Pa. budget gives performancebased boost to Pitt, Penn State

A $10 million pot is being distributed to state-related schools.

The state budget approved Sunday includes almost $2.7 million in new performance-based funding for the University of Pittsburgh and more than $4 million for Penn State University.

The performance-based funding comes from a $10 million pool established by the General Assembly for state-related universities, including Pitt, Penn State and Temple.

Allocations are based on factors including in-state student enrollment, graduation rates, improved college affordability and high-priority occupation degree production.

Gov. Josh Shapiro had originally proposed $30 million for the new fund.

State funding for Pitt, Penn State and Temple had remained flat since the 2019-20 school year.

The universities advocated for the performance-based funding model, citing the flat state appropriations despite increasing inflation.

Pitt Chancellor Joan Gabel, Penn State President Neeli Bendapudi and Temple President John Fry detailed their case in a June 20 commentary published in TribLive.

“With additional resources through performance-based funding, we can expand our impact and deliver an even greater return on the commonwealth’s investment,” they wrote. “Without funding this year for the state’s new performance-based funding model, we risk losing momentum — and with it, a key opportunity to strengthen the commonwealth’s workforce, economy and long-term competitiveness.”

There are four state-related schools. Lincoln University, a historically Black institution in Chester County, is the fourth state-related school but is not included in the performance- based funding plan.

Lincoln recieved $1.1 million in the state budget. Additionally, Temple recieved $500,000 for its University College, which aims to provide academic programming for non-traditional college students.

Meanwhile, the State System of Higher Education will receive $626.1 million, about a $5 million increase over last year, for its 10 universities including Slippery Rock, Pennsylvania Western and the Indiana University of Pennsylvania.

Funding for community colleges remained level. Those 15 schools recieved total operating funding of $277.34 million and capital funding of $54.61 million.

Pitt’s traditional support appropriation will remain $151.5 million, which goes toward the discount that instate students receive on tuition.

Pitt’s annual base tuition next school year is $21,595 for in-state students at the Oakland campus, a 3% increase from last year. Outof- state undergraduate tuition in Oakland is $43,328, a 4% increase.

“The University of Pittsburgh thanks the General Assembly and Gov. Josh Shapiro for their continued support and for their commitment to Pennsylvania’s students and workforce,” said Jared Stonesifer, a Pitt spokesman. “We look forward to strengthening our partnership with the legislature and the governor’s office as we work together to deliver on the commonwealth’s priorities.”

State funding is only a small piece of the schools’ overall budgets. Pitt’s budget for next year totals $3.28 billion, and Penn State’s is $10.2 billion.

Penn State’s total education appropriation in the state budget is more than $246 million.

The annual tuition rate for an in-state undergraduate student at Penn State’s main campus is $20,878.

“We appreciate the leadership of the General Assembly and Gov. Shapiro in creating a model that recognizes student achievement, institutional accountability and the critical role public universities play in meeting the commonwealth’s workforce and economic development goals,” Mike Stefan, Penn State’s vice president for government and community relations, said in a statement.

“However,” Stefan’s statement continued, “we will need to continue our broad advocacy efforts due to funding not keeping pace with rising costs.

“It is our hope that this is a first step toward more consistent funding increases in the years to come, which will be critical to our efforts to continue providing a world-class education while keeping costs as low as possible for students and families.”