PASSHE Institutions Merging

[Bart]

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.

Thanks for the information. It may be a good idea to look at a possible closing somewhere because the merger isn't working. Bloom had a net asset of 49 million before the merger, but now their in a marriage with negative net assets. The loans from Mansfield didn't help and now two of Mansfield's new dorms are in mothballs. The schools have cut 450 jobs since the merger, but continue to offer classes at each campus which means commuting staff, fewer classes and virtual learning. Not ideal for anyone.

It's not going to get better with declining enrollments and increasing costs. I read a recent editorial suggesting the state should discuss closing one of the three schools because "It looks like all are now taking on the traits of the worst-off school." No good answer.

[Fightingscot82]

Thanks for the information. It may be a good idea to look at a possible closing somewhere because the merger isn't working. Bloom had a net asset of 49 million before the merger, but now their in a marriage with negative net assets. The loans from Mansfield didn't help and now two of Mansfield's new dorms are in mothballs. The schools have cut 450 jobs since the merger, but continue to offer classes at each campus which means commuting staff, fewer classes and virtual learning. Not ideal for anyone.

It's not going to get better with declining enrollments and increasing costs. I read a recent editorial suggesting the state should discuss closing one of the three schools because "It looks like all are now taking on the traits of the worst-off school." No good answer.

I think the challenge is that the rank and file admissions and marketing folks don't really know how to sell the merger nor the new names. Like when Kmart and Sears merged - that didn't do anything to motivate me to go to either place nor did they convince me.

Regardless of what was said in the beginning, both mergers are starting to resemble each other. They found a way to combine the org charts and some hierarchy among those doing the functions that have to be replicated at each campus like housekeeping, athletics, etc. Everything else is shared and online like accounting, human resources, etc. Academic departments had the same thing - they combined departments and assigned them to a home campus. So if Music is headquartered at Mansfield, anyone looking for a music class at Lock Haven or Bloomsburg has to take it online with a few exceptions.

A similar draw down of reserve assets happened with Penn West. Clarion blew through their reserves then the bottom fell out at Edinboro. Cal had some left but the merger ate those.

The debt relief will help quite a bit. They've done it before for Penn West and IUP.

[Fightingscot82]

They aren't at the top of my list of those WPA schools most likely to fail, but they're top 5.

https://triblive.com/news/education-...ditation-body/

[TheBigCat2192]

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.

Bloomsburg building a new, suite-style residence hall (Soltz Hall) even while attendance was declining was always a baffling decision to me. They probably should have put a halt on major construction after the upgrades to Elwell, but I guess that Soltz wanted something with his name on it on campus.

[Fightingscot82]

Bloomsburg building a new, suite-style residence hall (Soltz Hall) even while attendance was declining was always a baffling decision to me. They probably should have put a halt on major construction after the upgrades to Elwell, but I guess that Soltz wanted something with his name on it on campus.

Bloom was on the front end of the alternative housing construction. They built several small apartment complexes in response to the lack of off campus options that weren't slummy Victorian houses chopped into apartments. Some of these projects take years from approval to shovels in dirt so its possible the wheels were in motion before the decline began. Soltz is suite style, which closed the gap on housing types. Its a beautiful building. Maybe the most architecturally striking of any dorm in the system. Very few campuses deliberately had all three types of student housing: cellblock dorm style, suites, and apartments, so I commend Bloom, even if enrollment declined after doing so.

[Bart]

Bloomsburg building a new, suite-style residence hall (Soltz Hall) even while attendance was declining was always a baffling decision to me. They probably should have put a halt on major construction after the upgrades to Elwell, but I guess that Soltz wanted something with his name on it on campus.

Soltz Hall is also multi-purpose, replacing the bookstore and dining option in one building. Do they still have a food option in Kehr Union? There were plans to build a new student union where the former Andruss Library site. Those were the days of 12000 students on campus.

The other part of housing on campus was the result of multiple deadly fires off campus.

[TheBigCat2192]

Soltz Hall is also multi-purpose, replacing the bookstore and dining option in one building. Do they still have a food option in Kehr Union? There were plans to build a new student union where the former Andruss Library site. Those were the days of 12000 students on campus.

The other part of housing on campus was the result of multiple deadly fires off campus.

Based on the Bloom U portion of the Commonwealth website, KUB still:

Offers selections from the Burgers + Fries, The Italian Kitchen, The BU Bagel Deli, Sandwich Shack, Greens to Go, and express grab-and-go options.

Soltz has a Chik-Fil-A and a Qdoba.

[TheBigCat2192]

Bloom was on the front end of the alternative housing construction. They built several small apartment complexes in response to the lack of off campus options that weren't slummy Victorian houses chopped into apartments. Some of these projects take years from approval to shovels in dirt so it’s possible the wheels were in motion before the decline began. Soltz is suite style, which closed the gap on housing types. It’s a beautiful building. Maybe the most architecturally striking of any dorm in the system. Very few campuses deliberately had all three types of student housing: cellblock dorm style, suites, and apartments, so I commend Bloom, even if enrollment declined after doing so.

They didn’t complete Soltz until after I graduated, so I’ll admit that I haven’t seen the inside of it. Maybe my opinion would be different if I ever had. As far as the apartments go, I lived in two of the on-campus complexes. Montgomery Place are basically 2bed/1bath apartments with the bedrooms done dorm-style (the bedrooms are two person and you get fairly limited closet space) Mount Olympus (townhouse style) are much nicer for privacy. I never lived or had any friends who lived in the Kozloff apartments so I can’t speak to them. I suppose the variety is nice, but the timing for Soltz ended up poor in my eyes.

[IUPNation]

They aren't at the top of my list of those WPA schools most likely to fail, but they're top 5.

https://triblive.com/news/education-...ditation-body/

Start selling off acres of the campus…

[Fightingscot82]

Start selling off acres of the campus…

They're a pretty small, enclosed campus made up of several large victorian homes. There is a newer campus 10-15 miles north in Pine Richland that focuses on environmental sustainability. That would be a pretty strong about-face for what they've put into it.

But the reality is that these smaller privates with no fundraising power or tradition live and die by enrollment and tuition discounting games. Some unanticipated expenses or dip in enrollment is felt for years. To their advantage, as an independent they can make some internal changes to save coin. I spent 10 years working at one and some strategies they took to mitigate unanticipated revenue (enrollment) challenges: across the board no raises or small one-time payments in place of raises, executive pay cuts or deferred pay, downgrade the health insurance plan, eliminate other benefits like tuition waivers, across the board cuts to operating funds/mid-year give backs, cancelling or pausing hiring of vacant positions, and of-course retirement incentives and/or open buyouts. In personnel-driven businesses like colleges, all of those cuts are tough because when a human is missing, things don't get done, and some cuts that look good on paper drive others to leave causing more turnover, and in some cases students leave, too when they aren't supported.

[IUPNation]

They're a pretty small, enclosed campus made up of several large victorian homes. There is a newer campus 10-15 miles north in Pine Richland that focuses on environmental sustainability. That would be a pretty strong about-face for what they've put into it.

But the reality is that these smaller privates with no fundraising power or tradition live and die by enrollment and tuition discounting games. Some unanticipated expenses or dip in enrollment is felt for years. To their advantage, as an independent they can make some internal changes to save coin. I spent 10 years working at one and some strategies they took to mitigate unanticipated revenue (enrollment) challenges: across the board no raises or small one-time payments in place of raises, executive pay cuts or deferred pay, downgrade the health insurance plan, eliminate other benefits like tuition waivers, across the board cuts to operating funds/mid-year give backs, cancelling or pausing hiring of vacant positions, and of-course retirement incentives and/or open buyouts. In personnel-driven businesses like colleges, all of those cuts are tough because when a human is missing, things don't get done, and some cuts that look good on paper drive others to leave causing more turnover, and in some cases students leave, too when they aren't supported.

It’s on the wealthiest part of the city..I’m sure some of the land could fetch a price….

[Fightingscot82]

The Penn West president has been named president at Utah Valley University, the campus where Charlie Kirk was killed. The revolving door continues.

[Fightingscot82]

More good news, our tax dollars are sending $300k to help private college Thiel build a new athletic arena. Some other great uses of our tax dollars to support private colleges more than PASSHE:

$2 million to Point Park for a new dorm

$1.5 million to Carnegie Mellon to start an AI center at their robotics research institute

$1 million to Duquesne for a new health sciences building

$1.5 million to Geneva College to renovate their Old Main building

$750k to Alvernia to construct a community health clinic in downtown Reading

$1 million to Allegheny for a new technology classroom building

$500k to Eastern University for elevator repair

$500k to Neumann University for an ice hockey facility

$1.5 million to Widener to renovate their event center

$2 million to Mercyhurst to replace the roof on their fieldhouse

$500k to Marywood to renovate their science building

$1 million to Franklin & Marshall to build an athletic training facility

$1 million to Kings College to replace their track

$500k to Misercordia to renovate their health & fitness center

$1.5 million to Penn College for an earth science center

$250k to Gwynned Mercy to renovate their auditorium

$1 million to Lafayette to renovate their baseball field

$1.05 million to Community College of Philadelphia to renovate two facilities

$1.25 million to Washington & Jefferson to convert a building into a school of nursing

$500k to St Vincent to build a terrace outside their athletic facility

$1.75 million to Seton Hill for various renovations

[Ship69]

More good news, our tax dollars are sending $300k to help private college Thiel build a new athletic arena. Some other great uses of our tax dollars to support private colleges more than PASSHE:

$2 million to Point Park for a new dorm

$1.5 million to Carnegie Mellon to start an AI center at their robotics research institute

$1 million to Duquesne for a new health sciences building

$1.5 million to Geneva College to renovate their Old Main building

$750k to Alvernia to construct a community health clinic in downtown Reading

$1 million to Allegheny for a new technology classroom building

$500k to Eastern University for elevator repair

$500k to Neumann University for an ice hockey facility

$1.5 million to Widener to renovate their event center

$2 million to Mercyhurst to replace the roof on their fieldhouse

$500k to Marywood to renovate their science building

$1 million to Franklin & Marshall to build an athletic training facility

$1 million to Kings College to replace their track

$500k to Misercordia to renovate their health & fitness center

$1.5 million to Penn College for an earth science center

$250k to Gwynned Mercy to renovate their auditorium

$1 million to Lafayette to renovate their baseball field

$1.05 million to Community College of Philadelphia to renovate two facilities

$1.25 million to Washington & Jefferson to convert a building into a school of nursing

$500k to St Vincent to build a terrace outside their athletic facility

$1.75 million to Seton Hill for various renovations

What is their rationale for this? Is it supposed to be some kind of constituent service or something? The legislature's schtick of complaining about PASSHE tuitions while doing their level best to divert money to the "state-related" and private crowd grows very tiresome.

[boatcapt]

Maybe they could sell Mansfield to New York.

Sell?? What, so the greedy land owning education oligarchs can make more billions on the backs of the peasant professors??!! NY needs to confiscate it and turn it into free housing for the temporarily otherwise housed. The cafeteria would make a great soup kitchen and you can turn the student union into a state run grocery store. You can probably fit at least 8 to a room!