PASSHE Institutions Merging

[iupgroundhog]

Yes. Cheyney agreed to a state-overseen remediation plan after some financial mismanagement on top of declining enrollment. The plan recognized that Cheyney would run up significant deficits but if they met all success markers within a certain time period the system would forgive the debt taken on to cover their deficit spending. Cheyney did hit those markers and the debt was forgiven - about $40 million. The new president is doing a pretty decent job of keeping things stable. Their isolation allowed them to maintain mostly normal operations during the pandemic. I believe their case counts per capita are the lowest in the system. But with a corporate exec as president he's forging corporate partnerships that are gaining praise. They just need to figure out how to get more students to enroll. The 10-15 years of open admission cost them dearly in reputation.

I'd love to see some transformative big money thrown at Cheyney from a donor. Something that really puts them on the map and attracts attention (and students). Endow a position for Cornell West now that he's announced he's leaving Harvard. Hire a big money noteworthy HBCU president the next time around. Get a black CEO to create a big time partnership. Otherwise Cheyney will probably have a long road out of the bottom tier HBCUs with places like Coppin, Central St, Wilberforce, etc.

So, I had to google on this. The article below indicates that the much-ballyhooed corporate partnerships weren't that significant. It also suggests that these relationships were stalled and this came out before the pandemic. Also, this is from the Philadelphia Tribune whose owner is Chairman of the Cheyney Board of Directors so this is the most optimistic outlook you'll find.

https://www.phillytrib.com/news/stat...040c26cf2.html

[Fightingscot82]

Schools generally have reserves of varying amounts...but they're depleting those...especially with covid...which is one of the reasons for the extreme measures/time frame. I think it was the last BOG meeting that showed that there were schools with really low amounts of reserves. I forget if it was 30 days or 90 days. Then there was another group with slightly more. So once those schools burn those reserves, the others have to help.

The odd thing to me is that while each school has reserves, PASSHE kind of talks about the reserves like they go into 1 big account.

So I don't know. Someone else posted how like Pitt and Penn State make money on their main campus and lose on others. IF there is truly one account, and they won't shut schools...maybe they need to look at the system differently. Like some campuses will lose money, but the WCU's of the world will be like the 'main' campus that carries it?

I think Chaney is the only one who actually failed financially, but I think there was some type of loan from passhe/state to help them. Someone with more knowledge of this could clarify.

Yes. Cheyney agreed to a state-overseen remediation plan after some financial mismanagement on top of declining enrollment. The plan recognized that Cheyney would run up significant deficits but if they met all success markers within a certain time period the system would forgive the debt taken on to cover their deficit spending. Cheyney did hit those markers and the debt was forgiven - about $40 million. The new president is doing a pretty decent job of keeping things stable. Their isolation allowed them to maintain mostly normal operations during the pandemic. I believe their case counts per capita are the lowest in the system. But with a corporate exec as president he's forging corporate partnerships that are gaining praise. They just need to figure out how to get more students to enroll. The 10-15 years of open admission cost them dearly in reputation.

I'd love to see some transformative big money thrown at Cheyney from a donor. Something that really puts them on the map and attracts attention (and students). Endow a position for Cornell West now that he's announced he's leaving Harvard. Hire a big money noteworthy HBCU president the next time around. Get a black CEO to create a big time partnership. Otherwise Cheyney will probably have a long road out of the bottom tier HBCUs with places like Coppin, Central St, Wilberforce, etc.

[BADinPA]

How do you pay off the debt of closing a campus? Some of these schools owe $70+ million. The Chancellor has said numerous times that closure isn't an option.

It becomes a problem of the Commonwealth. Harrisburg was part of the problem so they (and PA taxpayers) have to accept the lion's share of the responsibility. I agree with IUPNation to cut the cord with Pitt, Penn State, and maybe Temple.

[Horror Child]

The triads are basically 2 schools failing fairly badly financially merging with a school breaking even to slightly in financial trouble. With the management and employees of the 3 schools (along with consultants( creating a new entity that they feel will be successful.

There's definitely red flags.

But do they really?

[Horror Child]

Correct. The population in PA has been on the decline for decades. Population of high school graduates peaked around 2008 and PASSHE enrollment peaked around 2010. Surprisingly, college admissions is always aware of demographic studies but has always been able to ignore them. I think nearly every college thought they could persist through the decline of high school population. The biggest names will always be able to but the bottom 2/3 will see a wide range of impact.

Why would they think they could persist? The data was/is right there in front of them to see...and respond to.

The big cliff is coming though. The decline of young people was already getting steeper but 15-20 years from now it will be catastrophic. We're not having enough babies to replace our dying population even after immigration. And that was before Covid. Now with Covid, the gap between births and deaths is growing. People aren't reproducing even with marriage rates slightly increasing. They're not even adopting at the same rate as a few years ago. Since March 2020 there's been a huge dropoff in the number of people who think they're pregnant or who are actually pregnant. An alarming drop off.

So for higher ed, like I said, catastrophic. For government, probably the same. Fewer people means less tax revenue. I bet some states will be headed for a budget crisis in 15 years.

Sooner than that.

[complaint_hopeful]

My whole take on this merger of 6 schools is that those in Harrisburg really don't know how to actually do this....and it will fail miserably..

The real fix is to take the money the Centre County Community College and The Oakland Remedial Academy receive and give it to the PSSHE.....

If you are not part of the PSSHE...then you should not get state funding. What the Commonwealth did in the 1960's for those two schools is no longer needed...they have BILLIONS in endowment.

Cut the cord......

I think they have some really good big-picture ideas of what they want to do.

They're largely putting the implementation plans up to University employees and consultants to create. Many of these employees have spent their entire career at these Universities.

The misconception is that the Chancellor is designing this all. To this point he hasn't. Now I'm curious to see what he presents to the board next month.

[IUPNation]

My whole take on this merger of 6 schools is that those in Harrisburg really don't know how to actually do this....and it will fail miserably..

The real fix is to take the money the Centre County Community College and The Oakland Remedial Academy receive and give it to the PSSHE.....

If you are not part of the PSSHE...then you should not get state funding. What the Commonwealth did in the 1960's for those two schools is no longer needed...they have BILLIONS in endowment.

Cut the cord......

[complaint_hopeful]

If the school is running at a defacite, isn't the PASSHE paying for it now??

Schools generally have reserves of varying amounts...but they're depleting those...especially with covid...which is one of the reasons for the extreme measures/time frame. I think it was the last BOG meeting that showed that there were schools with really low amounts of reserves. I forget if it was 30 days or 90 days. Then there was another group with slightly more. So once those schools burn those reserves, the others have to help.

The odd thing to me is that while each school has reserves, PASSHE kind of talks about the reserves like they go into 1 big account.

So I don't know. Someone else posted how like Pitt and Penn State make money on their main campus and lose on others. IF there is truly one account, and they won't shut schools...maybe they need to look at the system differently. Like some campuses will lose money, but the WCU's of the world will be like the 'main' campus that carries it?

I think Chaney is the only one who actually failed financially, but I think there was some type of loan from passhe/state to help them. Someone with more knowledge of this could clarify.

[complaint_hopeful]

As the saying goes, if you find yourself at the bottom of a deep hole, quit digging. Seems like the PASSHE answer is to come up with a more efficient shovel so schools can dig faster!!

The triads are basically 2 schools failing fairly badly financially merging with a school breaking even to slightly in financial trouble. With the management and employees of the 3 schools (along with consultants( creating a new entity that they feel will be successful.

There's definitely red flags.

[boatcapt]

How do you pay off the debt of keeping them open?

As the saying goes, if you find yourself at the bottom of a deep hole, quit digging. Seems like the PASSHE answer is to come up with a more efficient shovel so schools can dig faster!!

[boatcapt]

The schools do the projects, but apparently PASSHE is on the hook for it. So shut down a campus, and PASSHE would somehow have to pay it off.

If the school is running at a defacite, isn't the PASSHE paying for it now??

[boatcapt]

Yeah...it may be a lose lose. They're hoping the Integrations do it. I don't know.

If PASSHE were funded even at an average state level, we wouldn't be having this discussion.

Or if the PASSHE had four fewer schools, you wouldn't be having this discussion.

[complaint_hopeful]

How do you pay off the debt of keeping them open?

Yeah...it may be a lose lose. They're hoping the Integrations do it. I don't know.

If PASSHE were funded even at an average state level, we wouldn't be having this discussion.

[complaint_hopeful]

I'm not too well-versed on the debt. Who holds the schools' debt? And is it debt for the schools themselves or to PASSHE or the state of Pennsylvania?

The schools do the projects, but apparently PASSHE is on the hook for it. So shut down a campus, and PASSHE would somehow have to pay it off.

[Horror Child]

How do you pay off the debt of closing a campus? Some of these schools owe $70+ million. The Chancellor has said numerous times that closure isn't an option.

How do you pay off the debt of keeping them open?