	1,000,000
	Other Income	167,000
	Transfer to College of Medicine	(2,000,000)

	TOTAL INCOME CHANGES	$77,451,000


TABLE 5 AGRICULTURAL RESEARCH AND COOPERATIVE EXTENSION 2008-09 CHANGES

AGRICULTURAL RESEARCH

Expense:
	Salary Adjustments and Benefits Costs*	$1,032,000
	Program Changes	(1,033,000)

TOTAL EXPENSE CHANGES		($1,000)

Income:
	Appropriation Changes	($1,000)

TOTAL INCOME CHANGES		($1,000)

COOPERATIVE EXTENSION

Expense:

	Salary Adjustments and Benefits Costs*	$1,175,000
	Program Changes	(1,175,000)

TOTAL EXPENSE CHANGES		$0

Income:
	Appropriation Changes	0

TOTAL INCOME CHANGES		$0


*Includes benefits cost increases for salaries paid on Agricultural Federal funds.

THE COLLEGE OF MEDICINE
AND
THE MILTON S. HERSHEY MEDICAL CENTER

COLLEGE OF MEDICINE

     General funds expense and income changes for the College of Medicine at the Hershey Medical Center for 2008-09 are shown on Table 6.

     Expenses will increase by a total of $2,722,000, including: $556,000 for instruction; $992,000 for additional program commitments, $787,000 for salary adjustments; a decrease of ($401,000) for benefits costs; and, $788,000 for facilities and physical plant cost increases.

     On the income side, funds from the Educational and General budget in the amount of $2,000,000 will be transferred to support expenditures in the College of Medicine. Other income changes include: an increase of $755,000 in earnings of departments; a decrease of ($2,000,000) in academic support from the Milton S. Hershey Medical Center; and an increase of $300,000 in facilities and administration and investment income.

     The tuition rate increase for Doctor of Medicine students will be $1,956 per academic year for Pennsylvania residents and $1,334 for non-residents. The combined tuition increases for medical students, graduate students, and continuing education students will result in an additional $1,667,000 in tuition income for 2008-09.

     The total 2008-09 operating budget for the College of Medicine is $169,133,000, as shown on Table 6A. The budget includes $89,234,000 for general funds, $76,000,000 for restricted funds and $3,899,000 for auxiliary enterprises.

THE MILTON S. HERSHEY MEDICAL CENTER

     The Milton S. Hershey Medical Center is a subsidiary corporation within Penn State that was formed to operate the clinical activities, both hospital and physician, that occur at the Hershey Medical Center.

     Budgeted expenses and income of $939,265,000 for 2008-09, as shown on Table 6A, were approved by the Board of Directors of the Milton S. Hershey Medical Center on June 19, 2008.

     When combined with the College of Medicine, the budget for the entire medical center operation for 2008-09 is $1,108,398,000.

TABLE 6 THE COLLEGE OF MEDICINE 2008-09 GENERAL FUNDS BUDGET CHANGES

Expense:
	Instruction	$556,000
	Program Needs	992,000
	Salary Adjustments	787,000
	Benefits	(401,000)
	Facilities and Physical Plant	788,000

TOTAL EXPENSE CHANGES		$2,722,000


Income:
	Tuition and Fees	$1,667,00
	Transfer from Educational and General	2,000,000
	Earnings of Departments	755,000
	Academic Support from The M. S. Hershey Medical Center	(2,000,000)
	Facilities & Administration, Investment & Income	300,000

TOTAL - INCOME CHANGES		$2,722,000

TABLE 6A THE COLLEGE OF MEDICINE AND THE MILTON S. HERSHEY MEDICAL CENTER 2008-09 TOTAL OPERATING BUDGET

	2007-08 Adjusted Budget	Changes	2008-09 Budget

College of Medicine (COM):
General Funds	$86,512,000	$2,722,000	$89,234,000
Restricted Funds	72,000,000	4,000,000	76,000,000
Auxiliary Enterprises	3,821,000	78,000	3,899,000

Sub-Total - COM	162,333,000	6,800,000	169,133,000

Milton S. Hershey Medical Center	891,139,000	48,126,000	939,265,000


TOTAL	$1,053,472,000	$54,926,000	$1,108,398,000

THE PENNSYLVANIA COLLEGE OF TECHNOLOGY

EXPENSE AND INCOME CHANGES

     Expense and income changes included in the 2008-09 budget for the Pennsylvania College of Technology (Penn College) are described below and shown in Tables 7 and 7A.

     General funds expenses for 2008-09 will increase by $6,310,000. Included are $3,115,000 for salary adjustments, $411,000 for employee benefits cost increases, and $792,000 for other expense increases. Expenses related to Penn College plant funds will increase by $1,992,000.

     The 2008-09 general funds budget for Penn College includes income changes of $6,310,000. The state appropriation for operations will be increased by $194,000 over the 2007-08 level. Tuition and fees will increase by $270 per semester for Pennsylvania resident students (based on a 15-credit course schedule). A total of $4,263,000 in new tuition and fees income will be available from rate increases and from projected enrollment growth. Other income will be reduced by ($139,000). The income to support plant funds will increase by $1,992,000. The state appropriation for debt service remains unchanged over the 2007-08 level.

     The total 2008-09 operating budget for the Penn College is $139,040,000, as shown on Table 7A. This includes the general funds budget of $94,114,000, restricted funds of $22,423,000, and $22,503,000 for auxiliary enterprises.


TABLE 7 THE PENNSYLVANIA COLLEGE OF TECHNOLOGY 2008-09 GENERAL FUNDS BUDGET CHANGES

Expense:
	Operations:
	Salary Adjustments	$3,115,000
	Employee Benefits	411,000
	Other Expense	792,000

	Sub-Total - Operations	4,318,000

	Plant Funds:
	Debt Service	2,103,000
	Renewal and Replacement Expenses	(111,000)

	Sub-Total - Plant Funds	1,992,000

TOTAL - EXPENSE CHANGES		$6,310,000

Income:
	Operations:
	State Appropriation	$194,000
	Tuition and Fees	4,263,000
	Other	(139,000)

	Sub-Total - Operations	4,318,000

	Plant Funds:
	State Appropriation	0
	Other Income to Cover Debt Services	2,103,000
	Renewal and Replacement	(111,000)

	Sub-Total Plant Funds	1,992,000

TOTAL - INCOME CHANGES		$6,310,000

SCHEDULES INCLUDED IN THE RESOLUTIONS FOR APPROVAL
OF THE 2008-09 OPERATING BUDGET, TAB A

     Schedule I provides a summary of the proposed total University budget for 2008-09. Amounts shown for restricted funds are estimates, which are included to provide a complete picture of the total University budget. Actual restricted funds amounts will depend on continuing receipt of grants and contracts, and may be either higher or lower than estimated.

     Total University general funds expenditures, including the College of Medicine, and the Pennsylvania College of Technology are shown on Schedule II, and Schedule III shows corresponding estimated general funds income.

     Schedule IV shows the total proposed expenditures for the College of Medicine, and Schedule V presents estimated College of Medicine income.

     Footnotes to Schedules I through V in Tab A provide additional explanation of the proposed expense and income changes.

Return to Table of Contents

Academic Salary Information



TABLE 7A THE PENNSYLVANIA COLLEGE OF TECHNOLOGY 2008-09 TOTAL OPERATING BUDGET


	2007-08 Adjusted Budget	Changes	2008-09 Budget

General Funds	$87,804,000	$6,310,000	$94,114,000

Restricted Funds	26,168,000	(3,745,000)	22,423,000

Auxiliary Enterprises	20,075,000	2,428,000	22,503,000

TOTAL	$134,047,000	$4,993,000	$139,040,000