PASSHE Institutions Merging

[Fightingscot82]

It was written by Tim Shuey, a CU chief financial officer who resigned earlier this year. It is hard to misinterpret when buildings on all campuses are being torn down to help balance the budget, while Mansfied's new dorms remain empty with $110 million dollar bill.

I'm curious how much is still owed on the residence halls at the consolidated campuses. We're a little over 10 years in on what were likely 30 year bonds on most of these projects.

[Bart]

No, I get that but there are different ways to write the report, depending on one's perspective. Why did Tim Shuey resign?

Seventeen days after the annual high-risk report, President Bashar Hanna sent on Jan. 4, 2024, via email to the faculty and staff that Tim Shuey, the previous holder of this position, has resigned.
The email states, “He has relinquished all duties associated with the role of the position, effective immediately.”
https://buvoice.com/6416/news/cu-def...er-in-the-red/

What is your concern? CU is taking on water because SSHE tried to bail out Mansfield.

[iupgroundhog]

It was written by Tim Shuey, a CU chief financial officer who resigned earlier this year. It is hard to misinterpret when buildings on all campuses are being torn down to help balance the budget, while Mansfied's new dorms remain empty with $110 million dollar bill.

No, I get that but there are different ways to write the report, depending on one's perspective. Why did Tim Shuey resign?

[IUPNation]

No, it's not. In terms of geography, it covers an entire quadrant of the state. In terms of accessibility, it's not overkill. Also, that entire quadrant of the state has only 1 community college, Luzerne County CC, outside of Wilkes-Barre, so that is not accessible for people living outside of a small radius around Wilkes-Barre.

Then turn Mansfield into a community college. The fact there is really only one state system school located in the 5 county Philadelphia region is crazy. I mean yes there are 2 but Cheyney isn’t geared to serve a whole region. Yet there are three in a sparsely populated section and we wonder why so many of them are struggling.

[Bart]

Who wrote the report? Regardless, it seems like it is open to misinterpretation. Thanks for making me aware of the situation.

It was written by Tim Shuey, a CU chief financial officer who resigned earlier this year. It is hard to misinterpret when buildings on all campuses are being torn down to help balance the budget, while Mansfied's new dorms remain empty with $110 million dollar bill.

[iupgroundhog]

Problems loom without "system or legislative intervention" according to the report. Already, need base scholarships will be reduced by 1.5 million this fall, athletic and other waivers by $76,000, and also reduce out of state scholarships. They also lost $300,000 in Board of Governor scholarships because of the court decision on affirmative action. There are other cuts I could list, such as cutting programs, classes, and jobs to save $2 million, and and another $3 million with retirements.

Who wrote the report? Regardless, it seems like it is open to misinterpretation. Thanks for making me aware of the situation.

[Bart]

That may be true but what are you going to do about it. As you say, it was 2016, before CU came to be. Everybody knew this.

There are a lot of things that I don't know. How that capital debt is dealt with is one of them. Is the debt held by Commonwealth University of Pennsylvania, PASSHE, or the state of Pennsylvania? Will students at CU be hurt financially by the debt in the form of higher tuition? I really don't know how servicing that debt works.

Problems loom without "system or legislative intervention" according to the report. Already, need base scholarships will be reduced by 1.5 million this fall, athletic and other waivers by $76,000, and also reduce out of state scholarships. They also lost $300,000 in Board of Governor scholarships because of the court decision on affirmative action. There are other cuts I could list, such as cutting programs, classes, and jobs to save $2 million, and and another $3 million with retirements.

[iupgroundhog]

Believe me, the Press-Enterprise is no friend of Bloomsburg University and are biased against the Bloom U. The amount of debt for each school was per student $1,527 at Bloom, $1,806 at Lock Haven, and $5,307 at Mansfield tells the tale. Mansfield has $110 million dollar debt due to 5 dormitories built in 2016; they were at 2,000 students, now at 1,300. Bloom and LHU share that debt now...it's on the books.

That may be true but what are you going to do about it. As you say, it was 2016, before CU came to be. Everybody knew this.

There are a lot of things that I don't know. How that capital debt is dealt with is one of them. Is the debt held by Commonwealth University of Pennsylvania, PASSHE, or the state of Pennsylvania? Will students at CU be hurt financially by the debt in the form of higher tuition? I really don't know how servicing that debt works.

[iupgroundhog]

LCCC has several branch campuses, including 2 in Northumberland County: Shamokin and Watsontown. They have campuses in Lackawanna and Columbia Counties, and a few more.

Can those be considered "branch campuses?" I've seen satellites of community colleges that were a room.

My point was that the NE quadrant of PA is underserved by the community college system. I think that, looking ahead, that will benefit CU because CU can help fill that gap.

[Bart]

If I have the time and can find this document I will read it. For now, I stand by my previous post. I believe if I have the time to do it, which I probably don't, I could pick apart the viewpoints of The Press-Enterprise. I think it a very biased accounting. "We knew this going in" also reinforces the idea that there should have been more calls to stop it, and there weren't. "Sour grapes" is not a phrase I use too often but it seems appropriate to use.

Believe me, the Press-Enterprise is no friend of Bloomsburg University and are biased against the Bloom U. The amount of debt for each school was per student $1,527 at Bloom, $1,806 at Lock Haven, and $5,307 at Mansfield tells the tale. Mansfield has $110 million dollar debt due to 5 dormitories built in 2016; they were at 2,000 students, now at 1,300. Bloom and LHU share that debt now...it's on the books.

[Bart]

No, it's not. In terms of geography, it covers an entire quadrant of the state. In terms of accessibility, it's not overkill. Also, that entire quadrant of the state has only 1 community college, Luzerne County CC, outside of Wilkes-Barre, so that is not accessible for people living outside of a small radius around Wilkes-Barre.

LCCC has several branch campuses, including 2 in Northumberland County: Shamokin and Watsontown. They have campuses in Lackawanna and Columbia Counties, and a few more.

[iupgroundhog]

The 8 page debt analysis report that the Press quoted is a CU internal document to provide a quarterly financial update to the Chancellor Greenstein, not sour grapes. It was written by the CU CFO. Other comments are from an interview with the CU president, including "We have known about this since the integration and knew the university would be in high risk because of what we brought together." In fact it likely was the reason for the integration.

Lock Haven has $49 million in debt spread across 2600 students. They demolished 2 dorms and have plans to level 2 more in 2025. They offloaded a science center to Clinton County Conservation District, and there are plans for the Clearfield Campus as a possible workforce development training site. They are trying to save money and align themselves with projected enrollment.

If I have the time and can find this document I will read it. For now, I stand by my previous post. I believe if I have the time to do it, which I probably don't, I could pick apart the viewpoints of The Press-Enterprise. I think it a very biased accounting. "We knew this going in" also reinforces the idea that there should have been more calls to stop it, and there weren't. "Sour grapes" is not a phrase I use too often but it seems appropriate to use.

Whether it's capital-expenditure related or related to enrollment, the environment has been known all along. It's too late to have this kind of a conversation. It's all one school now. Finger pointing isn't needed.

Does Bloom want out now? It's too late. CU is written in law.

[iupgroundhog]

Three universities in North Central PA is overkill.

No, it's not. In terms of geography, it covers an entire quadrant of the state. In terms of accessibility, it's not overkill. Also, that entire quadrant of the state has only 1 community college, Luzerne County CC, outside of Wilkes-Barre, so that is not accessible for people living outside of a small radius around Wilkes-Barre.

[Bart]

To begin, I think Mansfield should have been/should be closed. However, the unfortunate thing is that these are sunk costs. They've already been incurred in the past and now they must be paid for.

The problem I have with these postings from The Press-Enterprise is that they tend toward propaganda. The fact of the matter is that pre-merger LHU was in the best financial position, holding a substantial surplus. Bloom was not "strong", fiscally, no way.

The other thing that seems like sour grapes to me is that if Bloom folks don't like the arrangement now it seems like they should have pushed back harder when the idea surfaced. The Lock Haven community did push back hard, to no avail. If Bloomsburg University didn't want CU to happen I think they might have been able to prevent it. That didn't happen. In fact, as I recall, the Bloom community seemed to perceive the merger as though they were absorbing 2 other schools and, hence, growing.

Former BU President and now CU President Bashar Hanna is more responsible than any other person (outside of Greenstein himself) for the merger. In the end, I think CU is working, whereas the other triad in the West is not working.

The 8 page debt analysis report that the Press quoted is a CU internal document to provide a quarterly financial update to the Chancellor Greenstein, not sour grapes. It was written by the CU CFO. Other comments are from an interview with the CU president, including "We have known about this since the integration and knew the university would be in high risk because of what we brought together." In fact it likely was the reason for the integration.

Lock Haven has $49 million in debt spread across 2600 students. They demolished 2 dorms and have plans to level 2 more in 2025. They offloaded a science center to Clinton County Conservation District, and there are plans for the Clearfield Campus as a possible workforce development training site. They are trying to save money and align themselves with projected enrollment.

[iupgroundhog]

Press Enterprise summarizes "high risk update" report dated 12-18-23 that Commonwealth University will spend $10 million more than in brings in this year. Mansfield appears to be the cause of "crippling" debt with $110 million in debts that CU will have to carry for 33 years. Mansfield construction debts are "an anchor around our necks" per the president. CU will reduce scholarships, cut over 30 teaching jobs, and knock down buildings to cut costs and reduce debts.

The biggest financial challenge with the integration is Mansfield. Debts equal $1,527 per full time student at Bloom, $1,806 at Lock Haven, and $5,307 at Mansfield. Before integration, "Things were strong in Bloomsburg: less than strong, but sustainable in Lock Haven, and weak in Mansfield".

To begin, I think Mansfield should have been/should be closed. However, the unfortunate thing is that these are sunk costs. They've already been incurred in the past and now they must be paid for.

The problem I have with these postings from The Press-Enterprise is that they tend toward propaganda. The fact of the matter is that pre-merger LHU was in the best financial position, holding a substantial surplus. Bloom was not "strong", fiscally, no way.

The other thing that seems like sour grapes to me is that if Bloom folks don't like the arrangement now it seems like they should have pushed back harder when the idea surfaced. The Lock Haven community did push back hard, to no avail. If Bloomsburg University didn't want CU to happen I think they might have been able to prevent it. That didn't happen. In fact, as I recall, the Bloom community seemed to perceive the merger as though they were absorbing 2 other schools and, hence, growing.

Former BU President and now CU President Bashar Hanna is more responsible than any other person (outside of Greenstein himself) for the merger. In the end, I think CU is working, whereas the other triad in the West is not working.