Since my message of May 29, 2013, about ÑÇÉ«Ó°¿â's 2013–14 budget, we have information about our budget assumptions and a plan to move forward.

Here is what we now know:

  • The amount appropriated to PASSHE from the commonwealth budget was the same as in fiscal year 2012–2013. However, because of ÑÇÉ«Ó°¿â's strong performance over the last several years, the amount of appropriation allocated to ÑÇÉ«Ó°¿â via the PASSHE allocation formula increased by $321,524. That reflects well on your great work in recruiting and serving our students. Thank you.
  • The PASSHE Board of Governors approved a 3 percent increase to undergraduate and graduate tuition rates, and a 3 percent increase for the undergraduate technology fee.
  • Based on the most recent data, we have revised our estimate of the 2013–2014 student enrollment down from 15,000 to 14,800 students. The net effect of the approved increase in tuition, instructional fee, and technology fee, combined with the decrease in projected enrollment, result in a projected net increase in tuition and fee revenue of $41,574.
  • This means that in total, ÑÇÉ«Ó°¿â's projected revenues are up about 0.4 percent while ÑÇÉ«Ó°¿â's budgeted expenses are up about 0.9 percent. Personnel expenses are up about 2.5 percent while operating expenses are down about 2.4 percent. The bottom line is that the Fiscal Year 2013–2014 Education and General Budget is about $1,077,000 short of balancing, even after the budget reductions identified in May.

After consulting with Cabinet, I have decided to not implement additional cuts for Fiscal Year 2013–2014. ÑÇÉ«Ó°¿â will cover the shortfall with one-time central resources for this year.

While this does not solve our budget shortfall, it reinforces our need to plan for the long term instead of reacting to the short term. To that end, we will spend this year working with the University Budget Advisory Committee to develop a long-range (three-year) budget planning model.

Details of ÑÇÉ«Ó°¿â's Fiscal Year 2013-2014 Education and General Budget are available online.

Michael Driscoll
President