By SUSAN JONES

Pennsylvania lawmakers passed and Gov. Josh Shapiro signed a $50.8 billion budget on July 12 that includes $10 million in performance-based funding to be split between Pitt, Penn State and Temple.

Pitt’s base funding will remain the same as it has been since 2019 — $151.5 million — along with $3.98 million for rural education outreach.

“The University of Pittsburgh thanks the General Assembly and Gov. Josh Shapiro for their continued support and for their commitment to Pennsylvania’s students and workforce,” a University spokesperson said. “We look forward to strengthening our partnership with the legislature and the governor’s office as we work together to deliver on the commonwealth’s priorities.”

In his budget request, Shapiro had asked for $30 million in performance-based funding, and the House had approved that amount. But the final number agreed to was $10 million.

At last week’s Board of Trustees meeting, Dwayne Pinkney, executive senior vice chancellor for administration and finance, said that Pitt’s budget, which was passed by the board on July 10, assumes “an appropriation equal to last year’s, along with $7.5 million in performance-based funds.”

With only a total of $10 million approved for the performance-based fund, Pitt is highly unlikely to receive three-quarters of that. It was unclear how that would impact the just-passed Pitt budget.

"The University of Pittsburgh’s operating budget for the 2027 fiscal year reflects a conservative approach to budgeting,” a University spokesperson said. “ As such, we have contingency plans in place that are designed to minimize the impacts to our community while ensuring Pitt can continue to deliver world-class education and research."

The performance-based money will be distributed based on a set of metrics that include the number of in-state students at each school,  four- and six-year graduation rates, six-year Pell-eligible graduation rates, high-priority occupation degree production, improved college affordability, transfers from community colleges, and enrollment from underrepresented high schools.

Pinkney stressed that all the money Pitt receives from the state is used “to provide 18,000 Pennsylvania students with an in-state tuition discount. … It does cover approximately 70% of the in-state tuition discount, while Pitt covers the remainder.

“Any impacts to the Commonwealth appropriation would impact our ability to continue to provide that level of support,” he said. “Of course, we would have to to find that support to continue to keep our commitment and to continue to support access and affordability.”

He also said that “as a percentage of the total $3.3 billion dollar budget, one might look at that and hastily conclude that it is not as significant as it is. It is very significant. Were we to try to replace that commonwealth appropriation, we would need an endowment of over $5 billion, probably more in the neighborhood of five and a quarter billion dollars.”

Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.

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