The Pennsylvania State System of Higher Education (PASSHE) will receive a record $483 million in state funding as part of the 2006-07 budget passed by the General Assembly and expected to be signed by Gov. Edward G. Rendell.

The new General Fund Budget includes $467.6 million in base funding for PASSHE and the 14 state-owned universities. The $22.3 million, or 5 percent, increase in funding to support the universities’ daily operations represents the largest percentage increase for PASSHE in nearly a decade.

The budget also includes an additional $19 million to support a variety of special initiatives, including performance funding, teacher education programs and diversity and equal opportunity efforts.

“The action of the General Assembly and the support of the Governor represents a strong endorsement of our universities and the mission they serve,” said PASSHE Board of Governors Chairman Kenneth M. Jarin. “By approving the largest increase in more than a decade, an increase first proposed by Governor Rendell, has demonstrated its commitment to public higher education and its recognition of the outstanding job PASSHE is doing.”

PASSHE’s Board of Governors has proposed a 2006-07 operating budget of $1.23 billion, of which the state appropriation would cover about one-third. Student tuition and fees will cover most of the rest. The Board will meet next month to set tuition rates for next year.

“We are committed to providing our students with a high quality, affordable education,” Mr. Jarin said. “The Commonwealth’s strong support will help ensure we can continue to meet our dual mission.”

PASSHE projects its overall costs will increase next year by about $51 million. The largest increases will be in the areas of salaries, wages and employee benefits, which are expected to increase by a combined 4.7 percent.

Growing enrollment also has added to the cost pressures facing PASSHE. Since 2000-01, enrollment at PASSHE Universities has increased by nearly 12 percent, with seven Universities reporting record enrollments in Fall 2005. Over that same time, PASSHE’s state appropriation actually has declined. The System received about $5.4 million less from the state this year than it did five years ago. The new budget will boost state funding to PASSHE to an all-time high in 2006-07.

PASSHE Universities have implemented numerous cost-saving measures in recent years to help keep costs down. By limiting expenditures and improving productivity levels, the Universities have become more efficient, enabling them to reallocate $163 million in cost “savings” to key program areas. Cost saving initiatives have included consolidating operations in areas such as administrative computing, employee benefits management, construction services and distance education; developing collaborative academic programs in nursing, urban education, math and science education, athletic training and foreign languages; and streamlining academic offerings and graduation requirements. Most recently, PASSHE began entering into strategic sourcing initiatives that are expected to save about $8 million over the next two years.

“The Universities have worked extremely hard to control their costs while at the same time enhancing educational opportunities available to students,” said PASSHE Chancellor Dr. Judy G. Hample. “Our universities today are more efficient while more of our programs are accredited than ever before, a clear demonstration of improved academic quality.”

With more than 107,000 students, the Pennsylvania State System of Higher Education is the largest provider of higher education in the Commonwealth. The 14 PASSHE universities offer more than 250 degree and certificate programs in more than 120 areas of study. More than 405,000 PASSHE alumni live and work in Pennsylvania.

The state-owned universities are Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock, and West Chester Universities of Pennsylvania. PASSHE also operates branch campuses in Clearfield, Kittanning, Oil City and Punxsutawney and several regional centers, including the Dixon University Center in Harrisburg.