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Thursday, February 26, 2009

Penn boosts aid, trims fee hike: UPDATE
The University of Pennsylvania' endowment, which provides 9% of the yearly budget, fell 19% as markets declined in the second half of last year, to $5.05 billion, from $6.23 billion.
 
As a result, Penn president Amy Gutmann tells students and staff says the school, Philadelphia's largest private employer, has curbed spending in an effort to stay affordable affordable to families who can't afford the whole $50,000-a-year-plus price tag. Item in the Daily Pennsylvanian here. Excerpts from Dr. Gutmann's note:

"We announced today the lowest tuition increase in more than 40 years: 3.75 percent for the 2009/10 academic year... We will be expanding our financial aid budget by $17.6 million, or 15 percent," and keeping a promise to give grants instead of loans. Though even 3.75% is higher than the consumer price index inflation rate.

Gutmann continued: "You may recall the measures announced in my December letter.... Cost cutting measures, which will remain in effect through June 2010, are projected to save Penn approximately $57.7 million."

At the School of Medicine, that meant a budget freeze "which will save approximately $100 million." At Wharton, that meant putting off $5 million in "small capital projects... Arts and Sciences, Engineering, Wharton, Medicine, and Veterinary Medicine  are reducing current payroll...

"Governor Rendell's recently announced proposed FY10 Commonwealth budget... includes a 10 percent cut to Penn's annual appropriation.  This cutback places intense pressure on Penn Vet, our State's only school of veterinary medicine, which relies on Commonwealth support for approximately 35 percent of its revenues. It also will strain our Health System, School of Dental Medicine, and Penn Museum..."
 
Better news: "We have raised $2.3 billion... of our $3.5 billion goal of our Making History campaign...
 
"The recently enacted $789.5 billion American Recovery and Reinvestment Act provides more financial assistance and tax credits for college students and their families, and billions of dollars more for scientific research – with $10.4 billion targeted over the next two years for the National Institutes of Health and $3 billion more for the National Science Foundation... Penn is very well positioned to capture our share."
Posted by Joseph N. DiStefano @ 6:54 PM  Permalink | Post a comment
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About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column in the Philadelphia Inquirer. Joe has been a member of Bloomberg LP’s New York Finance Team, wrote the book “Comcasted,” taught writing at St. Joseph’s University, and studied economics and history at Penn. Reach Joe at 215-854-5194 and JoeD@phillynews.com
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