2020 University Budget Update

Dear Pitt Community Members:

Earlier today, members of our Board of Trustees, acting through the Board’s Executive Committee, convened and approved the University of Pittsburgh’s operating and capital budgets for fiscal year 2020.

These actions, which are consistent with the recommendations of the University Planning and Budgeting Committee, follow the completion of the commonwealth’s appropriation to the University, which includes a 2% increase in support for Pitt.

I am extremely grateful that leaders in Harrisburg have—once again—voted to strengthen their investment in Pitt and, in turn, our commonwealth’s future.

To recap a few highlights, this year’s budget:

• Establishes a $2.4 billion operating budget (up from $2.3 billion in 2019), which enables us to continue investing in vital areas—such as research, academic excellence and economic development. These funds also reflect a seminal investment in our students—the launch of the Pitt Success Program, including the federal Pell Match option—following the most significant restructuring of financial aid in our university’s history.

• Establishes a $641 million capital budget (up from $340 million in 2019), which will fund a range of construction and renovation projects during the first full year of our campus master plan’s implementation.

• Sets the tuition rates for the 2019-2020 academic year. On our regional campuses: Tuition will increase by 2% for all students, both in-state and out-of-state. On our Pittsburgh campus: Tuition will increase by 2.75% for in-state undergraduate students and 5% for out-of-state undergraduate students. The two exceptions on this campus—where undergraduate tuition rates will be slightly higher—are in our Swanson School of Engineering and our School of Computing and Information.

• Includes an $874 million projected research base (up from last year’s record-breaking research base, which is projected at $866 million). This persistent uptick in external support further strengthens Pitt’s position as a global leader in research and innovation.

• Reflects more than $12 million in cost savings, evidence of the University’s strong culture of accountability and effective use of resources.

• Provides for salary increases for eligible faculty and staff. Later this afternoon, Senior Vice Chancellor and Chief Financial Officer Hari Sastry will send a message to all Pitt faculty and staff to provide more details on these increases.

Sincerely,

Patrick Gallagher