Pennsylvania’s flagship public university has ordered a hiring freeze at least through next summer as it and other higher education institutions confront spiking inflation and public fallout over tuition hikes aimed at easing strain on campus budgets.
Penn State University confirmed the move late Monday, days after leaders announced a planned rescission in the school’s 2022-23 operating budget of 3%, or $46.2 million. The decision, like a tuition hike approved July 22, was aimed at helping the university narrow a growing operating deficit.
Inflation is running above 9%. Leaders say that has exacerbated financial and enrollment stresses caused by factors like the pandemic.
Commonwealth funding to the state-related universities including Penn State and the University of Pittsburgh has remained flat, although a one-time infusion of federal stimulus funds sought by Gov. Tom Wolf yielded a 5% increase this summer.
Republicans in the House and Senate, among them state Sen. and Republican gubernatorial nominee Doug Mastriano, urged a rollback of those increases in light of the one-time aid.
“This strategic hiring freeze is one tactic among many being taken to help meet the objective of a balanced budget by the summer of 2025, which requires the University to save an estimated $250 million,” Penn State officials said in a statement Monday.
The freeze will not affect positions needed for safety, student success and compliance, among others, officials said.
On July 22, Penn State trustees raised tuition by 5% for in-state undergraduates at University Park and 6% for non-Pennsylvanians. The prices also include a hike on the commonwealth branches of 2% for in-state undergraduates and 3% for those from out of state.
Leaders pledged no increase in out-of-pocket tuition costs for students in households making $75,000 or less, provided they are eligible and have submitted forms required for financial aid, including the Free Application for Federal Student Aid. Penn State officials say they have increased student grants by $14 million to further that goal.
Penn State enrolls about 89,000 students on its campuses, including the main University Park location. It has 33,545 employees systemwide, which including nearly 6,500 full-time faculty, according to university data.
The temporary “strategic hiring freeze” does not apply to students, graduate assistantships or positions that are fully funded by external grants or contracts.
“Current searches to fill open positions will need to be paused with some exceptions for critical positions,” officials said in the university statement. “Hiring managers with an open position that they believe is critical should discuss the position, unit needs and budget with their unit leader and Human Resources representative.”
The Penn State tuition increase is about half the current inflation rate, although it remains the largest price hike in recent years. The school had frozen tuition three of the four previous years.
The hiring freeze was first reported Monday afternoon by the Centre Daily Times and radio station WPSU, a PBS and NPR Member station and a service of Penn State Outreach.
Bill Schackner: bschackner@post-gazette.com, 412-263-1977 and on Twitter: @Bill Schackner
First Published: August 1, 2022, 9:39 p.m.
Updated: August 2, 2022, 10:53 a.m.