Although Penn State has cut costs in a number of ways — with a “strategic hiring freeze” and a 3% rescission, or across-the-board cut — rising costs and surging inflation have helped to reduce gains from additional revenue. Still, with this fiscal year’s budget, the university’s general funds deficit is projected to shrink about 25% to $149 million, which will be funded by reserves. Penn State President Neeli Bendapudi previously said she expected to balance the university budget by the summer of 2025.
