Harrisburg – The Pennsylvania State System of Higher Education’s (PASSHE) Board of Governors today voted to increase tuition by $139, or 2.75 percent, for the 2007-08 academic year.

The new tuition rate for full-time, resident undergraduate students beginning this fall will be $5,177 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 provide an exceptional educational value to students in Pennsylvania,” said Board of Governors Chairman Kenneth M. Jarin. “We strive to offer our students a high quality, affordable education. This modest tuition increase will allow us to continue to do so.”

Despite rising cost pressures, PASSHE has been able to hold tuition increases to about half the average imposed by public universities and university systems across the United States over each of the past four years. This year’s increase – which, for the third consecutive year will be about rate of inflation – likely will continue that trend.

The Board also approved a $50-a-year increase in the tuition technology fee for 2007-08. Full-time resident students, both undergraduate and graduate, will pay $175 for the full academic year. Full-time, non-resident students will pay $264. 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 $43-per-term technology tuition fee. Part-time, nonresident students will pay $65 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 Board of Governors also finalized PASSHE’s 2007-08 operating budget, which totals slightly more than $1.3 billion. PASSHE will receive nearly $484 million from the Commonwealth to support its basic operations this year, an increase of $16.4 million, or 3.5 percent more than it received in 2006-07. The State System also will receive an additional more than $20 million in separate funding to help support a variety of special programs, including performance funding, diversity initiatives and teacher excellence.

The Board of Governors approved using nearly $9.7 million of the special funding to support PASSHE’s seven-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 2007-08. The program has helped boost both graduation and student retention rates across the System and make a variety of other improvements.

“Performance funding has helped drive significant improvement across all of our universities,” said Chancellor Judy G. Hample. “It has been an important component in our effort to enhance the quality of education we offer all of our students.”

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

• $5 million to support the continued development of PASSHE’s integrated information system.

• $1.8 million for economic development initiatives to benefit the Commonwealth.

• $1.6 million for diversity and equal opportunity programs.

• $1.5 million for programs to enhance the quality of 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 2007-08 will be $6,214, an increase of $166. Nonresident graduate tuition will increase by $266, to $9,944. Full-time, nonresident undergraduate student tuition will range from $7,766 to $12,944, depending on a variety of factors, including the university and program in which a student enrolls.

The total cost of attendance for a resident student who resides on campus during the 2007-08 academic year, including tuition, required fees, room and board, will average about $12,500.

With more than 109,000 students, the Pennsylvania State System of Higher Education is the largest provider of higher education in the Commonwealth.The 14 PASSHE universities offer degree and certificate programs in more than 120 areas of study. Approximately 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.