Gov. Josh Shapiro approved the state’s general budget Thursday night, along with a separate bill that provides funding for state-related universities.
Like last year, Penn State, Temple University and the University of Pittsburgh will see flat funding. But, a new funding formula could change how state money is allocated in upcoming years.
“This budget establishes a performance based funding formula for our state-relateds, so taxpayers will have confidence that the investment they're making will lead to even better outcomes," Shapiro said.
Penn State leaders hope this means more funding.
“As we enter a fifth consecutive year without a funding increase, I look forward to working with the General Assembly and Gov. Shapiro to implement performance-based funding for 2025-26 as a means to increase the state’s investment in public higher education while also meeting shared goals for Pennsylvania’s long-term success," Penn State President Neeli Bendapudi said in a news release.
Bendapudi has previously supported the idea of performance-based funding, saying that most states use performance-based metrics to fund higher education.
In a news release, she praised the state’s action, saying performance-based funding will “allow the state to work in concert with universities on shared goals for workforce and economic development, college access and affordability, and successful student outcomes.”
Community colleges are seeing a 6% funding increase.
The Pennsylvania Commission for Community Colleges, which includes the Pennsylvania Highlands Community College, said the increase is appreciated.
“We acknowledge the pressures faced in crafting a final state budget. We are grateful to Gov. Shapiro, the Senate and House. As the Commonwealth’s 15 community colleges, we pledge to continue to be good stewards of these public dollars by providing affordable, accessible and high-quality education to our students," a spokesperson said.
Also included in the budget is a new "Grow Pennsylvania Merit Scholarship" program, which will charge in-state tuition for nonresident students who commit to working in Pennsylvania after graduation.
