The Pennsylvania State System of Higher Education’s (PASSHE) Board of Governors today voted to increase tuition by $132, or 2.7 percent, for the 2006-07 academic year.

The new tuition rate for full-time, resident undergraduate students beginning this fall will be $5,038 for two semesters– the lowest rate among all four-year colleges and universities in Pennsylvania.

“The Pennsylvania State System of Higher Education will continue to offer a tremendous educational value to all of our students,” said Board of Governors Chairman Kenneth M. Jarin. “With tuition at about $5,000, our universities offer education that is both affordable and of high quality.”

Despite rising cost pressures, PASSHE has been able to hold tuition increases to about one-third the average imposed by public universities and university systems across the United States over each of the past three years. This year’s increase is likely to continue that trend.

PASSHE received its largest boost in base funding from the Commonwealth in nearly a decade when the Legislature earlier this month approved and Governor Edward G. Rendell signed the 2006-07 Commonwealth budget. PASSHE will receive $467.6 million from the Commonwealth to support its basic operations this year, an increase of $22.3 million, or 5 percent more than it received in 2005-06.

“The Governor and General Assembly have demonstrated their strong support for the State System and for the important role our Universities play in the Commonwealth,” Mr. Jarin said. “We are grateful for that support.”

The increased funding from the Commonwealth, combined with PASSHE’s ongoing efforts to control its costs, have enabled the State System to keep tuition increases to a minimum in recent years. Those efforts have included negotiating limited employee wage increases and significant changes to health benefits, implementing energy savings initiatives and taking advantage of the Rendell Administration’s strategically sourced contracts to secure lower prices. Over the past five years, these cost- containment initiatives have reduced base costs across the System by more than $163 million.

“PASSHE is deeply committed to keeping tuition as affordable as possible, while working just as hard to enhance the quality of education our students receive,” said Chancellor Dr. Judy G. Hample. “While engaging in a variety of cost-containment initiatives, our Universities also have realigned and redesigned their academic programs to meet the changing workforce needs of the Commonwealth and to ensure our graduates are well prepared for success.”

In addition to the base appropriation, PASSHE will receive more than $20 million in separate funding from the Commonwealth this year to help support a variety of special programs, including performance funding, diversity initiatives and teacher excellence.

The Board of Governors approved using $9.4 million of that special funding to support PASSHE’s six-year-old performance funding program, which encourages and rewards the Universities for demonstrating success and continued improvement in key areas related to student achievement, University excellence and operational efficiency. The special funding will be combined with a portion of the base appropriation to make available a total of $37.4 million for performance funding in 2006-07.

The remainder of the special funding will be allocated as follows:

• $7.3 million to support the continued development of PASSHE’s integrated information system.
• $1.6 million for diversity and equal opportunity programs.
• $1.35 million for programs to enhance the quality of teacher education programs in the Commonwealth.
• $216,000 to help support the operation of the McKeever Environmental Learning Center, which is operated by Slippery Rock University of Pennsylvania on behalf of the Commonwealth.
• $368,000 for the operation of the Pennsylvania Center for Environmental Education, which also is located at Slippery Rock.

The Board also set new tuition rates for resident graduate students and all nonresident students. The resident graduate tuition rate in 2006-07 will be $6,048, an increase of $160. Nonresident graduate tuition will increase by $256, to $9,678. Full-time, nonresident undergraduate student tuition will range from $7,558 to $12,598, depending on a variety of factors, including the university and program in which a student enrolls.

The technology tuition fee will remain the same next year. Full-time resident students, both undergraduate and graduate, will pay $125 for the full academic year. Full-time, non-resident students will pay $188. Part-time resident students – undergraduate students taking fewer than 12 credits and graduate students taking fewer than nine credits – and those who attend summer classes will pay a $31-per-term technology tuition fee. Part-time, nonresident students will pay $47 per term.

All funds raised by the technology tuition fee are used to directly benefit student learning. Universities have used the funds to install new computer labs and to design multi-media classrooms, among other projects.

The total cost of attendance for a resident student who resides on campus during the 2006-07 academic year, including tuition, required fees, room and board, will average about $12,000.

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, Freeport, Oil City and Punxsutawney and several regional centers, including the Dixon University Center in Harrisburg.