Pitt’s tuition increased this summer, and so did the University’s salary pool.

Pitt’s… Pitt’s tuition increased this summer, and so did the University’s salary pool.

Pitt’s Board of Trustees approved a tuition increase across all campuses, ranging from 2.5 to 5.5 percent. The board also approved a $25 increase in Pitt’s computer and network service fee, and raised the salary pool for Pitt employees by 3 percent after a year-long salary freeze.

The board cited increasing costs, stagnating investments and flat-lining state appropriations as the principle reasons for raising tuition.

Arthur Ramicone, the vice chancellor for budget and controller, said “the University cannot move forward by just cutting costs” during the Budget Committee meeting, at which members approved the tuition increase.

Students at Pitt’s regional campuses will have tuition increased 2.5 percent. For in-state students, that’s an increase of about $200 to $300, depending on their major. For out-of-state students, prices will climb about $500 to $600.

In-state students at Pitt’s main campus will see the biggest percent tuition jump this fall at 5.5 percent, about $600, from $13,344 to $14,076. Out-of-state student tuition goes up 3 percent, about $700, to $23,732.

The most expensive undergraduate programs will be in the School of Nursing and the School of Health and Rehabilitation Sciences. Both will cost $17,720 for in-state students and $30,162 for out-of-state students.

Effective this fall, the computer and network service fee will increase by $25 to $175 for full-time students and $100 for part-time students.

The per-semester fee, since its last increase in 2006, was $150 for full-time students and $75 for part-time students.

As in the past, money generated by the fee will pay for things like the maintenance of Pitt’s network infrastructure, wireless network, student computing labs, low-cost software for students and e-mail services.

The written proposal to the committee cited network security and student software cost increases of more than $1.3 million annually that needed to be addressed. The fee increase will bring Pitt an additional $1.5 million per year from its more than 34,000 students.

Chancellor Mark Nordenberg cited the record number of applications the University received this past year to demonstrate that students still view the University as a high-value institution and worth the expense.

Nordenberg said the University hopes the tuition increase would “strike the best possible balance” between cutting costs and increasing the University’s revenue, and would be “moderate in the marketplace.”

Pitt’s state appropriations, which have increased by about $20 million overall since 2000, were cited as a large factor in the decision to raise tuition. Pitt’s operating budget has grown by more than $500 million in that time.

“As the level of state support goes down, the level of tuition inevitably goes up,” Nordenberg said.

Part of the University’s $1.8 billion budget will include a $6 million increase in the financial aid budget, which Ramicone said was meant to reflect tuition increases.

The increases in the financial aid budget take shape in a mixture of need-based and merit-based aid opportunities, Ramicone said.

At the same meeting the board approved a 3 percent salary increase for University employees, ending a year-long salary freeze.

Ramicone said the University could not maintain a salary freeze without losing key staff to competing institutions.

Nordenberg said the University has yet to see “out of the ordinary” staff losses. He called the salary increase “one of our highest priorities in this budget.”

Research revenue, which represents more than four times the state appropriation for Pitt, is projected to rise again this year, forming the largest portion of revenue for the University at about $750 million.

The increase in research revenue, which Nordenberg called “nothing short of stunning,” came when Pitt’s endowment lost a large portion of its value and fewer donors than normal have helped the University.

The board approved a number of capital projects, which include construction in Benedum, Parran and Crabtree halls, as well as in the Concordia Club and Barco Law School.

The $182 million capital budget would help create jobs in the Pittsburgh region, Ramicone said.

“This is a very good news budget in terms of the region,” he said.