Update: The full Board of Trustees on Friday approved tuition rates and the budget recommended by the finance committee
The Penn State Board of Trustees finance and business committee on Thursday recommended a tuition freeze for Pennsylvania resident undergraduate students as part of a $6.5 billion overall budget for 2018-19.
Tuition rates and the budget were approved by the full board at its meeting on Friday at Penn State Berks.
University officials previously said that if the Commonwealth came through with an appropriation increase for the new fiscal year, the school would hold tuition flat, meaning for lower division (freshman and sophomore) resident undergraduates at University Park, tuition will remain at $8,708 per semester. Penn State last froze tuition in 2015-16 and had aggregate increases of 1.76 percent and 2.45 percent the last two years
In the new state budget, Penn State received a 3 percent increase, or $6.9 million, in its general appropriation, bringing it to $237.35 million.
Tuition and fees now make up about 80 percent of Penn State’s general funds budget for education operations.
“With this additional state support, and through continued cost efficiencies, this proposed operating budget allows us to keep tuition flat for Pennsylvania students and their families, without compromising the quality of our academic programs,’ Penn State President Eric Barron said. ‘We appreciate the increased state support, and are thankful that champions of public higher education like Sen. [Jake] Corman and Gov. [Tom] Wolf continue to support investments in Penn State.”
Non-resident undergraduate students will see an aggregate increase of 3.54 percent. For lower division University Park undergrads, the increase will be 3.6 percent, or $588 per semester, bringing it to $16,910 per semester.
The technology fee will remain at $252 per semester for all full-time undergraduate students. The Student Initiated Fee — a combination of the former activities and facilities fees — will increase by $9 per semester to $267 at University Park and $4 per semester at other campuses, where it will range from $182 to $240 per semester.
In total, combined tuition and fees for the fall and spring semesters for a lower division Pennsylvania resident undergraduate at University Park will be $18,848. With an average room and board rate for 2018-19 of $5,530, the total cost of attendance would be $29,908.
The budget includes $31.4 million to fund contractual agreements with unionized employees, a 3 percent increase for graduate assistant stipends and a 2.5 percent pool for merit-based salary increases for faculty and staff.
It also features $24.9 million for facility and maintenance needs, as well as increases in utility and fuel costs.
“Even with zero tuition increase for resident students and with increased state support, we are continuing with our capital plan as we assumed we would,” Barron said. “This plan represents a critical investment in the University’s infrastructure, as it imperative that we provide current and future generations of students, faculty and staff with the world-class facilities necessary for continued success.”
The budget earmarks $12.8 million for projected increases to employee benefit costs, $12 million for strategic priorities and an increase of $4.5 million for student aid.
Penn State received a total of $327.4 million state appropriation for 2018-19. In addition to the general appropriation, Agricultural Research and Cooperative Extension received $53.9 million (3 percent increase), Pennsylvania College of Technology received $22.7 million (3 percent increase), and Penn State Hershey Medical Center funding remained flat at $13.4 million.
