Slide 1 Title Slide
to our College Spring meeting. We decided to try a different time of
day to enable those who teach in the afternoon to attend. Today, we
want to share with you some updates from this academic year,
particularly to update you on the University and College budget
situation and to recognize the work of students and faculty.
Slide 2 University General Funds Budget
slide shows the University’s overall General Funds Budget, not
including those funds that are designated for particular programs. As
you can see, the University is very dependent on tuition and fee income
and Associate Dean Gary Kesler will talk a bit more about our
admissions information to date. The State Appropriation makes up about
20 percent of our budget. The “other” is from investment income (not
on endowment funds, but rather the investment of tuition and fees) and
the overhead from federal grants, a 46 percent fee, which is required
to be captured by the University.
Slide 3 Appropriations vs. Tuition and Fees as part of General Funds Budget
slide illustrates how our state appropriations have changed as a part
of our overall General Funds budget during the past decades. The gap
at the right end of the graph continues to widen, but not as a result
of extraordinary increases in spending. Rather, there have been
overall inflationary increases seen in higher education while the share
of state support has declined.
Slide 4 General Funds Budget vs. State College and State-Related Appropriations
chart shows how the state-related institutions have fared since 2000.
As the state budget has grown along with the Consumer Price Index, the
state has provided increases to the State System and Community
(Penn State, Temple, Lincoln and Pitt)
Slide 5 Summary of State Appropriations
chart shows the University’s appropriation history since 2001-02,
including our initial appropriations and, in some cases, mid-year
rescissions. Over the last eight year, our total appropriation has
increased by only 5.4 percent or .7 percent annually on average.
Starting in 2005-06, Hershey Medical Center funds appear as part of
these overall funds.
Note that during the current academic
year, we had to absorb a 6 percent rescission from the state
appropriation, resulting in a gap of several million dollars. The
University absorbed as much of that as they could centrally and passed
on about 1.25 percent to the colleges and campuses. Later we’ll look
at how we handled this in the College.
Next year’s state appropriation will likely remain at this year’s level AFTER the 6% rescission.
Slide 6 Annual Percentage Change in Budget, Tuition & Appropriation
chart shows that in times when the appropriation has gone down, the
University has turned to tuition increases to cover the gap. With the
current economy, that option isn’t available this time around.
Slide 7 Cost Drivers
Our annual budget is driven by
- salary adjustments (or as is the case this year—no salary adjustments);
(this includes retirement; increased contributions will be required for
the State Employees Retirement System; health care continues to
- utilities rising (price caps on electricity are going away)
in mind, other universities are facing massive layoffs, salary
reductions, hiring freezes, mandatory furloughs, etc. They are dealing
with double-digit cuts.
Slide 8 University Actual Expenditures
Slide 9 One Percent Increase Modules
Percent Increase Modules” are the best way we know to explain the
relationship between the two primary revenue streams (appropriations
and tuition) in the General Funds Budget and the major expenses of
running the University. At the University level, the administration
calculates revenues and expenses in one percent modules to provide some
general parameters in budget planning, and they also provide a good
means of assessing budgetary tradeoffs.
On the expense
side, for example, providing a one percent increase in salaries and
related benefits costs about $8.5 million. On the income side, a one
percent increase in the state appropriation will yield about $2.6
million. A one percent increase in tuition will bring in
approximately $7.8 million in revenue.
about the relationship between state general funds appropriation and
salaries, the cost of a 3 percent salary increase would be three times
$8.5 million, or $25.5 million. Hypothetically, if we were paying for
the $25.5 million out of our state appropriation alone, it would
require a 9.7 percent appropriation increase to the general funds just
to cover the 3 percent salary increase. Or, if we were paying for the
increase totally from tuition, it would require a 3.3 percent tuition
Though there will not be salary increases this
year, the University will cover health benefits increases, rather than
passing those on to employees. Again, we are much better off here than
many universities around the country.
Slide 10 Budget Recycling/Rescissions – College impact
slide shows the impact of the current-year budget recycling and/or
rescissions. The budget guidelines for Penn State use a 1 percent
recycling model to ensure some central funding for new initiatives.
The College has benefitted from this in the past. Currently, the
recycling for every campus and college is helping to cover the central
In July 2008, the College had to return 1
percent to the central budget—as did every campus and college across
the University. The College budget absorbed .66 percent of that cut
and passed on to the units a smaller percentage amount.
of the state budget rescissions this year, the University picked up
over 5 percent and passed on 1.25 percent to the colleges and
campuses. In the College of A&A we did not pass any of this cut
onto the units, but absorbed it all at the College level.
Slide 11 2009-10 Budget Recycling
the continuing decline in state appropriations and limited room to
raise tuition, for 2009-10, colleges and campuses have been notified
that they will be required to return 2 percent to the central budget.
The College is absorbing 1 percent of this cut and passing on 1 percent
to the units. We are budgeting for additional mid-year cuts.
At Penn State, benefits are handled centrally, but that’s not always the case.
most thorny news in this picture is that though we expect next year to
be difficult, we anticipate it being even more challenging the two
years after this. Some of the state and university budget is being
immediately shored up by the federal economic stimulus funds, but those
are temporary dollars—they will not cover salary and benefits for
permanent employees, our biggest expense. The economic outlook is not
Slide 12 2007-08 College Revenue
chart shows last year’s actual income, the bulk of which comes from
University general funds. This is not a bad balance. I’ve seen
situations in the arts where it is closer to 90 and 10 percent. Still,
the goal is to increase other sources so that we have a different pie
Slide 13 2008-09 College Revenue
is a bit of apples and oranges, because we still have two months left
to go in the fiscal year that ends June 30. You can see that we have
increased revenue sources from the World Campus and Summer Sessions and
endowments and gifts. There has been a task force working this year to
examine ways we can continue to increase revenue and to see how we can
best utilize any new sources of revenue.
Slide 14 2007-08 Actual Expenditures
slide illustrates how we spend our money in the College. And the
positive comparison I want to make here is that even though the largest
chunk is, and always will be, salaries, the balance between salaries
and operating costs is healthy. Again, I’ve been in situations where my
goal as the budget executive was to try to reach a ratio of 85 percent
in salaries to 15 percent in operating.
Now, we have
been working to reduce operating expenses. Salaries are obviously more
difficult to reduce, although there are some options through attrition
and careful attention to workloads and performance of everyone.
welcome your thoughts on any ways you think we might save some
additional dollars within your respective units. Please send your
thoughts about potential ways to cut costs to your unit head, who can
then share your ideas with Dawn Datt. Some ideas may be implemented at
the unit level, but there may be ways we can share ideas that will
impact the entire College.
faculty member asked me a few weeks ago if I might explain how the
fundraising process worked. A good chunk of any dean’s, and often
department head’s, time nowadays is spent in fund-raising. My rule of
thumb is that about 60 percent of my time is spent in that enterprise
on your behalf.
Fundraising is asking people to make an
investment in the faculty and students of our College. Some people
find it an unpleasant task. That’s not the case with me. I often
quote a line from Hello, Dolly. Dolly Levi notes that “Money
is like cow manure. It doesn’t do any good unless it’s spread around
helping young things grow.” That’s the business we’re in—helping young
Often, it’s not just money that donors or
alumni can invest. Sometimes, it’s their time and professional
contacts. My main job in development is to listen and learn about what
their passions are and connect their interest and passion to what we
are doing. People will not invest unless they become passionate and
feel a sense of participation and ownership. And sometimes, what they
are interested in, is not something we can, or want to do. It’s
important to know when you should say “no” to a gift. I’ve done that
Slide 15 Donor Commitment Continuum
have to feel they are investing in something worthwhile. Sometimes,
it’s other volunteers or development staff who go with me when we visit
with potential donors who we want to move along this continuum.
Sometimes, it’s faculty who open doors for us. When I talk about
faculty involvement, some people see red warning lights. There
certainly are many stories where a self-interested faculty member has
tried to work his or her personal relationship with a donor to his or
her own advantage without regard for the needs of a program or
department. Some universities have turned down large gifts because of
the inappropriate involvement of a faculty member. However, many of us
realize that faculty are closest to their own disciplines and can tell
the story much better than those of us at more of a distance. So, when
the timing is right and faculty members understand how to work with
unit heads, deans, and development staff, the end result can be very
I’ve asked Bill Schroeder from the theater
faculty to come and share his experience. By simply sharing his
passion for our program and the quality of the students in theatrical
design, Bill helped a donor move from considering a six-figure gift to
a more than million dollar estate gift. I’ve told Bill he has 3-5
minutes and that I will get out my vaudeville hook.
any of you have any ideas about possible alumni and donor contacts,
please send them to your school or department head, who will get in
touch with development staff to follow up.
that we have a full team on board in the college now and am going to
ask first Gary Kesler and then Bill Doan to share some updates from
Slide 16 Undergrad Dean Title Slide
we wrap up this year, I want to celebrate some additional
accomplishments in addition to the highlights from Deans Kesler and
We want to celebrate those who won College awards this year.
For outstanding teaching:
John Bowman, Visual Arts,
Timothy Deighton, Music, and
Charles Youmans, Music
Norene Ferris, Music, won the award for excellence in advising and mentoring.
For outstanding performance as a staff member:
Joyce Robinson, Palmer Museum
Laura Sullivan, Center for Performing Arts, and
Deb Veneziano, Music
in the University learn what we are about through the recognition that
our faculty and staff earn at the University level.
Wanda Knight, Art Ed received the Faculty/Staff Diversity Recognition Award
This year, we had two new faculty members selected for the Distinguished Professor title:
Lisa Bontrager, Music
Chris Staley, Visual Arts
And the School of Music once again did us very proud with University awards:
Daryl Durran, received the Undergraduate Program Leadership Award.
Richard Bundy, received the 2009 President’s Award for Engagement with Students
Velvet Brown, received the 2009 Faculty Scholar Medal for Outstanding Achievement in the Arts & Humanities
addition to a long list of articles published by our faculty, several
faculty had major publications or awards occur this year.
Art Education, received her second Fulbright and will be teaching in
Austria this summer. She also co-authored a book that was published—a
history of the first 25 years of the Journal of Social Theory in Art Education.
Brian Curran, Art History, co-authored a book on the history of the Obelisk.
Maureen Carr, Music, received the Distinguished Alumna Award from Rutgers University and has a new book coming out on Stravinsky’s Pulcinella.
An article co-authored by Elizabeth Smith,
Art History, on the structural appraisal of the Florentine Gothic
Construction System received the “best paper” award from the Board of
Governors of the Journal of Architectural Engineering.
And Graphic Design racked up several awards and significant exhibitions this year:
Based in New York City, Graphis is
the most prestigious book publisher in the design industry. Each year
they hostan international showcase of student and teacher excellence in
design, advertising, and photography. This year, Professors Fang Chen and Lanny Sommese received Gold Awards in that showcase and Professor Kristin Breslin Sommese
was one of only six educators honored with a prestigious platinum
award, for her outstanding instruction and dedication to students.
jury of “The 19th International Biennial of Humor and Satire in the
Arts '09” competition/exhibition in Bulgaria recently selected Fang Chen’s work for a Gold Award.
work of only 13 American designers was selected for the recent “Warsaw
Poster Biennale” in Poland, the oldest and most prestigious
competition/exhibition of its kind in the world. Of the 13, three were
members of the Penn State Graphic Design faculty – Professors Lanny Sommese, Fang Chen, and Ryan Russell.
The jury of the “Good 50x70 International Poster Competition” selected one of Ryan Russell’s
posters for inclusion in the exhibition. Based in Milan the highly
selective International competition/exhibition’s aim is to “increase
public awareness and improve life across the world." Out of the more
than 2000 entries only 210 were selected for exhibition. The
exhibition is touring to Italy, Spain, Sweden, and Mexico.
Other significant international exhibitions for Professors Fang Chen and Lanny Sommese included ones held in Moscow, Mexico City, and Ogaki, Japan.
Faculty in the School of Visual Arts continue to make their mark in national and international arenas.
• Professor Helen O’Leary was awarded a residency/fellowship in the Ireland Cultural Center in Paris
• Del Harrow was honored as one of six Emerging Artists in Ceramics by the National Council of Education in the Ceramic Arts (NCECA).
• Matt Kenyon
received a residency at CO-LAB in Auckland, New Zealand, where he will
have a one-person exhibition at the MIC Gallery and provide the keynote
address at an international conference.
• Alissa Mazow, Art History, will attend an NEH summer institute.
• Leo Mazow, Palmer Museum, was appointed a Senior Fellow at the Smithsonian.
Norman Spivey, Music, collaborated with Susan Russell,
Theatre, who wrote and directed him in a one-man show he developed on
the work of Reynaldo Hahn. After premiering the work here in State
College, Norman has taken it “on the road” to other university settings
and recently performed at the York Theatre in New York. The artistic
director at the York wants to support this work and has offered a spot
in the York Theatre reading series for next year!
I want to
end this meeting by thanking our colleagues who assist us through their
service. Many of you provide important service through your committee
work at all levels—departmental, college and university-wide. Today, I
want to give a special word of thanks to the College Faculty Council.
This is an important group that provides a faculty voice for the dean.
I understand that it was previously known as the “committee that never
meets.” But that is changing drastically and they have taken on the
important task of updating our College by-laws, which haven’t been
updated since 1991. You’ll be hearing more from this group on this
project next year, but I want to thank those who have served either
this full year on the Council, or a portion of the year. I’ll ask them
to stand and we’ll do a single clap for each of them.
Paul Chidester, Chair
I want to thank the College Promotion and Tenure Committee. We have
had an unusually high number of dossiers to review this year.
I’d like each of them to stand and again we’ll give them a single hand-clap.
Jawaid Haider, Chair
like all those who served on departmental promotion and tenure
committees to stand. And finally, I’d like to ask the administrative
assistants who play a key role in working with these dossiers and
assisting faculty to compile information to please stand.
that we are adjourned. Please have a good end of the semester and a
relaxing and reinvigorating summer. See you at Commencement on May 16.