Trustees approve budget

The 1998 academic budget of $1,.098 billion is a 5.4 percent increase. The Board of Trustees approved an academic budget of $1.098 billion for 1998 at its June 20 stated meeting. The general operating budget growth is 5.4 percent, but the increase in undergraduate charges is only 4.5 percent. Therefore, undergraduates will not be responsible for the full budget growth as administrative restructuring and cost containment continue. "Clearly we understand that students are concerned with rising tuition costs," said Michael Masch, Executive Director of Budget and Management Analysis. "That's why the University is cutting costs and increasing non-tuition revenues to control the undergraduate tuition." But tuition and student fees will still account for the largest portion of the budget, approximately 40 percent overall. According to Masch, this is due to the overwhelming amount of funds that can only be utilized for specific circumstances -- including research and Medical School expenses. "The only ways to increase University revenues other than through increases in tuition are through increases in gifts and research grants," Masch said. "These are the only sources of discretionary revenue for the University." And Penn's tuition remains the second lowest among the Ivy League institutions with only Cornell University costing just over two hundred dollars less. But because Cornell has several divisions which receive funding from the state of New York, Masch noted that Penn is the lowest priced, completely private Ivy. "Looking at the aggregate University budget numbers, you really don't see what we are doing with all the money," he added. "Counseling, extra curricular activities, freshmen seminars, cutting edge research?it all adds up." The new budget will require University administrators to implement many productivity improvements, according to the booklet given to trustees. Financially, the Comptroller's Office will eliminate 10 staff members for a savings of $300,000. Acquisition Services will eliminate 6 staff members for a savings of $175,000. The Physical Plant will see 500,000 of gross square feet put on line with no increase in crafts personnel. Information systems will add 25 percent more annual volume -- over 40 projects -- without a staff increase. In public safety, there is a projected nine percent reduction in overall crime rate and a 20 percent decline in robberies. And there will be a 40 percent increase in walking escorts without added staff. Human Resources will "dramatically" expand its workload while reducing eight positions for a savings of $300,000. Concerning real estate, the report given to trustees said that the "outsourcing assignment has yielded $250,000 in personnel savings to date while expanding presence and service." And three new late night dining venues will be opened next year utilizing the existing facilities, while there will be a consolidation of the School of Arts and Sciences and Veterinary Medicine business office functions. Revenues will also be raised from two new master's programs in the School of Arts and Sciences and the School of Engineering and Applied Science. The new Barnes and Noble Bookstore, an internal audit and increased clinical revenues from the Schools of Nursing and Dental Medicine are expected to contribute additional revenue. But the largest source of new revenue will be the Campus Smart Card, a debit card devised in a recent effort to make the University a "cashless campus." The Smart Card will generate an estimated $6.4 million -- over three times the expected revenue from any other single source. The trustees approved the new budget for the first of a five-year budget planning process.