Penn State leaders say they’re paying close attention to the work of a new Pennsylvania council that will make recommendations for performance-based funding for Penn State, Pitt and Temple.
“There’s a variety of ways they can do this. It’s going to be incumbent upon us to stay in the conversation and to stay at the table to ensure that it gets done appropriately," said Mike Stefan, vice president for government relations at Penn State, during a board of trustees committee meeting Thursday.
Stefan said it’s too soon to know a specific dollar amount that will be allocated. But, he said, what is expected is for the state to put aside some funding under a new budget line with the state Department of Education. That money will then be allocated to the universities.
President Neeli Bendapudi said Penn State is arguing for “simplicity” when it comes to performance-based funding. That could be funding per student or based on graduation rates or number of first-generation students.
“My fear is that they’ll say 5%, but 5% across the board," she said. "That’s really not performance based.”
The potential changes in state funding come as Penn State has been overhauling its own budgets. That includes making buyout offers to many employees at its Commonwealth Campuses.
According to the chief financial officer, the university is estimating those buyouts will add up to about $38 million a year in net savings.
