Penn State University Trims Board Meeting Costs While Facing Budget Deficits
In a recent analysis conducted by Spotlight PA, Penn State University has demonstrated a commitment to reducing expenses related to its Board of Trustees meetings. This follows a 2022 report highlighting the board’s significant spending during challenging budgetary times. Since reaching a peak of nearly $91,000 per meeting in fiscal year 2016, the average costs have dipped to approximately $51,200 in fiscal year 2023 and $52,100 in 2024, adjusted for inflation.
Although trustees are not salaried, the university compensates them for expenses such as travel, lodging, and meals. The board convenes for five two-day meetings yearly, mostly in State College. Despite inquiries regarding specific cost-saving measures, the university’s Office of Strategic Communications has not provided a response.
Spotlight PA’s analyzed spending reports reveal that food and lodging remain the largest expenses. For instance, the $39,170 spent for housing trustees during the September meeting surpassed the total lodging costs from the previous three meetings, possibly attributed to the meetings being scheduled during home football games, which inflate hotel prices in the area.
Recent reception dinners also raised eyebrows, with costs nearing $22,000 in May 2023 and over $16,000 in July 2023, leading to increased scrutiny of the board’s financial activities. The heightened attention comes on the heels of Penn State’s reported budget deficit exceeding $150 million, prompting significant financial reforms, including a partial hiring freeze and workforce buyouts, with a target to stabilize the budget by summer 2025.
In light of these developments, the Pennsylvania auditor general had called for more transparency, recommending “per trustee” expense reports. While Penn State has considered this suggestion, no changes have yet been implemented.
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