BoT Investigating PSU’s Pessimistic Budgeting

Loyal readers of this member news may recall that we have been talking about PSU’s pessimistic budgeting for years [1].

We were very happy to hear at the Board of Trustees meeting that they, too, have become concerned about why PSU consistently overestimates expenses and underestimates revenue. For example, we know that PSU budgets for all theoretical positions whether they are filled or not, even when they know a position isn’t filled for a whole year. This obviously inflates the expected expenditures. 

We welcome the BoT’s investigation, and hope that they will use an open and transparent process in doing so. It is critical that the Board actively engage with multiple constituencies in this process. 

[1] For those of you who may be newer to these newsletters, or want to revisit some of our past writing, here are a few places to start:
     - November 2019: How to Make Sense of Interim President's Gloom and Doom  
     - March 2020: Today, PSU Budget Pessimism Part 3 
     - October 2020: Don't Believe Everything You Hear! 
     - January 2021: University Predicts Budget Doom and Gloom, But We Have Questions