Pitt Trustees' Budget Committee Sets University's FY 2010 Budget Contingent Upon Ultimate Passage of Commonwealth Appropriation

PITTSBURGH-The University of Pittsburgh Board of Trustees' Budget Committee today set a $1.73 billion operating budget for the 2010 fiscal year that is contingent upon the ultimate passage of the University's expected $185.4 million Commonwealth appropriation for FY 2010.

"Built around the realities of a difficult economic environment, the new budget has been designed to maintain the University's momentum by continuing to attract the highest-achieving entering student classes in Pitt history, providing necessary increased financial aid support, making targeted investments in further enhancing the quality of academic programs, undertaking new groundbreaking research initiatives, and upgrading infrastructure," said Pitt Chancellor Mark A. Nordenberg.

"As I have previously had occasion to note, we at Pitt are particularly mindful of the difficulties faced by our students and their families during this challenging period of economic stress nationwide and especially in Pennsylvania," the chancellor continued. "That is why, as announced in July, we made no tuition increases at our regional campuses and limited our tuition increases on our Pittsburgh campus to 4 percent for in-state students and 2.5 percent for out-of-state students.

"Given these 0-to-4-percent tuition increases, $5.7 million in additional financial aid, and $1.7 million in additional funding for Pitt-based Perkins loans, among other factors, this new budget could only be made to work by freezing salaries for faculty and staff at FY 2009 levels, continuing for a second year the freeze on officer salaries at FY 2008 levels, and requiring $8.3 million in continuing budget reductions. Through shared sacrifices, we are safeguarding the integrity of this great university by focusing our budget on our core values-our students, our educational mission, and pathbreaking research," the chancellor concluded.

The expected FY 2010 Commonwealth appropriation represents a total of $177.9 million, the same amount the University received from the Commonwealth for FY 2009, plus $7.5 million in federal stimulus money.

"Since this expected FY 2010 appropriation support includes approximately $10 million of federal Medicare money for the University's medical-related line items, the actual dollars coming from the Commonwealth unadjusted for inflation are at the same level they were for FY 2000, at the beginning of the decade," noted Arthur G. Ramicone, Pitt vice chancellor for budget and controller.

The capital budget set by the Budget Committee totals $179 million, including $86.2.million from the Commonwealth.

"The Commonwealth dollars are elevated because of a generous commitment of $50 million related to an addition to and renovation of Salk Hall," commented Ramicone. "The University dollars are directed at construction projects on the Bradford and Johnstown campuses, together with preservation projects on the Pittsburgh campus and at all four regional campuses," he added.

Had the Commonwealth appropriation been acted upon in July, Ramicone stated, the University would have received more than $75 million by this time instead of having to draw upon its own cash reserves.

As was noted in the July 2009 announcement of the University's tuition rates for FY 2010, Pitt's contributions to the Western Pennsylvania economy include:

o University-related spending in the local economy exceeding $1.74 billion;

o Some $1.3 billion in personal income generated from nearly 33,800 Pitt-supported jobs;

o More than $145 million going to local communities, including sales, wage, and real estate taxes;

o Pitt faculty members attracting more than $650 million in research expenditures, supporting more than 23,100 jobs;

o Pitt's $140.7 million average annual investment on construction from FY 2006 through FY 2008, generating more than 1,300 jobs in construction and related industries; and

o From 2003 to 2008, Pitt technologies forming the basis of 42 start-up companies.

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12/15/09/amm