State action to determine 2009-10 Penn State tuition rates

New Kensington, Pa. — Faced with the continuing state budget impasse and Gov. Ed Rendell's June 26 proposal to cut Penn State's appropriation by nearly $61 million, the University's Board of Trustees and administration made the unprecedented decision today (July 10) to approve two different tuition schedules. The one adopted will depend on the size and timing of the final appropriation determined by the Pennsylvania General Assembly and the governor.

In March, board members discussed plans to have the lowest tuition increase in modern history for 2009-10, in response to concerns about how the current economic situation has affected students and their families. The University did everything possible to achieve that goal through $50 million in cuts and savings, including freezing employee salaries and cutting an additional $20 million from University budgets. The first schedule reflects tuition rates from this conservatively budgeted option.

However, in June, Rendell announced a revised budget plan that would slash $60.9 million from Penn State's appropriation. It eliminated Penn State from the Commonwealth's application for federal stimulus funds. The second schedule sets tuition rates based on Rendell's proposal and requires an additional $17 million in expense reductions over and above the $50 million of reductions mentioned above.

"The uncertainty of our appropriation and our commitment to maintain the quality of the educational experience for our students have forced us to delay setting a final tuition rate with the hope that by July 17, the date that Penn State must finally set its fall tuition, we will have a clearer indication from the Commonwealth regarding our appropriations for the coming academic year," President Graham Spanier said. "We don't want to turn to a tuition increase that will be painful for many of our students and their families unless it is clear we absolutely are forced to do so."

The higher of two tuition schedules approved by the Board of Trustees reflects an increase of 4.9 percent at campuses other than University Park, and a 7.9 percent increase for out-of-state students at University Park and a 9.8 percent increase for in-state University Park students. However, if the Commonwealth is able to enact a budget by July 17 that includes appropriations for Penn State at the original 2008-09 level, then the Board of Trustees has authorized the University administration to implement the 2009-10 tuition increase at earlier planned levels of 3.9 percent for all students at campuses other than University Park, 3.7 percent for out-of-state students enrolled at University Park and 4.5 percent for in-state University Park students.

"If the state budget impasse continues beyond the date when fall tuition rates need to be set, but state officials subsequently implement a budget at a level more favorable than the governor's current proposal — and if this occurs before Nov. 9, when spring tuition bills need to be processed — we will implement a mid-year reduction in tuition reflecting the appropriation and budget situation at that time," Spanier said.

The president also indicated that University officials will attempt to minimize the tuition increase for the following academic year as well.

The first tuition scenario results in the following tuition changes:

• A 4.5 percent tuition increase, or $295 per semester, for lower-division University Park students residing in Pennsylvania, and a 3.7 percent tuition increase, or $443 per semester, for out-of-state students;

• A 3.9 percent tuition increase for all lower-division Commonwealth Campus students, which translates to $226 per semester for in-state students at the Altoona, Berks, Erie and Harrisburg campuses, and $217 per semester for in-state students at all other campuses.

• A 5.9 percent tuition increase, or $924 per semester, for all students at the Dickinson School of Law.

The second scenario, impacted by severe funding cuts proposed by Gov. Rendell, would result in the following tuition changes:

• A 9.8 percent tuition increase, or $640 per semester, for lower-division University Park students residing in Pennsylvania, and a 7.9 percent tuition increase, or $960 per semester for out-of-state students;

• A 4.9 percent tuition increase for all lower-division in-state Commonwealth Campus students, which translates to $284 per semester for at the Altoona, Berks, Erie and Harrisburg campuses, and $272 per semester for similar students at all other campuses.

• A 7.7 percent tuition increase, or $1,200 per semester, for all students at the Dickinson School of Law.

Regardless of the appropriations outcome, medical students at the College of Medicine in Hershey will see a 3 percent increase, or an increase of $1,036 for Pennsylvania resident students and $1,374 for non-resident students.

For either scenario, the current per-semester Information Technology Fee will be increased $8 for 2009-10 for all full-time students. The Student Activity Fee will be increased by $2 per semester at University Park; no change in this fee will occur at Commonwealth Campuses, The Dickinson School of Law at Carlisle or the College of Medicine.

The Student Facilities Fee will be increased $50 per semester at University Park, as decided at the May 2008 Board of Trustees meeting.

For further clarification about Penn State's 2009-10 budget and tuition, please refer to the online question-and-answer information.