PASSHE Institutions Merging

[Fightingscot82]

I think Ship's acceptance rate is in the 80-some percent rate these days, and I'm sure most other PASSHE schools are probably about the same. They were even higher a few years back, but the current administration dialed it back some as they were seeing students who were in no way ready to do college work. Even with light admission requirements, most of the students admitted probably had better than a "B" overall average in high school. If you're on a scholarships awards committee these days (I am on a couple), you know that grade inflation is a real thing. Admissions officials at selective colleges must have some powerful algorithms to help them sort out things. My grad school, Northwestern, takes in about 2200 new undergrads a year and had more than 50,000 applications for their last class. Most of those applicants will be in the top 10 percent of their high school class. Is student number 2,200 really much better than student 3,500? Who knows? Arguing that college admissions is a pure meritocracy is ridiculous.

The average is hovering around 90% right now, so if Ship can stay financially solvent in the 80s, that's a good thing. I believe SRU is the lowest in the low 70s. Its a challenge now because a) our schools don't have a limited number of spots available like some private schools do, and b) sooooo many high school applicants have a 3.5 GPA.

[Ship69]

The average is hovering around 90% right now, so if Ship can stay financially solvent in the 80s, that's a good thing. I believe SRU is the lowest in the low 70s. Its a challenge now because a) our schools don't have a limited number of spots available like some private schools do, and b) sooooo many high school applicants have a 3.5 GPA.

They seem to be holding their own at Ship right now, which actually is a plus these days. You're right about the GPA. I was reviewing about 25 applicants for one of our Rotary scholarships, and more than half of them had a 3.85 or better GPA. GPA still offers some guidance toward what a student might do post-high school, but it's not nearly as reliable as it used to be. You also have a school factor in that some high schools are just better than others. Personally, I moved after my sophomore year from a highly regarded suburban Chicago district to central Pa. and watched my GPA go from about a 2.5 to 3.5. I believe that's why you see more colleges going back to the SAT and ACT. They are not a perfect measure of ability, but there aren't as many variables as GPA. As I remarked, how do you sort out 30,000 kids, each with 3.5 or higher GPAs, sterling letters of recommendation, and a ton of extracurricular activities? It can't be easy.

[IUPNation]

Derp Derp Derp

West Virginia University spent $3 million standing up a brand-new "anti-woke" academic center — the Washington Center for Civics, Culture and Statesmanship. This fall, when the doors opened for its first semester, exactly one student was enrolled.

The same university spent that $3 million right after cutting 28 academic majors and laying off hundreds of people over a $45 million budget shortfall. So it didn't have the money — it killed real degrees and real jobs, and then funded a center for a single student...

Watch: https://youtu.be/YcLxYhXAIsg

[boatcapt]

Derp Derp Derp

West Virginia University spent $3 million standing up a brand-new "anti-woke" academic center — the Washington Center for Civics, Culture and Statesmanship. This fall, when the doors opened for its first semester, exactly one student was enrolled.

The same university spent that $3 million right after cutting 28 academic majors and laying off hundreds of people over a $45 million budget shortfall. So it didn't have the money — it killed real degrees and real jobs, and then funded a center for a single student...

Watch: https://youtu.be/YcLxYhXAIsg

JEEZ. .That rivals the 5 students that graduated from the Women and Gender Studies program this last year and the one who graduated with a ***** Studies minor!!

[IUPNation]

JEEZ. .That rivals the 5 students that graduated from the Women and Gender Studies program this last year and the one who graduated with a ***** Studies minor!!

Did they spend 3 million on it?

Then the hillbillies can’t understand why their broke ass state ranks in the bottom 5 of everything and we have to hear them sneer about “bring left behind”.

[Fightingscot82]

PA budget signed "only" two weeks late. Much better than last year. But unfortunately did not include an increase sufficient to prevent a tuition increase, which was approved the week before. Tuition will rise $172/semester which is tolerable. Full in-state base tuition at all 10 schools is roughly $8,300/year plus mandatory and optional fees. PASSHE's challenge is that 80-85% of employees have union contracts that guarantee semi-annual raises (usually around 1.5% each) with fixed healthcare premiums. That makes things easy to plan for but you know those cost increases are looming regardless of enrollment. PASSHE was very good at selling Tom Wolf on covering their fixed cost increases so they wouldn't have to raise tuition. Josh Shapiro isn't on board.

However, he did include $78.1 million to pay down debt at Commonwealth. Probably dorm debt. But that allows Commonwealth to adequately staff the campus for the best student experience instead of dedicating so much to debt service. The state should never allowed the schools to each borrow $100M to build as many dorms as they did.

The budget does include a 25% increase to the Student Teacher Stipend program that gives $10,000 stipends to student teachers who agree to stay in PA after graduation. All of my undergraduate loan debt was from not being allowed to work even part time while I was student teaching, which cost me a couple hundred bucks a month in gas. They also increased the PA Grow scholarship, which rewards PA residents for choosing in demand programs and a promise to stay in PA after graduation. I believe that's $5,000/year for those who qualify.

[IUPNation]

PA budget signed "only" two weeks late. Much better than last year. But unfortunately did not include an increase sufficient to prevent a tuition increase, which was approved the week before. Tuition will rise $172/semester which is tolerable. Full in-state base tuition at all 10 schools is roughly $8,300/year plus mandatory and optional fees. PASSHE's challenge is that 80-85% of employees have union contracts that guarantee semi-annual raises (usually around 1.5% each) with fixed healthcare premiums. That makes things easy to plan for but you know those cost increases are looming regardless of enrollment. PASSHE was very good at selling Tom Wolf on covering their fixed cost increases so they wouldn't have to raise tuition. Josh Shapiro isn't on board.

However, he did include $78.1 million to pay down debt at Commonwealth. Probably dorm debt. But that allows Commonwealth to adequately staff the campus for the best student experience instead of dedicating so much to debt service. The state should never allowed the schools to each borrow $100M to build as many dorms as they did.

The budget does include a 25% increase to the Student Teacher Stipend program that gives $10,000 stipends to student teachers who agree to stay in PA after graduation. All of my undergraduate loan debt was from not being allowed to work even part time while I was student teaching, which cost me a couple hundred bucks a month in gas. They also increased the PA Grow scholarship, which rewards PA residents for choosing in demand programs and a promise to stay in PA after graduation. I believe that's $5,000/year for those who qualify.

The Cult in the Senate wasn’t going to hold the budget hostage in an election year.

Hopefully that will flip that blue too and put an end to the nonsense in Harrisburg. The State Senator from Indiana is a meathead.

[IUPbigINDIANS]

PA budget signed "only" two weeks late. Much better than last year. But unfortunately did not include an increase sufficient to prevent a tuition increase, which was approved the week before. Tuition will rise $172/semester which is tolerable. Full in-state base tuition at all 10 schools is roughly $8,300/year plus mandatory and optional fees. PASSHE's challenge is that 80-85% of employees have union contracts that guarantee semi-annual raises (usually around 1.5% each) with fixed healthcare premiums. That makes things easy to plan for but you know those cost increases are looming regardless of enrollment. PASSHE was very good at selling Tom Wolf on covering their fixed cost increases so they wouldn't have to raise tuition. Josh Shapiro isn't on board.

However, he did include $78.1 million to pay down debt at Commonwealth. Probably dorm debt. But that allows Commonwealth to adequately staff the campus for the best student experience instead of dedicating so much to debt service. The state should never allowed the schools to each borrow $100M to build as many dorms as they did.

The budget does include a 25% increase to the Student Teacher Stipend program that gives $10,000 stipends to student teachers who agree to stay in PA after graduation. All of my undergraduate loan debt was from not being allowed to work even part time while I was student teaching, which cost me a couple hundred bucks a month in gas. They also increased the PA Grow scholarship, which rewards PA residents for choosing in demand programs and a promise to stay in PA after graduation. I believe that's $5,000/year for those who qualify.

My weekly grocery bill has gone up that much in the past year. Have you bought steaks lately? Good Lord.

[Fightingscot82]

My weekly grocery bill has gone up that much in the past year. Have you bought steaks lately? Good Lord.

Went to a wedding at Apple Cross in Downingtown this past weekend and had the filet grilled to perfection! Hit my budget just right lol. But FFS the tolls and road quality on the PA Turnpike!

[IUPNation]

My weekly grocery bill has gone up that much in the past year. Have you bought steaks lately? Good Lord.

Elections have consequences.

Gas is going to go back up too…

[Bart]

PA budget signed "only" two weeks late. Much better than last year. But unfortunately did not include an increase sufficient to prevent a tuition increase, which was approved the week before. Tuition will rise $172/semester which is tolerable. Full in-state base tuition at all 10 schools is roughly $8,300/year plus mandatory and optional fees. PASSHE's challenge is that 80-85% of employees have union contracts that guarantee semi-annual raises (usually around 1.5% each) with fixed healthcare premiums. That makes things easy to plan for but you know those cost increases are looming regardless of enrollment. PASSHE was very good at selling Tom Wolf on covering their fixed cost increases so they wouldn't have to raise tuition. Josh Shapiro isn't on board.

However, he did include $78.1 million to pay down debt at Commonwealth. Probably dorm debt. But that allows Commonwealth to adequately staff the campus for the best student experience instead of dedicating so much to debt service. The state should never allowed the schools to each borrow $100M to build as many dorms as they did.

The budget does include a 25% increase to the Student Teacher Stipend program that gives $10,000 stipends to student teachers who agree to stay in PA after graduation. All of my undergraduate loan debt was from not being allowed to work even part time while I was student teaching, which cost me a couple hundred bucks a month in gas. They also increased the PA Grow scholarship, which rewards PA residents for choosing in demand programs and a promise to stay in PA after graduation. I believe that's $5,000/year for those who qualify.

Commonwealth predicted budget deficit was 20 million for next school year. They cut staff by 23%, but payroll and benefits still count for 75% of their budget. They expected to be 29.4 million in the hole next year and projections were for 93 million from the state which is 33% less than when the schools were merged. Unsustainable.

Mansfield is costing CU 9 million a year in dorm debt payments, despite the state giving 37 million in the past to pay of Mansfield's debts mostly due to dorms. CU asked for debt reduction and repayment of loans and other obligations. That 78.1 million will help, but they still won't be able to balance their budget

[Fightingscot82]

Commonwealth predicted budget deficit was 20 million for next school year. They cut staff by 23%, but payroll and benefits still count for 75% of their budget. They expected to be 29.4 million in the hole next year and projections were for 93 million from the state which is 33% less than when the schools were merged. Unsustainable.

Mansfield is costing CU 9 million a year in dorm debt payments, despite the state giving 37 million in the past to pay of Mansfield's debts mostly due to dorms. CU asked for debt reduction and repayment of loans and other obligations. That 78.1 million will help, but they still won't be able to balance their budget

Correct. Personnel will always be 70-80% of a college/university's budget. Much like a hospital, its a human capital enterprise. Throw in physical plant associated costs and you're at 90% of the expenses. The benefit of so many employees being on union contracts is the ability to plan for salary increases.

It doesn't matter if Mansfield is costing CU anything because athletics, physical plant and "home" location of functions are the only differentiations for campuses in the mergers. Neither merger has figured out how to sell a multicampus shared-heritage conglomerate. If they continue to sell vague platitudes like every other college and no true differentiation from top to bottom, they'll continue to drop enrollment.

The state should never have allowed 12 of the 14 schools to overborrow and overbuild. They each borrowed roughly $100M to build all suite-style dorms instead of building a few buildings with that style. It was a good look at the time but nobody except for SRU and WCU were able to sustain their 2010 peak enrollment. Research has always shown that the old school traditional dorms are not fun but best for student development because it forces community and exploration when kids are desperate to get out of their block wall room. So I guess this is what the state deserves for a lack of oversight.

[iupgroundhog]

Commonwealth predicted budget deficit was 20 million for next school year. They cut staff by 23%, but payroll and benefits still count for 75% of their budget. They expected to be 29.4 million in the hole next year and projections were for 93 million from the state which is 33% less than when the schools were merged. Unsustainable.

Mansfield is costing CU 9 million a year in dorm debt payments, despite the state giving 37 million in the past to pay of Mansfield's debts mostly due to dorms. CU asked for debt reduction and repayment of loans and other obligations. That 78.1 million will help, but they still won't be able to balance their budget

Maybe they could sell Mansfield to New York.

[Bart]

Correct. Personnel will always be 70-80% of a college/university's budget. Much like a hospital, its a human capital enterprise. Throw in physical plant associated costs and you're at 90% of the expenses. The benefit of so many employees being on union contracts is the ability to plan for salary increases.

It doesn't matter if Mansfield is costing CU anything because athletics, physical plant and "home" location of functions are the only differentiations for campuses in the mergers. Neither merger has figured out how to sell a multicampus shared-heritage conglomerate. If they continue to sell vague platitudes like every other college and no true differentiation from top to bottom, they'll continue to drop enrollment.

The state should never have allowed 12 of the 14 schools to overborrow and overbuild. They each borrowed roughly $100M to build all suite-style dorms instead of building a few buildings with that style. It was a good look at the time but nobody except for SRU and WCU were able to sustain their 2010 peak enrollment. Research has always shown that the old school traditional dorms are not fun but best for student development because it forces community and exploration when kids are desperate to get out of their block wall room. So I guess this is what the state deserves for a lack of oversight.

Each campus has it's own costs according to the Chief Financial Officer. Mansfield came into the merger with debt and the merger used up 68.1 million in surplus from the other two schools.

Cutting payroll and shutting down buildings will not balance the budget per CFO. There are difficult decisions ahead. Bloom raised over 100 million recently but that all stays at Bloom per press release.

Penn Western predicted 8 million deficit next year, ESU 4 million, and Kutztown, Millersille and West Chester should have surplus. Should the system share across all schools or only the merged?

[Fightingscot82]

Each campus has it's own costs according to the Chief Financial Officer. Mansfield came into the merger with debt and the merger used up 68.1 million in surplus from the other two schools.

Cutting payroll and shutting down buildings will not balance the budget per CFO. There are difficult decisions ahead. Bloom raised over 100 million recently but that all stays at Bloom per press release.

Penn Western predicted 8 million deficit next year, ESU 4 million, and Kutztown, Millersille and West Chester should have surplus. Should the system share across all schools or only the merged?

Where money resides and comes form is clear as mud within PASSHE. Fundraised dollars are typically housed or at the very least passed through their foundations. As of today no foundations have been merged as they're all legally separate. Historically the state does not pay for residence halls so the schools had to borrow through the foundations against the scholarship endowments to borrow $100-125M each. The timing was terrible and most schools had 1980s level interest rates and very high occupancy requirements. Some have been able to refinance or renegotiate terms. That's nearly all of the debt at PASSHE schools - still paying down the suite-style dorms everyone built in the 2010s with some exceptions like the parking garage at Cal.

From PASSHE's perspective, when looking at finances the individual campuses of the mergers no longer exist. When Commonwealth requests construction funds, they don't request for Mansfield or Bloomsburg, they request for Commonwealth, so you'd have to Google the building name to see which campus it benefits. There is no reporting or tracking in Harrisburg for any of the merged campuses. There is no real way to measure how many students are at the campuses no longer independent. Any number you see is a Frankenstein approach using campus housing numbers, those enrolled in campus-specific in-person programs (like PA at Lock Haven), and additional inexact totals like athletes not covered in those previous two numbers. Unfortunately, PASSHE no longer cares how many students attend "Edinboro" or "Lock Haven" they way they do at Millersville or IUP.

Specific to what the Commonwealth CFO says, sure, that's accurate because Commonwealth has to track expenses specific to each campus it operates just like years ago when most PASSHE schools had satellite centers. Its very difficult to quickly slash payroll because there are contractual processes for doing so and in some cases could do more harm than good. Most of our schools are located in areas with very, very few qualified to teach one specific class that would have been covered by a full time professor.

PASSHE school finances also live within one account, so West Chester's reserves are being eaten away to cover operating deficits at the other schools. This wasn't necessary (or imaginable) for decades until most schools began to recede. There is not a provision that the schools must pass a balanced budget - mostly because there are so many unknowns before the FY begins. Enrollment isn't final, the state budget is never passed, and hiring hasn't concluded.