Originally posted by boatcapt
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PASSHE Institutions Merging
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Originally posted by Fightingscot82 View Post
I don't see any gain for Temple in that scenario. They're nowhere near the levels of Pitt and Penn State in terms of financial strength nor are they into the whole branch campus thing. I also don't see a gain for Penn State. Edinboro is 30 miles from one of the only two Penn State outlet stores that are doing well and in the same county. Cal is very close to Penn State Fayette. But Clarion is fairly isolated from other schools. They're about 30 minutes from Penn State DuBois but there's no real benefit there.Last edited by IUPNation; 04-20-2021, 06:25 PM.
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Originally posted by Bart View PostFormer LHU president in the running for a new gig.
https://www.lockhaven.com/news/local...ss-university/
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Former LHU president in the running for a new gig.
https://www.lockhaven.com/news/local...ss-university/
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Originally posted by Fightingscot82 View Post
That's a shocking number if true but you also have to think about sample. Possibly for the wealthiest schools out there but for former state teachers colleges (about 1/3 of all publics) the endowments tend to be MUCH smaller and more restricted. Old Man Smith and his wife pinched pennies and donated $50k to Northwest McState for the Old Man Smith Family Scholarship.
I'm not saying the PASSHE schools in question should use their endowments to pay for general operations, im saying that a school like Temple or PS could use a portion of their unrestricted endowment, AND the millions of $'s PA gives them every year to purchase these schools.
Do I think it will happen? No. Would the 6 PASSHE schools be in a better position to survive in some form if it did? Yes.
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Originally posted by boatcapt View Post
Difference between can't and don't. A school such as Temple in this discussion can use unrestricted endowments for whatever they want, be it general operation or to fund the losses of an asset the obtain (like, say 3 former PASSHE schools). They may chose not to do any of that and just reinvest the $.
I read on line that it is estimated that 55% of college endowments are unrestricted.
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Originally posted by Fightingscot82 View Post
Its very rare that schools use unrestricted endowment to pay for general operating needs. Most unrestricted endowments unless part of the gift agreement are still used as scholarship dollars just at the school's discretion. In fact, the only examples of using unrestricted endowment to stave off budget deficits have been the small privates trying to avoid closure. Nobody in PASSHE is there. Plus PASSHE school endowments are "owned" and operated by legally separate 501c3 non-profits with their own boards and staffs. The state can't confiscate those funds. Its actually a big sticking point of the integrations, particularly because some schools' foundations have employees doing work on behalf of the university. I imagine those employees will be converted to "new university" employees.
I read on line that it is estimated that 55% of college endowments are unrestricted.
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Originally posted by boatcapt View Post
A schools endowment is made up of a number of parts...some restricted (for a specific purpose) and some unrestricted (general operation of the college). Restricted endowments are for a specific purpose, such as a particular scholarship or the funding an academic chair. Schools use these restricted endowments to relieve them of the need to pay for that particular thing. School then turns around and uses the money that it would have used to fund that thing and uses it elsewhere in the college. Using Temple as an example, here is how it works (from Temple policies on endowment and giving):
If an operating budget fund has the same purpose as an available endowment and/or gift fund, expenditures should first be made from the endowment and/or gift fund, or any available unrestricted endowment/gift funds with balances, until the endowment/gift revenue is exhausted.
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Originally posted by Fightingscot82 View Post
Then why would you suggest that Temple or Penn State use their endowments to plug the budget deficits at PASSHE schools?
If an operating budget fund has the same purpose as an available endowment and/or gift fund, expenditures should first be made from the endowment and/or gift fund, or any available unrestricted endowment/gift funds with balances, until the endowment/gift revenue is exhausted.
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Originally posted by boatcapt View Post
Yes, I do know what an endowment is. I endowed a scholarship (restricted) and made an unrestricted endowment to the colleges general fund in my father and my brothers names a couple of years ago.
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Originally posted by Fightingscot82 View Post
You still don't know what an endowment is.
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Originally posted by boatcapt View Post
Question wasn't who would willingly take a PASSHE school, question was if you could merge a PASSHE with any school in the state, who would it be and why.
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Originally posted by Fightingscot82 View Post
But that's not what endowments are. An endowment isn't reserves.
I also think you underestimate the political power of Penn State with the legislature. 23 physical campuses plus "cooperative extension" presences in every one of PA's counties to do agricultural support. Plus additional outreach centers. Penn State operates a lobbying office in Pittsburgh - I imagine they have others in other cities. All that before legislators get their hands on football tickets.
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Originally posted by boatcapt View Post
I note there is not much "gain" for any school merged with the PASSHE schools. I was answering a hypothetical question.
Didn't say the gain was for PS or Temple. Both schools endowments FAR exceed any of the remaining endowments for any PASSHE school so they would be better able to absorb the losses being incurred by the PASSHE schools they inherit. Once the schools were absorbed by PS and Temple, the two universities would determine the best course of action to either stabalize/grow them as quasi independent colleges or merge them within their current branch campus system.
The state has a hook into PS and Temple, that hook is state funding. Tell both that they either take the six schools, or they lose their state funding.
I also think you underestimate the political power of Penn State with the legislature. 23 physical campuses plus "cooperative extension" presences in every one of PA's counties to do agricultural support. Plus additional outreach centers. Penn State operates a lobbying office in Pittsburgh - I imagine they have others in other cities. All that before legislators get their hands on football tickets.
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