Trustees approve increase in 1998 budget

The University will spend about $1 billion on academic expenses during the 1998 fiscal year. The Board of Trustees approved a budget of $1.098 billion at a June meeting, a 5.4 percent increase over last year's budget. Undergraduate expenses will rise only 4.5 percent, though, meaning some costs will have to be cut around the University to make up the difference. "Clearly, we understand that students are concerned with rising tuition costs," Penn budget director Michael Masch said. "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. Masch explained that this is due to the overwhelming amount of funds that can only be utilized for specific circumstances -- including research and Medical School expenses. Penn's tuition still remains the second-lowest among Ivy League institutions, with Cornell University costing about $200 per year less. However, Cornell has several divisions that receive funding from the state of New York. So, as Masch noted, Penn is the lowest-priced completely private Ivy. The new budget will require University administrators to improve efficiency and productivity. The Office of the Comptroller will eliminate 10 staff members, saving $300,000. Acquisition Services will eliminate six staff members for a savings of $175,000. The Physical Plant will service an additional 500,000 gross square feet without adding any new crafts personnel. Information Systems will increase its annual volume by 25 percent -- over 40 projects -- without a staff increase. Public Safety projects a 9 percent reduction in the overall crime rate and a 20 percent decline in robberies. A 40 percent increase in walking escorts was also budgeted, without added staff. Human Resources will "dramatically" expand its workload while reducing eight positions, providing a savings of $300,000. The report given to the trustees regarding real estate said that the "outsourcing assignment has yielded $250,000 in personnel savings to date while expanding presence and service." Revenue will also be raised from two new master's degree programs in the School of Arts and Sciences and the School of Engineering and Applied Science. The new Barnes & Noble Bookstore, an internal audit and increased clinical revenues from the Nursing School and the School of 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.