Old Main, the administration building on the campus of Penn State University.
As Pa. budget uncertainty continues, a Penn State contingency plan would delay spending for ‘attracting and retaining the best staff’
The 2023-24 fiscal year is well underway, but Penn State, and the other state-related universities are still waiting to find out how much state support they’ll be getting. According to the university, if that state funding remains flat, it could have an impact on university spending, including efforts to attract and retain staff.
Pennsylvania Governor Josh Shapiro has proposed giving Penn State a 7.1% increase in funding for the current budget year, and the university says it has built that additional $17.2 million into its 2023-24 budget planning. But legislation to fund Penn State and the other state-related universities in Pennsylvania has not gotten approval in the General Assembly, where differences about it remain unsettled.
Penn State’s 2023-24 budget includes funding for employee pay raises — 3% for units to give merit-based increases. But the university put those raises on hold while it waits for its state appropriations.
A university spokeswoman said, in part, that if state funding to the university is flat there is “a contingency in place to delay critical spending in other areas, including on efforts important to attracting and retaining the best staff.”
Here’s the full email statement from Penn State spokeswoman Lisa Powers:
“Penn State is assuming a 7.1% appropriation increase for 2023-24, based on the funding proposed by Gov. Josh Shapiro. This amounts to a $17.2 million annual increase, which the university has built into its budget planning. If the university is flat-funded for a fourth consecutive year, there is a contingency in place to delay critical spending in other areas, including on efforts important to attracting and retaining the best staff, while shielding students and the university’s tuition rates from additional impacts.”
The state Senate and House are scheduled to return later this month.