Editor's note: The following op-ed by Penn State President Neeli Bendapudi first appeared in PennLive on Sunday, Oct. 1. 

In early July, a vote to fund the public missions of Penn State and our fellow state-related universities ended in a stalemate, falling six votes shy of the two-thirds majority needed to pass the Pennsylvania House. Nearly three months later, this funding for our Pennsylvania students remains unresolved, despite the state’s main budget bill — which is separate from Penn State’s funding bill — reaching the governor’s desk in August.

I cannot overstate the importance of state funding to Penn State, our students, and our mission to serve the citizens of Pennsylvania. I am urging lawmakers to return to Penn State’s appropriation and vote to approve funding for our university and ultimately our students. I have heard the call from some lawmakers who want additional accountability and transparency from state-related universities, and I am proposing a path forward.

At Penn State, general support from the state is used exclusively to support in-state tuition for Pennsylvania students and families, which last year saved our 42,000 Pennsylvania resident undergraduates an average of $15,000 each on tuition costs compared to their out-of-state peers. This discount is especially important at our 19 undergraduate Commonwealth Campuses, where 78% of our students are Pennsylvania residents.

In the absence of these critical funds, Penn State has temporarily redirected dollars from other sources — including delaying employee salary increases — to support the in-state tuition rate for the fall semester and maintain our commitment to our Pennsylvania students and their families. However, with student tuition and state dollars comprising the primary funding sources for our education budget, we cannot afford to subsidize in-state tuition for our Pennsylvania students indefinitely. It is crucial for Pennsylvania students that our lawmakers act now, with the promise of additional statewide action on accountability to come.

Penn State is committed to accountability

I believe strongly that Penn State and all public universities must continue to be accountable for how taxpayer dollars are spent and for showing a return on investment for our citizens. That is why I am calling on the General Assembly and the governor to work together with Penn State and all of Pennsylvania’s public universities to design a performance-based funding model for higher education.

I have worked in states that distribute funds to public universities in this way, and it ensures that universities and states are working together on shared goals for workforce and economic development. I know Gov. Shapiro and many state legislators agree with this approach. Under a performance-based funding model, we ideally would grow the funding pie rather than just reallocate existing resources. And we would reward institutions with additional dollars for achieving agreed-upon metrics. In other states, those metrics include educating in-state students, supporting low-income and first-generation students, fostering studies in high-need career fields, and providing opportunities for traditionally underserved students, among others.  

An effective and fair performance-based funding model should be flexible, and it must consider the unique mission and structure of each university. The model also must be simple, with clarity and transparency around what it is trying to accomplish, and the metrics must be aligned with the state’s needs and priorities. Above all, this must be a collaborative effort between lawmakers and the universities themselves, with all stakeholders having a seat at the table.

Penn State is taking action now

I believe that implementing performance-based funding will go a long way toward addressing concerns about accountability and transparency. While we await legislative action, however, I want to address this matter now. I have made the decision to proactively release an annual accountability report that will be publicly available by the end of October at a new webpage we have created: psu.edu/accountability.  

The report and webpage will focus on the information our lawmakers and the public request most often, and that demonstrate Penn State’s value to Pennsylvania, informed by approaches taken in other states. This includes links to financial reports, campus safety reports, and key metrics such as enrollment, student graduation and retention rates, student demographics, alumni wages and more. While much of this information is already publicly available, we have consolidated it in one location and will update it regularly for quick and easy access by all.  

A partnership that endures

I believe this is a pivotal time for public higher education in Pennsylvania. Our partnership with our fellow citizens and the commonwealth has endured for nearly 170 years because we’ve been willing to adapt to meet Pennsylvania’s needs. Penn State remains eager to partner with the state to meet the challenges of today, and remains committed to accountability, and to demonstrating outcomes.

Together with our students and their families, we are depending on the General Assembly to fund our university’s public mission, as it has done for generations of Pennsylvanians. With the state’s support, we can continue to align our programs with the commonwealth’s economic priorities and provide the highly skilled workforce that is necessary for Pennsylvania to compete nationally and globally.

Neeli Bendapudi
Penn State President