UNIVERSITY PARK, Pa. — Pennsylvania Gov. Josh Shapiro proposed a 7.1% funding increase for Penn State’s 2023-24 general support appropriation and for Pennsylvania College of Technology, and a 2% funding increase for Penn State Agricultural Research and Cooperative Extension, during his first budget address as governor, which was delivered March 7 during a joint session of the Pennsylvania General Assembly.

The governor’s proposed 2023-24 budget also includes $2.35 million for the Invent Penn State initiative, matching the state’s initial investment last year in the entrepreneurship-focused program.

Penn State’s general support appropriation, which helps to offset the cost of tuition for Pennsylvania resident students, last increased in 2019-20, when lawmakers approved a 2% funding boost.

“We are very appreciative that Gov. Shapiro has proposed to increase Penn State’s funding for the next fiscal year, particularly after three consecutive years of flat funding for our general support appropriation,” said Penn State President Neeli Bendapudi. “From keeping tuition costs lower for in-state students, to serving as a repository of knowledge and research-based problem-solving for the state’s agriculture industry, to driving economic development and preparing the state’s next generation of entrepreneurs, workers and leaders, the commonwealth’s investment in Penn State impacts the lives of all Pennsylvanians.

“This is the beginning of a new partnership with the governor and his administration, and I look forward to working with him and the General Assembly in the months and years ahead to continue to address the needs of our students and strengthen Penn State’s impact on the commonwealth.”

Bendapudi is scheduled to appear before the Pennsylvania House and Senate appropriations committees on March 21 and March 30, respectively, to discuss the University’s funding with legislators. The governor’s budget proposal marks the first step in the state’s annual budget-setting process, and Penn State’s funding will require the approval of the General Assembly as lawmakers work toward passage of a final state budget package in late June.

The governor’s funding proposal falls short of the 47.6% ($115.2 million) increase requested by the University for its 2023-24 general support funding — a request designed to place Penn State’s in-state students on equal financial footing with their peers at Pennsylvania’s other public universities. Penn State receives the lowest funding in the state on a per-student basis, lagging behind the commonwealth’s other public institutions by between $2,600 and $3,400 per Pennsylvania resident student.    

“We understand that available funding is limited, and we sincerely appreciate the proposed increase, but closing the per-student funding disparity that exists between Penn State and the other public universities in Pennsylvania remains a priority, as it is critical to our students’ success and to our long-term ability to provide all Pennsylvanians with affordable access to a world-class education,” said Zack Moore, Penn State vice president for Government and Community Relations. “As Pennsylvania’s flagship public research university and the state’s only land-grant institution, it is a matter of fairness that our students are funded at the same levels as their peers.”

Currently, Penn State receives $242.1 million from the state to fund its education mission — an amount that, when divided evenly among approximately 43,000 Pennsylvania resident students, equals about $5,600 per student. Comparatively, on a per-Pennsylvania-student basis, the state provides Temple University with $8,275 per student, the Pennsylvania State System of Higher Education (PASSHE) receives $8,378 per student, and the University of Pittsburgh receives $9,049 per student.

Moore also noted that increased funding for Penn State’s students and their families represents an investment in Pennsylvania and the state’s economic future. Penn State is an economic powerhouse for the commonwealth, contributing $11.6 billion to Pennsylvania’s economy and supporting both directly and indirectly more than 105,000 jobs. With 24 campuses, that economic impact is felt in communities across the state. Penn State also educates more Pennsylvania students than any single institution in the state, and with more than 390,000 Penn State alumni calling Pennsylvania home, the University provides an unmatched pipeline of talent for the state’s future workforce.

The governor’s proposed funding for Penn State is as follows:

• General Support: $259.3 million, a proposed increase of $17.2 million, or 7.1%, over 2022-23. General support funding covers core teaching costs in Penn State’s education budget, allowing the University to provide an in-state tuition discount that saves the average Pennsylvania resident more than $13,000 annually compared to a nonresident student. These dollars also enable Penn State to invest in the quality of its academic programs so that it can attract the state’s top students and prepare them for successful careers in Pennsylvania.
• Agricultural Research and Cooperative Extension: $58.9 million, a proposed increase of $1.2 million, or 2%. Agricultural research and extension programs are not funded by tuition, so appropriation increases are necessary to keep pace with rising costs and to leverage matching federal and county dollars. This funding supports Penn State Extension and the vital research conducted by the College of Agricultural Sciences, benefiting citizens in every Pennsylvania county and helping the state’s agriculture industry combat challenges ranging from avian influenza to the spotted lanternfly. In its 2023-24 appropriation request, the University had requested a 5% increase for the Land Scrip Fund, which supports Penn State Agricultural Research and Cooperative Extension. Additionally, Penn State’s request for $2 million to implement the Emerging and Advanced Technology Initiative within the College of Agricultural Sciences was not included in the governor’s budget proposal.
• Pennsylvania College of Technology: $28.6 million, a proposed increase of $1.9 million, or 7.1%. Penn College offers hands-on, applied-technology education that is critical to Pennsylvania’s workforce needs. This increase would benefit the college’s 4,200 students, 90% of whom are Pennsylvania residents. The University had asked for a 17.7% funding increase for Penn College in its 2023-24 appropriation request. Like Penn State’s general support funding, Penn College’s last funding increase came in 2019-20.
• Penn State Health and the College of Medicine: $15.1 million, representing proposed level funding from 2022-23. This funding is used for medical assistance to provide access to high-quality health care for citizens with limited financial means. 
• Invent Penn State: $2.35 million, representing proposed level funding from 2022-23, to drive economic development. Renewed state support would allow Penn State to continue to strengthen and grow the LaunchBox and Innovation Network, and to further expand access to the Pennsylvania Technical Assistance Program for small to medium enterprises, with an emphasis on the manufacturing sector. This investment would positively impact business creation and job growth in communities statewide.