Table 1 Summary of Proposed Changes 2009-10 Budget Plan and State Appropriation Request

Educational   Ag. Research   College   PA                 and   &   of   College of     EXPENSE CHANGES: General   Coop. Ext.   Medicine   Technology   Total   Basic Operating Costs:                       Faculty and Staff Salary                         Adjustments   $34,818,000   $1,490,000   $1,412,000   $2,417,000   $40,137,000     Benefits and Insurances 22,210,000   896,000   615,000   2,071,000   25,792,000     Facilities       15,902,000               15,902,000     Strategic Initiatives                          and Other Program Needs 10,000,000   1,499,000           11,499,000     Libraries, Computing                         and Telecommunications 1,100,000               1,100,000     Internal Budget Reductions (7,244,000)               (7,244,000)     Need-Based Student Aid 1,000,000               1,000,000     Student Activities 621,000               621,000     Student Facilities 3,978,000               3,978,000     Penn College Debt Service             96,000   96,000 TOTAL EXPENSE CHANGES $82,385,000   $3,885,000   $2,027,000   $4,584,000   $92,881,000 INCOME CHANGES:                     Tuition & Fees     $58,292,000       $1,038,000   $3,579,000   $62,909,000   Other Income     5,500,000       989,000       6,489,000   Requested Appropriation Increase* 18,593,000   3,885,000       1,005,000   23,483,000 TOTAL INCOME CHANGES $82,385,000   $3,885,000   $2,027,000   $4,584,000   $92,881,000

*The University also is requesting an additional increase of $1,000,000 in the State and Federal Medical Assistance funding provided to the Milton S. Hershey Medical Center through the Pennsylvania Department of Public Welfare. Penn State's overall request for additional Commonwealth support for 2009-10 totals $24,483,000.