Budget approved, tuition raised
July 15, 2010
The college price tag just got a little higher for Pitt students.
In a pair… The college price tag just got a little higher for Pitt students.
In a pair of morning meetings, the Budget and Executive committees of Pitt’s Board of Trustees approved its 2011 budget, which included a series of tuition increases at all campuses from 2.5 to 5.5 percent.
The board cited increasing costs, stagnating investments and flat-lining state appropriations as the principle reasons for raising tuition.
Arthur Ramicone, the vice chancellor of the budget and controller, said, “the University cannot move forward by just cutting costs” at the Budget Committee meeting.
Students at Pitt’s regional campuses will have their tuition go up 2.5 percent. For in-state students, that’s an increase of about $200 to $300, depending on the major. For out-of-state students prices will climb about $500 to $600.
In-state students at Pitt’s main campus will see the highest percent tuition jump this fall at 5.5 percent, or about $600, from $13,344 to $14,076. Out of state student tuition goes up 3 percent or about $700, to $23,732.
The most expensive undergraduate programs will be the School of Nursing and the School of Health and Rehabilitation Sciences; both will cost $17,720 for in-state and $30,162 for out-of-state students.
Chancellor Mark Nordenberg cited the record number of applications that the University received this past year as proof that students still view the University as a high-value institution and worth the expense.
Nordenberg said that they hoped the tuition increase would “strike the best possible balance” between cutting costs and increasing the University’s revenue and while still being “moderate in the marketplace.”
The state appropriations, which have increased by about $20 million 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 increase 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 that the University could not keep up a salary freeze indefinitely without losing key staff to competing institutions.
Chancellor Mark Nordenberg said that the University had not yet seen any staff losses “out of the ordinary” when compared to other years.
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, about $750 million.
The increase in research revenue, which Nordenberg called “nothing short of stunning,” came at a time where Pitt’s endowment lost a large portion of its value and few donors have stepped up to help the University.
The board approved a number of capital projects, which include construction in Benedum, Parran and Crabtree halls and construction in the Concordia Club and the Barco Law Building.
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,” Ramicone said.