Penn College's 2002-03 Budget Approved by Board of Directors

Pennsylvania College of Technology's Board of Directors onThursday approved an Operating Budget of $60,274,868 and established tuition rates and related fees for the upcoming 2002-03 academic year.

The Operating Budget is an increase of $4,409,447 (7.9 percent) over the current year. However, tuition increases will be held at 3.9 percent for Pennsylvania residents and 4 percent for out-of-state students.

Penn College President Dr. Davie Jane Gilmour said that, in order to balance the budget, the College cut nearly $425,000 that had been earmarked for instructional equipment. Similar cuts were made from corporate-relations funds, which support events and activities in the community, to reduce $800,000 from the overall budget, she said.

"We are pleased to be able to craft an Operating Budget that keeps tuition and fees as low as possible for Penn College students," she said. "While we are not able to allocate as much as we would like for instructional equipment, we will be aggressive in pursuing grant funding that is available for such purposes."

Dr. Gilmour praised the school deans and other cost-center administrators for holding the line on spending in light of the reduced state appropriation and rising costs for such expenses as utilities and insurance. "The budgets we received were reasonable and responsible," the president said.

In establishing the 2002-03 Operating Budget, the College projected the regular state appropriation will be $12,288,000 a decrease of $259,000 (2 percent) from the current budget.

The appropriation for the coming year is expected to be 5 percent less than the amount originally budgeted at the outset of 2001-02; the state reduced the current year's appropriations of all state-related institutions and other state programs during the course of the year.

2002-03 Tuition and Fees Students who are Pennsylvania residents will pay $242 per credit hour for tuition - $9 (or 3.9 percent) more than the current year. Fees* assessed on a per-credit-hour basis will increase overall costs another $9 per credit hour. The total tuition and fees for an in-state student carrying a typical 15-credit-hour-per-semester course load for two semesters will be $8,400 ($280 per credit).

The tuition for out-of-state students will increase $12 per credit hour (4 percent) to $315. The additional $9-per-credit-hour increase in fees will bring the total increase for nonresident students to $21 per credit hour. For an out-of-state student carrying a 15-credit-hour-per-semester course load over two semesters, tuition and fees will total $10,590 ($353 per credit hour).

This is the lowest tuition increase for Penn College students in the last three years. Tuition increases over that period have been: 2001-02, 4.8 percent; 2000-01, 4.5 percent; and 1999-2000, 4 percent.

Dr. Gilmour reminded the Board that, to assist students with their education expenses, the College and its Foundation awarded 234 scholarships totaling $277,969 in 2001-02. She also noted that Penn College students received an estimated $38.5 million in financial aid in Fiscal Year 2002 from a variety of federal, state and local sources.

"It is important that individuals considering Penn College know that we will work with them to find financial assistance that can help them meet the cost of their education," the president said.

Other Budget Information The 2002-03 budget projects a 4.5-percent enrollment increase over Fall 2001, when enrollment was 5,538 students.

Overall, the College's Unrestricted Current Funds Budget, which includes the $60 million-plus Operating Budget plus separate budgets for Auxiliary operations, Unrestricted Scholarships, Gifts and Donations, Use of College Resources, Parking Permits, and Renewal and Replacements, is $73,013,248 - an increase of $4,848,688 (7.1 percent) over 2001-02.

Revenue-generating Auxiliary Fund budgets for 2002-03 total $11,968,880. They are: Food Services, $2,770,000; the Children's Learning Center, $293,901; the College Store, $3,852,582; the Technology Transfer Center, $447,830; Student Activities, $889,429; and Housing, $3,715,138.

Other Unrestricted Current Fund Budgets (distinct from the Operating and Auxiliary budgets) total $769,500. They are: Unrestricted Scholarships, $192,500; Gifts and Donations, $200,000; Use of College Resources, $25,000; Parking Permit Fund, $290,000; and Renewal and Replacement, $62,000.

The Restricted Current Fund which accounts for grants, contracts and restricted donations for which outside parties (such as governmental agencies) direct the use of the money will be $8,136,100, an increase of $527,600 (6.9 percent).

The Debt Service Fund, which accounts for money received and expended for the College's debt obligations from its outstanding bond issues, will be $7,784,636, an increase of $1,885,998 (32 percent) to cover costs associated with bonds issued for capital projects, such as construction and major renovation.

Note: In the event that the state appropriation for Penn College changes substantially, a special session of the Board could be called to review the 2002-03 budget.

* NOTES ON FEES:Computer Fee ($10 per credit hour) used for upgrading, expanding and supporting academic computing resources.Laboratory Instruction Fee ($19 per lab hour) used to offset the cost of laboratory instruction, where, often, student-to-faculty ratios are 10:1 or less.Capital Fee ($24 per credit hour) the 2002-03 increase is designated for debt service, as approved by the Board of Directors.Student Activity Fee ($4 per credit hour) funds student activities, events and organizations.