U. ends fiscal year with surplus

Contrary to expectations, the University balanced its budget for the 1994 fiscal year and will have surplus funds available for fiscal year 1995. The University finished with a projected surplus of $25,000 instead of the $3.6 million deficit that was originally projected for the fiscal year ending today, according to the Resolution on the Operating Budget for fiscal year 1995 presented at this month's University Trustee's meeting. "It shows the University is in a healthy situation," Executive Vice-President of the University Janet Hale said this week. "We will continue to move forward from here." The main reason for the drastic difference between the projected and finalized budgets was that the University found $2 million to pay for the Veterinary School -- state funds which the University had not originally expected to receive, Hale said. Deputy Director of Resource Planning and Budget Benjamin Hoyle said that the University had found the $2 million in its "pockets of savings and revenues." A bill securing state funds for the University passed through the Pennsylvania Senate last week and the House of Representatives Monday. Hoyle said the University's expenditures increased this year because of faculty and administration salary raises. This was offset, though, by raised tuition for students, as well as an "unanticipated growth" in the number of students admitted to the University, he added. But Hoyle said it is important to realize that although the tuition was greater, the increase was proportionally lower than the last fiscal year's increase, reflecting a trend of downward slope in the rate of tuition. The salaries of the faculty and administration rose at just about the rate of inflation, he added. Hoyle said funding for University research increased from the previous fiscal year, and is expected to increase further next year. Hoyle added, though, that the amount of funding for research ultimately depended on federal budget allocations for specific areas of research. Several University schools and centers, as well as the University of Pennsylvania Medical Center were mentioned in the report. The Graduate School of Education and the School of Social Work had projected surpluses, but the Annenberg Center was expected to have a deficit due to a revenue shortfall. The Medical Center finished the fiscal year $50,227,000 better than budget.