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COUNCIL
April 3, 2007, Volume 53, No. 28

Fiscal Year 2007 Budget: Report to University Council



Concerns and Kudos

At the beginning of the March 28 Council meeting, before the scheduled reports on the FY 2007 Budget and Information Technology, President Amy Gutmann addressed the recent situation that occurred on campus involving the Department of Public Safety and a Penn student. Dr. Gutmann said it was important to know all the facts surrounding the incident and she was looking forward to the DPS Report. She added, “Students, faculty and administrators are also engaged in an open and forthright dialogue about their concerns about safety and perceptions of race relations and police practices in our diverse urban university environment.” She concluded, “Racial profiling and racial discrimination have no place at Penn.  I encourage everyone to work with us to ensure that our campus is a welcoming, respectful, and safe place for people of all races and all backgrounds.”

Brett Thalmann, UA chair, echoed the President’s sentiment about strengthening mutual respect and added that the UA had passed a “Statement of Concern” and the UA will work with the DPS to continue the productive, open dialogue that they have had over the years. UMC Chairwoman Efe Johnson, urged “accountability” on these University-wide issues.

The President then gave kudos to the Penn Men’s Basketball team which once again won the Ivy League Championship, as it has done for each year of her presidency, and went on to what she described as “a fine showing against Texas A&M” in the NCAA Tournament.

Dr. Gutmann said that the Senior Class is on target to reach its 60% target goal, which is demonstrating the class spirit of the Class of 2007. The Capital Campaign launch will take place on Saturday, October 20, during Homecoming weekend. She said that Penn’s Commencement Speaker James Baker, who co-chaired the Iraq Study Group, will share his perspective with graduates next month.

Dr. Gutmann thanked Dr. Stanton Wortham for serving as GSE’s interim dean this year. GSE’s incoming dean Dr. Andrew Porter will deliver the Bodek Lecture, Providing the Opportunity to Learn: Standards, Policies and the Achievement Gap, on April 19 at 4:30 p.m. at the Inn at Penn.

Council members had a chance to see the three new TV spots featuring Penn alumni: 1891 alumnus John Heisman, namesake of the trophy; Trustee Andrea Mitchell, CW ’67, NBC’s chief foreign affairs correspondent; and Grammy-winning musician John Legend, C ’99. Although the network did not air any such spots this year during the NCAA basketball games, they had been aired in prior years; they might air during the Penn Relays later this month and are already on YouTube.com.

Fiscal Year 2007 Budget

The annual reports of the President and Provost consisted of a report on the Fiscal 2007 Budget and the Fiscal 2008 Undergraduate Charges by Bonnie Gibson, vice president for budget and management analysis, followed by a report on Student Systems and Services: Recent and Planned IT Initiatives by Robin Beck, vice president of ISC.

Ms. Gibson reported that there has been a positive variance in the past three years (FY ’04–FY ’06) of Resource Center Management (RCM) performance. For the FY ’07 Operating Budget, expenditures totaled $4.77 billion, including $2.43 billion for the academic component and $2.34 billion for the Health System. The academic budget (see pie charts) is up 8.5% compared to the FY ’06 forecast. It includes $275 million in undergraduate and graduate student aid, up 8.9% over the FY 2006 budget.

For FY ’06, the Sponsored Programs totaled $773.7 million with 80% of that, or $621.5 million, from federal sources such as NIH and NSF.Concerning the FY ’08 undergraduate charges, the total will increase 4.9% to $46,124. based on the average standard room and the freshman meal plan (see last week’s issue). In comparison to Penn’s peer institutions, it is expected that the University’s charges will be near the center of the schools, although some have not yet announced their charges. The average grant-aided freshman package consists mostly of grants with only a small loan and job component, so that the average debt at graduation is down slightly compared to the past three years. The endowment support for undergraduate aid is up 132% since 2002.

 

 

 

FY 2007 Academic Budget Total Revenue and Transfers by Source

 

Sponsored Programs: Direct and Indirect Cost Recovery

FY 2007 Academic Budget Expenditures by Expense Type

 

FY 2007 Financial Aid Budget ($M)



FY 2007 Academic Budget Expenditures by Responsibility Center Category

 

 

FY 2007 Academic Budget Expenditures by School

 

Projected Fiscal Year 2008 Peer Institution
Undergraduate Total Charges Comparison

 

 

 

FY2007
Total

FY2008
Total

% Change
vs. FY2007

$ Over
(Under) Penn

Georgetown

$45,068

$47,656

5.7%

$1,532

NYU *

45,200

47,279

4.6%

1,155

Chicago

44,613

47,007

5.4%

883

Johns Hopkins

44,522

46,992

5.5%

868

Columbia *

44,814

46,875

4.6%

751

Washington

44,602

46,776

4.9%

652

Northwestern

43,825

46,205

5.4%

81

Penn

43,960

46,124

4.9%

0

Cornell

43,707

45,989

5.2%

(135)

Brown

43,754

45,948

5.0%

(176)

Stanford

43,631

45,878

5.2%

(246)

Harvard

43,655

45,620

4.5%

(504)

Dartmouth

43,341

45,483

4.9%

(641)

M.I.T.

43,550

45,386

4.2%

(738)

Duke

43,154

45,121

4.7%

(1,003)

Yale *

43,050

45,030

4.6%

(1,094)

Princeton

42,260

44,040

4.2%

(2,084)

 

 

 

Recent Financial Aid Initiatives

•  Undergraduate Financial Aid:  $2.8M per year
    –  Allowed outside scholarships to supplement rather than replace Penn aid
    –  Increased allowance for incidental expenses for low-income students
    –  Replaced summer savings with grant for low-income students
    –  Replaced loan with grant for students from economically-disadvantaged families with incomes under $50,000
•  Graduate Financial Aid:  $2.2M per year
    –  Increased graduate stipends by 11% in 2006 and 2.9% in 2007.
  The base stipend increased from $15,750 in 2005 to $18,000 in 2007.
    –  Increased the number of summer stipends available by 70


New Financial Aid Initiatives

•  No-loan packages to be extended to high need students with family incomes of $60,000 or less
     –  Increase of $10,000 over current year
     –  Will impact 213 students (in addition to the 283 students who benefited at the $50,000 level)
•  Make investments to deepen and broaden our communications around need-based aid

 

Summary

•   We have a history of outperforming our budgets
•   FY2007 Academic Operating Budget of $2.43B
•   66% of Revenue comes from Sponsored Research and Tuition
•   80% of our research funding comes from federal government sources, which have been stagnant or declining
•   At June 30, 2006, our endowment was $5.31B (in 11th place), while endowment per student was $252,029 (65th place)
•  Recently our endowment crossed the $6B level
•  Our total financial aid budget (undergraduate and graduate) is over $270M
•  FY2008 UG Total Charges will increase 4.9%
•  No-loan aid packages will be extended to students from high-need families with incomes under $60,000 per year

 

Student Systems and Services: Recent and Planned IT Initiatives

Robin Beck’s presentation on Student Systems and Services: Recent and Planned IT Initiatives covered the expectations of the Penn community as well as the University’s response, including recent initiatives and current plans for the upcoming years as Penn looks toward the future of Internet-based information systems. There is an abundance of social interaction available through the Internet which has an impact on learning, research, and the administrative functions. The self-service features challenge the University’s ability to ensure integrity of infrastructure and data security, and at the same time ensure the consistent, reliable operation of systems and services while planning for and developing the next generation of core student systems. Penn has a multi-layered policy for security and compliance to protect systems from malware. The technology in 25 central pool classrooms has been refurbished. The Online Grade Reporting will be rolled out this month. Other new initiatives include Penn.Pay Electronic Billing and an Advanced Placement interface to streamline recording AP scores into the Student Records System. There are plans to refresh Penn In Touch, which was launched more than a decade ago, as well as the Penn Portal, beginning with the underlying technology. There are plans to enhance Blackboard to make course setup easier for faculty.

Almanac - April 3, 2007, Volume 53, No. 28