Since my message of May 29, 2013, about IUP’s 2013–14
budget, we have information about our budget assumptions and a plan to move forward.
Here is what we now know:
- The amount appropriated to PASSHE from the
commonwealth budget was the same as in fiscal year 2012–2013. However,
because of IUP’s strong performance over the last several years, the amount of
appropriation allocated to IUP via the PASSHE allocation formula increased by
$321,524. That reflects well on your great work in recruiting and serving our
students. Thank you.
- The PASSHE Board of Governors approved a 3 percent increase
to undergraduate and graduate tuition rates, and a 3 percent increase for the undergraduate
technology fee.
- Based on the most recent data, we have revised
our estimate of the 2013–2014 student enrollment down from 15,000 to 14,800
students. The net effect of the approved increase in tuition, instructional
fee, and technology fee, combined with the decrease in projected enrollment,
result in a projected net increase in tuition and fee revenue of $41,574.
- This means that in total, IUP’s projected
revenues are up about 0.4 percent while IUP’s budgeted expenses are up about 0.9 percent. Personnel
expenses are up about 2.5 percent while operating expenses are down about 2.4 percent.
The bottom line is that the Fiscal Year 2013–2014 Education and General Budget
is about $1,077,000 short of balancing, even after the budget reductions
identified in May.
After consulting with Cabinet, I have decided to not
implement additional cuts for Fiscal Year 2013–2014. IUP will cover the
shortfall with one-time central resources for this year.
While this does not solve our budget shortfall, it reinforces
our need to plan for the long term instead of reacting to the short term. To
that end, we will spend this year working with the University Budget Advisory
Committee to develop a long-range (three-year) budget planning model.
Details of IUP’s Fiscal Year 2013-2014 Education and General Budget are
available online.
Michael Driscoll
President