Pitt FY 2002 Budget Reflects Fiscal Demands to Continue Excellence in Teaching, Research

PITTSBURGH—The University of Pittsburgh Board of Trustees today approved a Fiscal Year 2002 budget that calls for a $58 million increase from Fiscal Year 2001, reflecting the need to continue recent gains in teaching and research in order to remain competitive.

The proposed budget anticipates revenues of $1.169 billion. The largest increases in expenditures are in faculty and staff compensation and increased student aid. Faculty and staff compensation accounts for an additional $39.7 million in the new budget, reflecting an average of a 4.0 percent increase in base salaries and benefits, in addition to a projected increase in sponsored research activity. Student aid will increase approximately $6.5 million, from $73.9 million in 2001, to $80.3 million.

"It is vital to the University's status as one of the finest and most productive universities in the world that we attract, and retain, the most qualified educators, researchers, and students," said Pitt Chancellor Mark A. Nordenberg. The goal is not simply to remain competitive, but to continuously improve and progress. Pitt must be able to recruit and support the teachers who will inspire and the researchers who will blaze new trails in their fields.

"Similarly, we must maintain a financial aid pool that is responsive to the needs of families, so that qualified students, regardless of their economic background, may avail themselves of the quality educational experiences Pitt has to offer."

Revenues from tuition and fees are expected to increase to $317.9 million, up from $295.9 million, based upon a 7.5 percent increase for all students, and total enrollment of 32,624 students. Pitt's tuition increase ranks in the middle of tuition increases from comparable schools. Most other tuition increases ranged from approximately five percent to nine percent, with some schools reporting double-digit tuition increases. In-state tuition for students in the College of Arts and Sciences, Pittsburgh Campus, will be $6,902, an increase of $480 per year. Out-of-state students will pay $15,160, an increase of $1,056 per year.

The University's appropriations from the Commonwealth for 2002 will increase $1.1 million, to $178.5 million.

"While we are pleased that the appropriation for the University of Pittsburgh is higher than previous years, it should be noted that Commonwealth support of Pitt increased by only six-tenths of one percent over last year's appropriation, and that the increase to the University's base appropriation was only 1.2 percent," said Nordenberg. "This made it impossible to hold our tuition increases to a lower level. During this same period, the rate of inflation was approximately 3.4 percent, and costs borne by colleges and universities rose at an even higher rate. Faced with the difficult choice of increasing tuition or abandoning plans to move the University forward, we chose progress."

Grants and contracts are budgeted to increase by $33.2 million, a 9.0 percent increase, and endowment income is projected to increase by $3.3 million, due to anticipated endowment gifts and the continued growth of the endowment.

The budget includes $8.1 million in student life and academic program enhancements-an increase of $1 million over the previous year, and $9.5 million in research incentive programs-an increase of $600,000 over 2001. Student life enhancements include the popular Pitt Arts Program, which allows students to enjoy the city's rich cultural and artistic offerings, and significant expansion of student activity and recreation programs. Research incentive program enhancements include the new microfabrication lab and new product laboratory, as well as laboratory resources in bioengineering, and the human biodynamics lab.

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