N O T I C E I N T H I S I S S U E The July 23 issue of the University Compiling Pitt’s academic calendar Times will be the last issue of the is a lot more complicated than it might seem.......................................3 summer term. Publication will resume on Sept. 3. Pitt still is cleaning up from last U N I V E R S I T Y month’s heavy rain storms................5 TIMES VOLUME 41 • NUMBER 22 JULY 9, 2009 UNIVERSITY OF PITTSBURGH Outlook for state funds bleak City plan s Chancellor Mark A. intended to restore state spending Nordenberg enumerated cuts to higher education is a total could be APitt’s recent and ongo- Chancellor reports on budget of $16 billion for research, includ- ing fiscal challenges at the June ing $10 billion for the National 26 Board of Trustees meeting, Institutes of Health. Nordenberg more bad news for Pitt was being troubles at trustees meeting noted that the research dollars costly for released in the state capital. are aimed not only at scientific In a midday press conference, although he stated in a prepared school districts.) advances, but to bring economic Gov. Edward G. Rendell was release that the application “can Rendell had announced in recovery to the communities in University announcing a new round of pro- be amended when the final state March that he would direct $42 which they are spent. ast week’s approval by posed budget cuts that included an budget is enacted.” million of the state’s share of Pitt faculty have submitted Pittsburgh City Council additional 13 percent reduction in (Of Pennsylvania’s 2009-10 federal economic stimulus funds more than 1,000 grant applica- and Mayor Luke Ravens- support for state-related universi- allocation of $953 million in stim- to restore planned budget cuts tions for funding under the federal L tahl of the five-year roadmap to ties Pitt, Penn State, Temple and ulus funds, according to a release to the state-related universities’ stimulus program, including more steady the city’s shaky finances Lincoln University. from the governor’s office, the FY10 appropriations. (See March than 800 to NIH, Nordenberg potentially could cost Pitt some His revised proposal would June 26 application sought $173 5 University Times.) said. “Pitt is well positioned to major bucks. appropriate $140 million for Pitt million in general budget relief; Nordenberg told the trustees, spur growth by bringing sizable The new Amended Recov- — nearly $20.5 million less for $418 million for the second year “Key underpinnings of the pres- shares of those dollars back into ery Plan, mandated by a state- fiscal year 2010 than he originally of Pennsylvania’s school funding ident’s federal stimulus package our home state and our home appointed oversight board proposed in February. formula; $77 million to restore clearly are grounded in a belief region,” he said. under the Municipalities Finan- Rendell also announced that proposed cuts to the State System in the positive powers of higher “There is increasing demand cial Recovery Act 47, has the state-related universities would of Higher Education, community education,” noting that the plan both for high quality education authorized the city to pursue not be part of Pennsylvania’s appli- colleges and Thaddeus Stevens includes grants, work-study fund- and for cutting edge research several new revenue-generating cation for federal stimulus State College of Technology, and $285 ing and tax credits for students. — our most basic products.” options, including legislating a Fiscal Stabilization Fund money, million in one-time grants to In addition to the funds CONTINUED ON PAGE 7 0.55 percent payroll tax on the city’s non-profit institutions, and levying a $50 per under- Impact on Pitt of potential cuts is unclear graduate student, per semester surcharge. s state budget debates and executive committees have announced a tuition freeze at our as we earlier had hoped.” These and other options continue in Harrisburg scheduled a July 16 meeting at regional campuses and also had Citing the University’s belt- — including as a last resort Aand Pitt’s share of antici- which, administrators have said, declared our intention to keep tightening that included pay raising property or other taxes pated federal economic stimulus 2009-10 tuition rates will be tuition increases at the Pittsburgh freezes, budget cuts, hiring restric- — are proposed to make up an funding remains in question, announced. campus as low as possible. That tions and a slowdown in the pace of expected $10 million-$14 mil- financial uncertainty is on the In his update, posted at www. remains our goal, but in our cur- capital projects over the past year, lion annual shortfall in the city’s rise at Pitt. chancellor.pitt.edu, Norden- rent circumstances what now is Nordenberg stated, “Though this worker pension fund commit- In addition to Gov. Edward G. berg stated, “We already had possible will not be nearly as low CONTINUED ON PAGE 7 ment, city officials said. Rendell’s assertions that Pitt and The city’s coffers have in its fellow state-related universities hand less than a third of the should not be included among nearly $900 million in pension public institutions of higher edu- Some retention bonus $ donated fund legacy obligations for the cation for the purpose of receiving he June 30 end of the by the trustees’ compensation would be no salary pool increase 3,200 city employees, according federal economic stimulus fund- University’s fiscal year committee, was established after for fiscal year 2010, which began to the recovery plan approved ing, additional budget cuts he Tcontinues to trigger reten- a consultant’s 2002 review found July 1. (See March 5 University by a 6-3 council vote and signed proposed on June 26 would lop tion incentives for Chancellor Pitt officers’ compensation low in Times.) by Ravenstahl June 30. The plan another $20.5 million from Pitt’s Mark A. Nordenberg and three comparison to a group of research The trustees’ compensation covers fiscal years 2010-2014. state appropriation on top of an University officers. university peers. committee typically sets officers’ Gov. Edward G. Rendell $11.35 million reduction already Under an extension of the Rather than implement a compensation in December, declared Pittsburgh a distressed imposed in fiscal year 2009. Board of Trustees’ 2002 retention salary increase, said Hill, “The retroactive to the start of the municipality in December 2003. Chancellor Mark A. Norden- incentive pay plan, Nordenberg committee decided that it was fiscal year. Last December, on A team of state-named financial berg stated in a July 7 University will receive $75,000 because he in Pitt’s best interest to make Nordenberg’s recommendation, managers and attorneys work- Update that the governor’s current has remained in his position for the adjustment through deferred the committee froze officers’ FY09 ing under Act 47 has overseen recommendation (of just over another year. Executive Vice retention incentive payments tied pay at FY08 levels. (See Dec. 5, the city’s financial affairs since $140 million for Pitt) would cut Chancellor Jerome Cochran, to continuing service. That deci- 2008, University Times.) City Council adopted the initial the University’s appropriation by Senior Vice Chancellor and Pro- sion was grounded in the belief “The officers and compensa- five-year recovery plan in June more than $30 million “to a point vost James V. Maher and Vice that a board priority should be tion committee are moving for- 2004. several million dollars beneath Chancellor for Budget and Con- the retention of the University’s ward with the shared expectation The approved successor its 1995 level, when our enroll- troller Arthur G. Ramicone each already experienced and accom- that the salaries will continue to be plan (available at www.city. ment was well over 2,000 stu- receive $50,000 under the plan. plished leadership team.” frozen in FY 2010,” Hill said. pittsburgh.pa.us/council/ dents smaller, when our research While the retention plan Absent an action from the Hill noted that the officers’ assets/09_Amended_Recov- enterprise was not much more remains in place, Vice Chancel- compensation committee, the plan FY09 pay was frozen at FY08 ery_Plan_May20.pdf) lists as the than one-third its current size lor for Public Affairs Robert Hill continues indefinitely. levels, while other employees’ first alternative hiking the city and when costs generally were stated, “Given the challenging Officers’ compensation is not pay was frozen at FY09 levels, employment (EMS) tax from much lower. economic environment, some of set at the same time the salary pool adding, “The committee took no $52 to $145 annually and/or “The simple math leads to an the involved officers, including the for other Pitt employees is set. action with respect to its retention expanding the city payroll tax to inescapable conclusion — by any chancellor and the provost, have Typically, the salary pool increase incentive program, recognizing the city’s non-profits, including measure, this is a dramatic reduc- chosen to use their retention pay- is announced after a state budget that those payments have not Pitt. Both actions require the tion, and it would have a marked ments to make new commitments is passed and the trustees, in turn, been increased since the program’s state legislature’s approval. effect. That impact may first be to the University’s ongoing capital set the University budget. inception in 2002, meaning that If those actions are not seen when Pitt and the other state- campaign. They have done so with However, last March, on the the retention component of officer authorized by the state, the Act related universities set tuition rates a focus on student support, which recommendation of the University salaries already has been frozen for 47 recovery plan recommends later this month.” is a priority of that campaign.” Planning and Budgeting Commit- several years.” The Board of Trustees budget The retention plan, overseen tee, Nordenberg announced there —Kimberly K.