PASSHE Institutions Merging

[Sec10-A-14]

The State needs to get real and not keep throwing good money after. They should get real stand up & close non-productive schools.
Sometimes you have to go thru the pain to effect the cure. I know after a 17month battle with cancer & still at least a yr to get back
to normal, if ever. Then again when you think of the alternative you say hell yes let's go for it.

[Fightingscot82]

There is a small number that have basically little to no reserves. Like 2-3ish. The Integration presentations had a lot of good metrics. Like they look at which schools have less than 6 months cash on hand, etc. It was a surprising number. They largely learned from Chaney. When you start to hit the end point of failing, the last part of the demise goes very quick. Thus, why they rushed through these Integrations.

College revenue is essentially 6 months at a time so 6 months cash on hand sounds reasonable. My best friend is a university finance expert so I'll ask him if there's a benchmark.

[Fightingscot82]

The State needs to get real and not keep throwing good money after. They should get real stand up & close non-productive schools.
Sometimes you have to go thru the pain to effect the cure. I know after a 17month battle with cancer & still at least a yr to get back
to normal, if ever. Then again when you think of the alternative you say hell yes let's go for it.

They won't do that because its political suicide to kill rural jobs - and to go against research that a lot of students served by PASSHE need physical/geographical access.

Its about politics. The parties only seem to introduce legislation to agitate the other or vote to obstruct/oppose anything simply because the other party supports it. If you don't want to play the DNC/RNC game in this country you're screwed. All legislative power in Washington or Harrisburg is controlled by either party. Moderates or pragmatic thinkers are viewed as impotent.

There's a state rep on the PASSHE board who is extremely critical of education spending. He's always posting per-student costs for school districts and upset about tuition increases at PASSHE. But the guy has done nothing to either identify efficiencies or additional funds that would lower costs to the schools or students. Meanwhile, per-student spending at his alma mater, Gannon, is higher than at Edinboro, which his gerrymandered district circumvents. Same guy has also fought to keep regional state prisons open as well as the antiquated state mental hospital in Polk, PA. The difference is the employees of Edinboro (many live in his district) are largely Democrats and the employees of Polk Center and the SCIs in Albion, Cambridge Springs, and Marienville are largely Republican.

[complaint_hopeful]

Little/no reserve is close to the end state, but these schools didn't get to that point in their financial viability arc in one year. You could probably go back several years and see their progress as they burn through their reserves. Question is, which other PASSHE schools are on the same or similar arc were they are burning reserves year to year but haven't yet gotten close to the end state.

Ahh...but that's where cross-subsidization and the 1 bank account comes into play. You aren't your reserves...essentially. You eat your reserves and you just borrow from the main account. Kinda like Chaney.

One thing I want to point out on Chaney, is that people talk about them as a success and they have stabilized financially. But, West Chester helps them with Administrative tasks, and they shifted what they offered. And they borrowed money that they didn't have to pay back. Even at that, they have what? 600-some students?

As to your question on reserves...that's all out there in some of the presentations on Integration. Not easy to find. But there are a decent amount of schools that aren't financially healthy.

[complaint_hopeful]

That's just it. They can't just lower tuition. If they did that, and didn't increase amount of students right away...their reserves are gone. Some schools are operating razor thin.

As far as offering what students need - I'd venture to say they do. And then when you talk about starting new, in demand programs...it takes years and costs money. And many, many colleges do this.

Agree 100% on providing quality service. I think that's an opportunity for a quick win on some campuses. And I'll add to that to make it as easy as possible to become a student. That's what some of the mega-online U's do.

[complaint_hopeful]

The State needs to get real and not keep throwing good money after. They should get real stand up & close non-productive schools.
Sometimes you have to go thru the pain to effect the cure. I know after a 17month battle with cancer & still at least a yr to get back
to normal, if ever. Then again when you think of the alternative you say hell yes let's go for it.

First off...sending prayers your way in your battle with cancer.

I honestly think they would have closed some campuses, but the debt was too high. And someone has to pay the debt off and that would be PASSHE. Some of these schools have like 100+ million in obligations.

Merging is kind of an end-around to that. When this is all said and done, there might be 4-6 total Universities. The Triads essentially eliminate 4. And once they're operating as 1 and have all their back-end Admin stuff lined up...maybe the level the state funds them at will be sufficient? But, that might take years.

[ironmaniup]

That's just it. They can't just lower tuition. If they did that, and didn't increase amount of students right away...their reserves are gone. Some schools are operating razor thin.

As far as offering what students need - I'd venture to say they do. And then when you talk about starting new, in demand programs...it takes years and costs money. And many, many colleges do this.

Agree 100% on providing quality service. I think that's an opportunity for a quick win on some campuses. And I'll add to that to make it as easy as possible to become a student. That's what some of the mega-online U's do.

I should have said offer only what students want/ need . Degrees that limit requirements to the major and basic skills, with more electives, this focus along with streamlined services like you mentioned would be popular. Subsidies are needed to lower tuition

[Fightingscot82]

The system Board of Governors agenda for today's meeting was released. Some highlights:

1. They loosened the transfer rules. If you transfer in with an Associate's degree, you are exempt from taking General Education classes unless you haven't taken one that is required for your major.

2. They are assuming a 1.5% INCREASE in enrollment for 2022-23...

3. They're going to vote on $326M in construction spending. While there are are essential needs in the list, I think all construction should be on hold to increase funding to campuses and offset student costs.

4. The last item the board will approve is the name for the Western Integrated University. Buckle up!

[ironmaniup]

The system Board of Governors agenda for today's meeting was released. Some highlights:

1. They loosened the transfer rules. If you transfer in with an Associate's degree, you are exempt from taking General Education classes unless you haven't taken one that is required for your major.

2. They are assuming a 1.5% INCREASE in enrollment for 2022-23...

3. They're going to vote on $326M in construction spending. While there are are essential needs in the list, I think all construction should be on hold to increase funding to campuses and offset student costs.

4. The last item the board will approve is the name for the Western Integrated University. Buckle up!

[boatcapt]

The system Board of Governors agenda for today's meeting was released. Some highlights:

1. They loosened the transfer rules. If you transfer in with an Associate's degree, you are exempt from taking General Education classes unless you haven't taken one that is required for your major.

2. They are assuming a 1.5% INCREASE in enrollment for 2022-23...

3. They're going to vote on $326M in construction spending. While there are are essential needs in the list, I think all construction should be on hold to increase funding to campuses and offset student costs.

4. The last item the board will approve is the name for the Western Integrated University. Buckle up!

I thought the plan was for each campus to retain their name with the merger limited to shared services?

I think there could be a small increase in enrollment next year kind of a "COVID bounce" made up of students who were in college but stayed home for a year (or was it two?) out of fear and HE grads that had intentions to go to college but stayed home our of COVID fear. Question is will it be a dead cat bounce? The PASSHE (and alums) need to guard against seeing this bounce as proof that their plan is working. Still an enrollment increase, for what ever reason, is a positive.

[Fightingscot82]

I think essential work should be funded: routine maintenance (roofs, HVAC, etc), demolishing unused buildings, accessibility & efficiency work, etc. but with what's going on IUP doesn't need another new academic building (its function isn't even named) and Kutztown & Slippery Rock don't need $90M between the two for fieldhouse renovations.

Above all, I think its a bad look continued. Systemwide we've made significant staffing and program cuts yet we're building buildings.

[boatcapt]

And that's a great point. There was inefficiency in the hiring practices for years, but I'd argue that most of the schools that are struggling in PASSHE have cut their employees way lower than it should go. Even on the Faculty side, while they may not be cutting as many employees...they're not backfilling positions, etc. And yes, some schools do retrench.

What's unknown in this equation is what does the PASSHE consider the "right size" for each of its member schools. Big difference between the PASSHE "seeing" Clarion for example as a 2,500 student university with staff and budget accordingly OR staffed and budgeted as a 6,500 student one.

[Fightingscot82]

I thought the plan was for each campus to retain their name with the merger limited to shared services?

I think there could be a small increase in enrollment next year kind of a "COVID bounce" made up of students who were in college but stayed home for a year (or was it two?) out of fear and HE grads that had intentions to go to college but stayed home our of COVID fear. Question is will it be a dead cat bounce? The PASSHE (and alums) need to guard against seeing this bounce as proof that their plan is working. Still an enrollment increase, for what ever reason, is a positive.

The "integrated university" will have a new name and the individual campuses retain their name, mascots, etc. Think of it like Heinz merging with Kraft. Heinz Ketchup is still Heinz Ketchup but the company is now called KraftHeinz. Or in my preferred industry, Dogfish Head merging with Sam Adams.

I'm not sure what to expect with enrollment. I'm interested in how Mansfield & Cheyney saw increases - were they new students or did retention improve? Regardless, their combined gains are just 25 students. ESU's big drop is alarming - they seemed to be doing well for a while. Clarion's as well - their VP of Enrollment is in charge of enrollment strategy for the Western Integration. Its my understanding that the only schools seeming to be holding on financially are Slippery Rock, West Chester, and Millersville. Everyone else is either out of reserves or eating through them with enrollment losses outpacing the budgeted losses. The uncertainty and forthcoming unfamiliarity with the integrations won't help. Its like RMU's hockey coach trying to out-recruit the shadow of the program being cut but for an entire university. Could there be modest gains? Sure. But I'd bet right now on more losses across the board.

[ironmaniup]

I think essential work should be funded: routine maintenance (roofs, HVAC, etc), demolishing unused buildings, accessibility & efficiency work, etc. but with what's going on IUP doesn't need another new academic building (its function isn't even named) and Kutztown & Slippery Rock don't need $90M between the two for fieldhouse renovations.

Above all, I think its a bad look continued. Systemwide we've made significant staffing and program cuts yet we're building buildings.

Believe it or not , new construction becomes cheaper than maintenance once buildings become too old - simply acheiving modern OSHA and ACA requirements can be cost prohibitive. Old buildings were not made to be flexible, for instance cinderblock walls were popular in the 70s. Its expensive to rewire, add vents, or merge rooms. Sure it looks bad to spend on buildings, but in the end its usually better for the students, and the school. Also, money allocated now for buildings won't be spent for like 10 years, so it sits in the bank earning money for the state. Hopefully they'll beat inflation, but state financial people are on a par with state system attorneys, neither are very good so I wouldn't count on it - but they fill up the state slush fund, and then provide a lower quality building than has been planned for. Its quite the scam. .

[boatcapt]

The "integrated university" will have a new name and the individual campuses retain their name, mascots, etc. Think of it like Heinz merging with Kraft. Heinz Ketchup is still Heinz Ketchup but the company is now called KraftHeinz. Or in my preferred industry, Dogfish Head merging with Sam Adams.

I'm not sure what to expect with enrollment. I'm interested in how Mansfield & Cheyney saw increases - were they new students or did retention improve? Regardless, their combined gains are just 25 students. ESU's big drop is alarming - they seemed to be doing well for a while. Clarion's as well - their VP of Enrollment is in charge of enrollment strategy for the Western Integration. Its my understanding that the only schools seeming to be holding on financially are Slippery Rock, West Chester, and Millersville. Everyone else is either out of reserves or eating through them with enrollment losses outpacing the budgeted losses. The uncertainty and forthcoming unfamiliarity with the integrations won't help. Its like RMU's hockey coach trying to out-recruit the shadow of the program being cut but for an entire university. Could there be modest gains? Sure. But I'd bet right now on more losses across the board.

Good observation. And Dogfish hasn't been the same since. They basically have become a clone of Sam Adams (who's beer I've never really cared for) with different packaging. I used to love Dogfish but even before I heard about the buyout (mid 2020) I could taste a "differance" in their individual brews and in their range of beers...went from basically a 60 and 120 Min IPA with seasonal/occasional brews to many offerings similar to the "throw jello at the wall" brewing plan that Sam Adams utalizes. Dogfish has gone from off-centered to corporate-centered.