University Budgeting and Finances: Your Costs
A lot of times in meetings, people throw around references to the budget, tuition, appropriations, student fees, housing and food revenue, donors, endowments, and more. It often feels like a massive thing to wrap your head around, but it also is what informs many decisions that administrators make. Although I am not an expert, I am going to break down the budget for you from a student perspective so that you have more information when you advocate for your passions and pay your tuition bill every semester.
The three big fees you will incur as a student, contributing to overall cost of attendance:
#1: Tuition
Definition and Resources
Amount paid by each student every semester to act as income to the University, mostly covering:
Instruction (faculty, teaching)
Institutional Support (personnel, procurement, storerooms, safety, security, etc.),
Ex: security at events like Movin’ On
Academic Support (advisors, educational materials, media, technology services, etc.)
Ex: Canvas and Outlook access for all students
Student Services (student’s emotional and physical well-being and intellectual, cultural, and social development)
Ex: the Pasquerilla Spiritual Center
Student Aid (scholarships and fellowships in the form of out-right grants)
Ex: scholarships distributed through colleges or through need-based aid
Physical Plant (operation and maintenance of the physical plant relating to grounds and facilities)
Ex: the cutting of grass and leaf-blowing on campus
Who makes decisions on this?
Key People: Sara Thorndike (Senior Vice President for Finance & Business/Treasurer), Neeli Bendapudi (President), Justin Schwartz (Interim EVP/Provost)
The Tuition Task Force was established in 2002 to review tuition, plan strategically for the next few years, and advise the Finance & Business Unit on tuition, specifically the Budget Office.
Sara Thorndike works collaboratively with Neeli Bendapudi, Justin Schwartz, the Budget Office, and President’s Council to identify the priorities of the University, the expected costs of those priorities, and then translates that into what revenue they need which ultimately determines tuition.
Sara Thorndike presents the proposed tuition amount to the Finance, Business, and Capital Planning Committee of the Board of Trustees. After it is approved, it will be voted on by the entire Board of Trustees in July annually, to be implemented before students start the Fall semester.
#2: Student Initiated Fee
Definition and Resources
Supports student-centered activities, services, facilities, and recreation to improve student life. Here is a list of just a few of the things supported by your Student Fee dollars:
Campus Recreation (including your entrance to all recreation facilities on campus)
Bryce Jordan Center Ticket Subsidies
Paul Robeson Cultural Center
University Park Allocation Committee
Student Leadership and Involvement (Homecoming, SPA, MLK)
Sustainability Institute
Counseling and Psychological Services
Student Legal Services
Center for Sexual and Gender Diversity
Gender Equity Center
University Health Services
Lion's Pantry
Student Disability Resources Center
Who makes these decisions?
Key People: Lawrence Miller (2022-2023 UP Student Fee Board Chair), Damon Sims (Vice President for Student Affairs), Sara Thorndike (Senior Vice President for Finance & Business/Treasurer)
The University Park Student Fee Board was formed in 2016. The UP Student Fee Board is comprised of 12 voting members. Some of these members are appointees, and others are At-Large members selected by interview; all members are either undergraduate or graduate students.
The Board also contains four non-voting members including designees from the Chair of UPAC, the Vice President for Student Affairs, the Senior Vice President for Business and Finance, and the Executive Vice President and Provost.
The Fee Board hears proposals from all funded University offices and organizations on an annual basis and then deliberates on those hearings about whether or not to match the proposal. The Fee Board will then recommend a fee amount to Damon Sims and Sara Thorndike who then recommend the fee to Neeli Bendapudi.
Just like tuition, Sara Thorndike presents the proposed Student Initiated Fee amount to the Finance, Business, and Capital Planning Committee of the Board of Trustees. After it is approved, it will be voted on by the entire Board of Trustees in July annually, to be implemented before students start the Fall semester.
In summary, the Student Initiated Fee amount is based on the recommendation of the Student Fee Board, but the Board of Trustees has final approval.
Sources:
Complete Breakdown of the University Park Student Initiated Fee
Members of the Student Fee Board (and how they are appointed)
#3: Housing and Food Services Room and Board Rates
Definitions and Resources
Housing and Food Services are housed in Auxiliary and Business Services and Residence Life is housed in Student Affairs at Penn State. These trio of units are dedicated to creating a “comfortable and memorable” experience for Penn State students.
Whether it’s in an educational, social, or nutritional way, each area works together to provide an atmosphere that “encourages a healthy lifestyle and a safe campus culture”. They organize campus events, cook at the dining commons, and clean in the residence halls.
Revenue from your Housing and Food Services rates help cover (to name a few things):
Bryce Jordan Center
Campus Dining
General Stores
Housing Operations
id+ Office
Information Technology
Lion Surplus
Marketing Office
Multimedia and Print Center
Safety
Transportation Services
Who makes these decisions?
Key People: John Papazoglou (Associate Vice President of Auxiliary & Business Services), Sara Thorndike (Senior Vice President for Finance & Business/Treasurer)
John Papazoglou is responsible for the overall vision and strategic direction for Housing and Food Services, which includes recommending room and board rates. Board rates are most affected by inflation, and room rates are most affected by dorm renovations the University is undertaking.
John Papazoglou recommends rates to Sara Thorndike.
Sara Thorndike presents the proposed room and board rates to the Finance, Business, and Capital Planning Committee of the Board of Trustees in February annually. After it is approved, it will be voted on by the entire Board of Trustees, to be implemented before students start the Fall semester.