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Penn State pay raises on hold again until state passes budget

The Pennsylvania Capitol building in Harrisburg.
Commonwealth Media Services
A view of the Pennsylvania Capitol building in Harrisburg. Lawmakers are still negotiating a budget for the 2024-25 fiscal year, which started July 1.

Pennsylvania and Penn State started their new budget years on Monday, but Penn State employees will have to wait for their annual pay raises until lawmakers approve state funding for the university.

Last year, Penn State moved to a two-year budget process, and trustees approved a budget for the 2024-25 fiscal year that includes a 3% pool of funding for merit-based pay increases.

But, like last year, employees will have to wait for raises.

Budget negotiations between Governor Josh Shapiro and top lawmakers are still going on. And Penn State won’t get its state funding until they reach an agreement on both the main budget and spending on non-preferred appropriations, which includes Penn State. Those non-preferred appropriations require two-thirds approval in the General Assembly.

A Penn State spokesman said when the university’s appropriation is finalized, it will begin processing faculty and staff salary increases retroactive to July 1.

"Penn State is monitoring the discussions in the legislature around its state appropriation, which helps fund the in-state tuition discount for Pennsylvania residents," the spokesman said. "Like last year, the university may need to temporarily redirect funding for salary increases to support the in-state tuition discount while the appropriation is pending."

Last year, the General Assembly did not approve funding for Penn State until November, and employees did not get raises and back pay until January. This year, lawmakers have said they think the two sides will have better success reaching an agreement soon.

Anne Danahy has been a reporter at WPSU since fall 2017. Before crossing over to radio, she was a reporter at the Centre Daily Times in State College, Pennsylvania, and she worked in communications at Penn State. She is married with cats.