Penn State’s 2017-18 Appropriation Request



2017-18 Budget Plan andState Appropriation RequestBoard of TrusteesCommittee on Finance, Business, and Capital PlanningAgenda Item 5.D.3September 16, 2016Penn State’s 2017-18 Appropriation RequestPresident’s StatementPenn State’s 2017-18 appropriation request acknowledges the Commonwealth’s fiscal realities while requesting the additional funding necessary to hold base tuition for Pennsylvania resident undergraduates across all of Penn State’s campuses flat for the second time in three years. We are very grateful for the appropriation increases, both for the 2015-16 fiscal year and for 2016-17 that were made possible by the hard work of Governor Wolf and the General Assembly. The increase of $16.3 million in Penn State’s General Support appropriation over the last two years contributed significantly to the 2015-16 tuition freeze for Pennsylvania resident undergraduates and the very modest tuition increase effective Fall 2016. The Commonwealth’s role in providing affordable access to an education at Pennsylvania’s land-grant university has never been more important.Penn State’s appropriation includes two line items under the Department of Education, General Support and the Pennsylvania College of Technology. In addition, the appropriation for the Agricultural College Land Scrip Fund that supports Agricultural Research and Cooperative Extension is appropriated through the Department of Agriculture while support for the Milton S. Hershey Medical Center is provided through the Department of Human Services from state and federal medical assistance funding. The purpose, use, and how the funds provide benefits to the citizenry of the Commonwealth are summarized in the following sections of the President’s Statement. A description of efforts to limit increases to tuition and fees through a combination of quantifiable budget savings and actions that slow the rate of increase or use resources more efficiently is also provided. GENERAL SUPPORTThe General Support appropriation both offsets the cost of tuition for Pennsylvania residents and supplements the University’s efforts to address access and affordability. Commonwealth support enables the university to provide a tuition subsidy for Pennsylvania resident students in excess of the per student equivalent. The General Support appropriation is also a critical factor in our ongoing efforts to develop the state’s economy and create jobs for our students as well as the citizens of the Commonwealth.The efforts made possible by the General Support appropriation to address access and affordability and to promote job creation, economic development and student career success are summarized below. The 2017-18 budget plan proposes an 11 percent increase of $25.3 million in the state’s investment in Penn State’s General Support appropriation. Access and AffordabilityTo fully realize Penn State’s land-grant mission, we need to keep a Penn State education accessible and affordable for the working families of Pennsylvania. The recently launched Enhanced Education Pathways initiatives will build on our more traditional need-based student programs to provide the highest quality education at a cost that ensures access for our citizens. It targets four key areas:Increase retention and graduationDecrease total cost of a degree (time to degree is key)Decrease rate of borrowingDecrease attrition due to finances - need-based students take longer to graduate, have lower retention rates and higher loan rates. Tuition continues to be among our most pressing concerns, and with the partnership of the legislature and the support of Governor Wolf, we hope to continue to keep our tuition increases as low as practically possible. In addition, we have launched and are piloting the following programs:Pathway to Success - Summer Start (PaSSS): This provides “at risk” students on nine campuses opportunities to earn credits, while earning money by working in on-campus jobs during the summer and fall. Student Transitional Experiences Program (STEP): The goal is to reduce time to graduation for students who transition from the Commonwealth Campuses to University Park by offering mentoring, on-campus employment, career preparation and financial incentives for participation. Financial Literacy: This is designed to decrease the borrowing rate, especially lifestyle borrowing, while increasing financial literacy. Online course opportunities: A collaboration between World Campus and Commonwealth Campuses is designed to increase access to highly enrolled ‘entrance to major’ classes that are offered intermittently. One-stop advising for student needs: We are developing more efficient models for one-stop advising for student needs: academics, financial aid, internships, career services, tutoring and study abroad.Direct scholarships ($5 million increase in Provost and Chancellor Awards): Additional scholarships have been directed to students with need, and Penn State is participating in additional programs including the Raise.me Micro-scholarship Program. Assessment/incentives - high GPA and high credits but not graduated: A sizable population fits this profile, and we are working to assess the reasons and consider incentives to help these student complete their degrees.In addition to these efforts and others, generating philanthropic support for scholarships is a core institutional priority. Due to large numbers of need-based students and socioeconomic challenges in communities throughout the Commonwealth, Penn State’s ability to educate all students for a life of learning and productive careers is crucial.We hope that our efforts will open the door for more students to earn a Penn State education, and we look forward to working with the General Assembly to help all of the families of Pennsylvania do so, regardless of socioeconomic status. Job Creation, Economic Development, Student Career SuccessPenn State is living the land-grant mission in the 21st century through our commitment to job creation, economic development and student career success. In January 2015 we launched Invent Penn State, which included a $30 million one-time investment and annual funding of more than $5 million. Over the last year and a half, Invent Penn State has spread across the state to create dynamic hubs on our Commonwealth Campuses and in the surrounding communities. By leveraging Penn State’s size and broad research strengths, our aim is to accelerate the transfer of new ideas into useful products and processes that encompass a wide range of industries including: energy, food security, environmental protection, health care, manufacturing, educational technologies, medical devices and pharmaceuticals. We are tackling this goal by focusing on four main areas:Transforming our ability to promote economic development (internal)Increasing external visibility, especially for intellectual propertyCreating capacity and capability to develop startups and to attract companies (building entrepreneurial ecosystems around our campuses)Enhancing student entrepreneurship and an already strong path to student career success. To this end, Penn State has developed a number of programs and partnerships. A few examples of the many activities underway include: Fund for Innovation: $1.5 million investment to advance the commercialization of university innovations. In 2014, five colleges participated; in 2015, the number of participating colleges increased to seven, and interest continues to grow.Investment in the Invent Penn State Team: An experienced team of professionals with research and industry ties is strengthening connections with the business community and creating new opportunities.Showcase University Technology and IP: Penn State sponsors or coordinates several competitions for startup funding, and on October 6-7, 2016 will host the first Venture and IP Conference. Attendees will have exclusive opportunities to see disruptive innovations from Penn State’s world-class faculty, students and alumni. New and Robust Online Presence: Invent Penn State has an interactive website to serve its many constituencies, and a new website for Penn State-affiliated investor opportunities is under development.Multi-year $50,000 Seed Grants: To promote entrepreneurship in the communities surrounding Penn State campuses, we have awarded $50,000 seed grants to 12 Commonwealth Campuses: Wilkes-Barre, Lehigh Valley, Behrend, New Kensington, Abington, Harrisburg, Altoona, Berks, Great Valley, Schuylkill, Shenango, and York. These locations are part of the 20 Penn State incubators and accelerators across the Commonwealth.Building Strategic Partnerships with Industry: Penn State has developed new resources and processes for engaging with industry and connecting companies with our research faculty. From 100+ individual company interactions to nine full-day research forums to four university-wide “challenges” on behalf of companies, multiple new strategic partnerships are being built. Strengthening the Undergraduate Student Entrepreneurship Ecosystem: A coordinated effort puts the student in the center of periodic competitions, events and funding; investor, mentor and alumni networks; education and support programs; incubators, accelerators, co-working spaces and tools; and student groups. Examples of programming for students include: IST StartUp Week, the Penn State Idea Pitch Competition and the annual Summer Founders Program.New Entrepreneurship Academic Opportunities: Penn State now offers an Intercollege Minor in Entrepreneurship and Innovation that involves nine colleges and three campuses, with more in development. In addition, the Smeal College of Business now offers a new B.S. in Corporate Innovation and Entrepreneurship, as well as a new Business Fundamentals Certificate that allows non-business undergraduates to develop fundamental business skills in finance, management, marketing and supply chain management.We believe that this is what it means to be a modern land grant university that combines excellence in teaching, research and service. It also embodies our mission of ensuring access to a top-notch education and improving the quality of life for everyone in the state, and society in general. Pennsylvania College of TechnologyThe Pennsylvania College of Technology located in Williamsport, PA is a national leader in applied technology education and a Penn State affiliate. The 2017-18 appropriation request for Penn College proposes an 11 percent increase of $2.2 million. The increase in state appropriations will be used to support the varied technological needs of high-demand programs, including the digital radiographic room, building automation, simulation mannequins, and the creation of a maker’s space to support the innovation work of faculty and students.Agricultural Research and Cooperative Extension The 2017-18 budget plan proposes an 11 percent increase of $5.7 million in the state’s investment in Agricultural Research and Cooperative Extension, which would fully restore the support for these activities to the amount provided by the Commonwealth in 2010-11.Approximately $2 million is needed to support inflationary operating increases for these activities. The remaining funds would allow the College of Agricultural Sciences to rebuild capacity and invest in several high priority issues and address immediate threats facing Pennsylvania including: Pennsylvania farmers and food processors have communicated critical research and educational needs as they seek to comply with new regulations under the complex Food Safety Modernization Act (FSMA). FSMA is the most far-reaching reform of food safety laws in more than 70 years and threatens the viability of agricultural businesses. FSMA places significant compliance pressures on Pennsylvania growers, packers, distributors, and food and feed manufacturers and will require extensive research and training to allow businesses to stay competitive and solvent.?The College is working with the Pennsylvania Department of Agriculture, Pennsylvania Department of Environmental Protection, the U.S. Environmental Protection Agency, and Pennsylvania agriculture groups and nonprofits to facilitate collaboration to generate solutions to water quality challenges in Pennsylvania. State and federal agencies have placed particular political and financial pressure on agriculture, however urban stormwater is also a major contributor. There are significant research, educational, and technical on-the-ground training needs to assist agriculture and Pennsylvania communities in meeting EPA water quality metrics for nutrient management, including both stormwater and agricultural runoff. The College is recruiting faculty and Extension staff for this problem, but remains woefully underfunded to adequately address these issues.?Invasive plants, insects, and diseases continue to challenge Pennsylvania agriculture and threaten Pennsylvania’s economy. Zika is spreading in the United States and raising human health concerns, Avian influenza continues to be a threat to the poultry and egg industry, the Emerald Ash Borer is eliminating ash trees from Pennsylvanian forests, and the spotted lanternfly, which was recently discovered for the first time in the United States in Berks County, threatens the landscape, fruit, and forest products industries in Pennsylvania. Investments in biosecurity research and education around best practices is critical to help protect Pennsylvania from these and many other invasive pests.Opiate and other addictions are an increasingly serious problem for urban Pennsylvania, but generally even more severe for rural counties. Using its networks in all 67 counties, including 4-H, Penn State Extension is a major provider of advice and education for chronic health issues including obesity and diabetes, particularly in rural areas. Extension programs with peer-reviewed, documented success, including PROSPER (Promoting School-community-university Partnerships to Enhance Resilience), the 4-H Health Rocks program, and the Clearinghouse for Military Families, reduce risky behaviors related to substance use with strong cost-benefit ratios. Extension is well-placed to use additional funding for an even greater impact to help the Commonwealth address this growing need.Penn State Extension is investing in new technologies to meet the changing needs and expectations of our customers and provide for real-time collaboration across our teams of experts located around the Commonwealth. These investments in Pennsylvania will provide a diverse portfolio of non-credit, online educational opportunities for all Pennsylvanians; real-time communications, alerts, and education for our customers; and increasing accessibility to our teams of experts and programs.?Milton S. Hershey Medical CenterMedical Assistance funds appropriated to the Milton S. Hershey Medical Center through the Pennsylvania Department of Human Services enable citizens of the Commonwealth without the ability to pay to receive medical care at one of the nation’s premier academic medical centers. Since 2013-14, part of this funding has been designated to support the ongoing development of the Regional Medical Campus at University Park. With a focus on the preparation of medical students for careers in primary care and rural medicine, this program addresses the healthcare needs of both the Centre County region and the entire northern tier of Pennsylvania. This funding is used to facilitate contributions by, and collaborations with, the College of Medicine’s Department of Public Health Sciences which supports the analysis of health care needs of the Commonwealth and the development of clinically-integrated networks to meet them. This funding supports innovative programs that will enhance the overall health and wellness of Pennsylvanians particularly those in rural areas who have historically had to drive long distances to access providers for some or all of their health care needs.Cost Containment Efforts For several decades, Penn State has cut and reallocated funds within the budget rather than pass along all of the cost increases to our students or to the citizens of the Commonwealth. Penn State continues to strive for efficiencies in our operations in ways that support and advance the quality of a Penn State education. Our budget plan for 2017-18 sets a very aggressive target for budget reallocations as one of the major sources to fund the priorities and mandates in the plan. The target is $26.3 million, not all of which has been identified. We will work diligently toward that goal.Efforts to limit increases to tuition and fees by implementing administrative cost efficiencies, programs to extract budget savings, and to slow the rate of growth in our major cost drivers are an integral part of our budget planning. In support of access and affordability, it is imperative for us to contain costs while ensuring the quality of our academic and support programs and to use technology and other strategies to adapt our business processes to achieve operational efficiencies. Annual requirements for every unit to identify recurring savings and efficiencies created an environment in which leaders continuously evaluate opportunities to reduce costs. These opportunities have led to the discontinuation of academic programs and majors, the merger of academic departments, and shared administrative positions by campuses.Targeted expense reduction initiatives have been implemented within specific units that needed to make swift budget adjustments in response to enrollment challenges or direct appropriation reductions. A voluntary retirement incentive program was offered to employees in the College of Agricultural Sciences and University Outreach in 2011-12 when state support for agricultural research and cooperative extension was cut by $10.5 million. Eight Commonwealth Campuses in western Pennsylvania and the Dickinson School of Law also recently offered a voluntary retirement program as part of a plan to bring expenses in line with lower tuition revenue. On August 31, 2016, the University announced a broader voluntary retirement incentive program as part of our strategic resource investment initiatives and to lower institutional costs through attrition.While cost reduction, cost containment and efficiency initiatives have been an integral part of Penn State’s budget process for more than two decades. The summary below focuses on reallocations in the last decade and more recent cost containment and efficiency initiatives.Quantifiable Savings Used to Balance Operating Budget IncreasesPenn State’s budget process incorporates systematic budget reallocations as a source to fund operating costs increases and strategic academic initiatives rather than relying solely on new revenue from tuition or appropriations. Below is a summary of the recurring resources that were extracted from institutional budgets since 2005 and used to fund the next year’s budget. $81 million in recurring expenses across all general funds units by replacing faculty and staff who retired or resigned with individuals at lower salaries, eliminating positions by consolidating responsibilities and eliminating lower priority functions, saving administrative costs by merging departments, and other efficiencies required by annual across-the-board budget reduction targets Restructured post-retirement health care financing to free up $58.5 million in the operating budget$31.1 million in funding that had been set aside over a period of years in anticipation of the spike in the employer contribution rate for the State Employees’ Retirement System and funds that could have been used for new initiatives but were used instead to reduce tuition increases$29.4 million of reductions in employee benefits budgets made possible by more strategic management of worker’s compensation, dependent verification for health care and the employee dependent grant-in-aid, elimination of a graduate grant-in-aid program for employees not located at University Park, changes in health care plan design, including deductibles, copays and the introduction of a qualified high deductible healthcare plan$23.2 million from budget cuts in finance and business units, the funds released by the retirement of debt, and increasing the required amount that auxiliary enterprises pay to reimburse the general funds budget for overhead and support services$16.9 million in budget reductions for Penn State’s online programs as part of a plan for the World Campus to become self-supporting$3.8 million in captured savings from various energy-use reduction programs$850,000 captured from eliminating the Science, Technology, and Society program, the Women in Science and Engineering program (it duplicated another program) and the Media Technology Support Services unit$466,000 from space consolidation by moving from leased space to university-owned spaceInitiatives that Slow the Rate of Cost Increases and use Current Resources more EfficientlyFor employees hired after January 1, 2010, both the vesting age and years of service for post-retirement health care were increased and the program was changed from a defined benefit to a defined contribution approach – savings to accrue in the future with current reductions in the balance sheet liability for post-retirement health careCommodity purchasing savings generated through competitive bidding, negotiations, strategic purchasing (including reverse auctions), utilization of consortium purchasing contracts, and electronic procurement processes - $22.2 millionEnergy Conservation Program – initiatives such as Continuous Commissioning, Energy Utility Management, and the Energy Savings Program that includes, for example, building weatherization and motion-sensor lighting - $8.7 millionCompetitive bidding for energy procurement resulted in price paid vs. market price annual savings of more than $9 million on coal, electricity, and natural gasSavings on information technology equipment, software, and implementation services realized through standardizing and aggregating purchases, competitive bidding and vendor negotiations - $13 millionA new classroom building was removed from the Capital Plan after a study revealed that better centralized management of classroom scheduling would solve a perceived shortage of classroom space at the University Park campus, avoiding the need to build and maintain a $55 million buildingInvestments in technology-enabled shared services to reduce the cost of processing routine human resources transactions coupled with the current multi-year initiative to transform the delivery of human resource services (the HR Business Processes Transformation) are anticipated to result in expense reductions through cost avoidance, redeployment of resources, productivity gains and cost savings Consolidation of Information Technology services for non-academic units and an initiative to share expertise across the university through an Information Technology Infrastructure Library will result in personnel cost savings, while increasing efficiencyEvaluation of supply-side strategies for health care, e.g., a single contract for lab services across the state is projected to save as much as $8 million annually for employees and the university’s self-funded health care program. A Health Care Advisory Committee, which includes faculty experts on health care delivery and the marketplace, benefits professionals, representatives of the University Faculty Senate, and budget and finance advisors, brings forward recommendations for redesign of both supply-side and demand-side strategies to lower employee and employer costs of health care offerings while maintaining the ability for Penn State to compete for talented faculty and staff.Concluding RemarksSince 1855, Penn State and the General Assembly have partnered to benefit families and communities across the Commonwealth. Penn State’s educational programs, research, and outreach will continue to make measurable and meaningful differences in the economic development of our communities, from local to global levels. Strengthened by our partnership with the Commonwealth, Penn State can drive job creation, economic development, and student career success all while ensuring that a Penn State education is within reach financially for Pennsylvania students with the ability and desire to attend.Penn State is fully committed to utilizing our financial resources in the most cost efficient manner to provide the highest quality educational experience to our students. The annual survey published in U.S. News and World Report’s American’s Best Colleges is one of the most widely followed publications for rankings of national doctoral universities in overall academic quality. Three important components of these rankings are: (1) academic reputation; (2) faculty resources – a constructed measure of faculty compensation, percent of faculty with a terminal degree, percent of full-time faculty, student/faculty ratio, and class size; and (3) financial resources – the average educational expenditures per student. Data from the 2016 report show the following:Only 3 of the top 50 national universities had a wider gap between its overall rankings of academic quality and faculty resources than did Penn StateIn this survey, 19 of the top 20 universities are private institutions, reflecting the greater weight given to institutional wealth as measured by endowment, spending per student, faculty salaries, and annual contributions from alumni and others. The highest-rated public institution, the University of California, Berkeley, is ranked number 20Penn State’s overall ranking is 47th among the top private and public doctoral universities in the nation. Only three other Big 10 public universities – Michigan, Wisconsin, and Illinois – are included in the top 50. Among public institutions only, Penn State ranks 14thPenn State’s rank for academic reputation is even higher than its overall ranking, in a tie for 36th. At the same time, Penn State ranks 102th in faculty resources, and 56th in financial resources. In fact, Penn State operates with fewer financial and faculty resources than most of our counterparts among the top 50 institutions.The large gap between Penn State’s high academic ranking and relatively lower rank in resources is a strong indicator of efficiency; it demonstrates that the University maintains high academic quality with fewer resources as compared to other universities with high academic quality.The methodology of most rankings strongly favors private universities, particularly those that are highly endowed and have far more financial resources to spend per student than the typical public institution. As Pennsylvania’s public land-grant institution, our access and affordability imperatives take priority over seeking ever higher levels of resources simply for the sake of improved rankings. However, the components of the rankings are useful as an indicator of the efficient delivery of very high academic quality. The rankings are also an important consideration for some employers who recruit our students and for many students and their families as they make the important decision about where to pursue higher education. Penn State is committed to continuing the cost-efficient delivery of our tripartite mission of teaching, research, and service with exceptional academic quality for the benefit of the citizens of Pennsylvania.We look forward to ongoing conversations with the Commonwealth about the enormous potential of increased investment in Penn State as a vehicle to advance the economic development agenda for Pennsylvania. Thank you for your support and consideration. Respectfully Submitted,Eric J. Barron, PresidentPenn State UniversityHighlights Of Penn State’s 2017-18Budget plan and Appropriation Request Appropriation RequestThe University is requesting a total appropriation of $350.5 million, representing an 11 percent increase in each of the following four line items.A $25.3 million increase in the Educational and General (E&G) or General Support line item.An increase in the amount of $5.7 million is requested for our programs in Agricultural Research and Cooperative Extension.Increased support of $2.2 million is included for the Pennsylvania College of Technology to build on recent increased investments from the Commonwealth to expand instructional capacity in the technical fields most in demand by students and Pennsylvania employers.Additional State and Federal Medical Assistance funding of $1.5 million also is included for the Penn State Milton S. Hershey Medical Center.TuitionIf the Commonwealth is able to provide the requested appropriation, Penn State will not increase base tuition for Pennsylvania resident undergraduate students for the second time in three years. Tuition for graduate students and non-resident students would increase by an aggregate of 2.99 percent.Basic Operating CostsBenefits – Respond to the increasing employer contribution rate for the State Employees’ Retirement System (SERS) and an estimated increase in health care.Facilities – Provide for facilities cost increases, including increasing fuel and utilities costs, the maintenance and operation of new facilities, the necessary additional funding to address asset preservation of an aging physical plant, and to support the capital needs related to major renewals and replacements of facilities across our multiple locations.Faculty and Staff Compensation – Provide a modest pool of funds for merit-based inflationary increases and to address targeted market and equity concerns as well as the funds necessary to fulfill contractual obligations.Details Of Penn State’s 2017-18Budget Plan and Appropriation RequestThe University’s proposed budget plan for 2017-18 reflects progress toward Governor Wolf’s stated goal to restore funding to Pennsylvania institutions of higher education to the level appropriated prior to the major cuts in 2011-12. If the Commonwealth is able to provide the requested level of support, Penn State will freeze base tuition for Pennsylvania resident undergraduate students for the second time in three years.Table 1 summarizes the proposed budget changes for the Educational and General budget (General Support), Agricultural Research and Cooperative Extension, the College of Medicine at the Milton S. Hershey Medical Center, and the Pennsylvania College of Technology.Penn State’s request for an appropriation increase of $34.7 million for 2017-18 is summarized on Table 2. Details of the University’s proposed budget plan and appropriation request are discussed below.Expense ChangesBenefits and Insurances: The University’s budget plan includes projected increases of $28.4 million for benefits cost increases. This includes increases for health care and retirement. Penn College is also projecting an increase in property and liability insurances of $500,000 for 2017-18.Facilities: A total of $13.0 million is projected for facilities cost increases. Included are funds for the maintenance and operation of new or newly renovated facilities, fuel and utilities increases, deferred maintenance projects, and the continuation of the University’s capital improvement program.Strategic Priorities: The 2017-18 budget plan includes funding for the most important strategic priorities of the university. Investments will be targeted in areas described in the President’s Statement that will focus on access and affordability and economic development, job creation, and student career success. Internal Budget Reductions and Other Cost Savings Initiatives: The budget plan sets a target for more than $26 million in expense reductions. This includes funds available from ongoing efforts to bend the cost curve for our health care programs, assessing our auxiliary enterprises a higher rate for the support they receive from administrative support units, continuing to reduce the subsidy for the World Campus, and initiatives to require revenue generating units to reduce their operating subsidies. These reductions will be made from the recurring expense base and will lower budgeted expenses in every year going forward.Student Aid: As just one among multiple strategies to address access and affordability, our plan proposes adding $2.0 million for need-based student aid, bringing the total of permanently budgeted funds to $57.0 million. These funds will be used to leverage additional private donations for student support.Faculty and Staff Salary Compensation: Penn State operates in an extremely competitive environment for faculty and staff. As keepers, creators, and transmitters of knowledge, the best way for us to continue to help Pennsylvania’s communities is to maintain excellence across those activities that are core to our missions. We compete with other great institutions to bring in the best talent. Dozens of our faculty are recruited by other universities every year. We strive to recruit and retain the very best faculty and staff in a fiscally responsible manner. The budget plan for 2017-18 includes $34.8 million for salary adjustments and related employee benefits. This projected amount includes a 2.5 percent salary pool to provide funding for inflationary adjustments that would be awarded primarily based on merit and address market and equity situations.Agricultural Research and Cooperative ExtensionThe College of Agricultural Sciences relies on the 150-year old land-grant partnership of federal, state, and county governments as the foundation for agricultural research and statewide Extension programs, which in Pennsylvania and across the United States have for decades increasingly included rural problems that parallel those in urban centers.? The federal, state, and county funds that support Agricultural Research and Cooperative Extension are not supplemented with student tuition.? The state appropriation provides the required matching funds that allow Penn State to access Federal Agricultural Research appropriations and support from Pennsylvania’s counties for Cooperative Extension.? Now more than ever, funding for agricultural research and support for the state’s Cooperative Extension network is an investment that ensures that the agriculture industry will be able to continue to advance this important sector of the economy and to safeguard Pennsylvania’s human and natural resources.Income ChangesThe University’s budget plan includes projected income increases of $65.8 million. This amount includes $28.2 million from projected tuition and fee changes. Penn State students who are Pennsylvania resident undergraduates would not see an increase in base tuition rates for the second time in three years.The University is requesting an appropriation increase of $33.3 million (see Table 2). Of this amount, $25.3 million is for Penn State’s General Support line. Also, as part of the direct appropriation, an additional $2.2 million is requested for the Pennsylvania College of Technology. An increase in the amount of $5.7 million is included for our programs in Agricultural Research and Cooperative Extension funded through the Agricultural College Land Scrip Fund.An additional $1.5 million is requested in the State and Federal Medical Assistance funding provided to the Milton S. Hershey Medical Center through the Pennsylvania Department of Human Services.The University is projecting an additional $3.3 million in other income primarily from increases in the facilities and administration cost recovery from grants and contracts.Table 1Summary of Proposed Changes2017-18 Budget Plan and State Appropriation Request($ in thousands)Table 2Summary of State Appropriation ($ in thousands) ................
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