Pitt, Penn State get flat state funding but optimistic toward future

The state budget passed last week signals flat appropriations to the University of Pittsburgh and Penn State, but officials at those colleges are encouraged by an approved plan that establishes and outlines the state’s first performance-based funding formula.

General support funding for Penn State holds at $242.1 million — the same over the past six years, according to the university.

Pitt’s general appropriation this year is $151.5 million, which is the same as last year, said spokesman Jared Stonesifer.

In addition to the appropriations, the general assembly also passed a bill that establishes a new state-related university performance fund, and outlines the state’s first performance-based funding formula.

The formula, once funded, would apply to Penn State, Pitt and Temple University.

The new formula would consider each university’s population of in-state students, Pell Grant recipients, community college transfers, students from a low-matriculation high school, students who earned a high-demand degree and students who have earned 60 credits by the start of their third year, according to Penn State.

Then, each university’s performance allocation would be calculated based on goals, looking at the four- and six-year graduation rates for in-state undergrads; a six-year graduation rate for in-state undergrads who are Pell Grant recipients; and high-demand degree production for in-state undergrads, according to Penn State.

The model also includes a bonus for a university’s year-over-year improvement in its performance metrics, and an affordability bonus for schools that keep the percentage increase in their total cost of attendance below the percentage increase in the Higher Education Price Index for the most recent available year.

Mike Stefan, Penn State’s vice president for Government and Community Relations, said the university is pleased to see performance-based funding “take the next step toward becoming a reality.”

“We feel strongly that performance-based funding will be a win-win for the commonwealth and the state-related universities by tying funding increases to metrics that will help to advance student success, improve college access and affordability, and strengthen our workforce,” he said. “We are eager to continue working as partners with the commonwealth to meaningfully fund this new model, for the benefit of our Pennsylvania-resident students and families.”

Stonesifer said Pitt is also supportive of the Performance Based Funding Council’s recommendations, which were adopted in the Pennsylvania School Code.

“We believe performance benchmarks will increase accountability and transparency while creating pathways for increased state support for our students and the university,” he said. “We look forward to working with the legislature as part of next year’s budget negotiations when allocating performance-based funding will be taken up.”