PASSHE Institutions Merging

[complaint_hopeful]

I really don't understand this rationale. Didn't the legislature layout specific financial goals within (I think) a 3 year period (or less?)? The directives are not "mid-term" directives. Usually mid-term is over 3 years. To me, as an untrained observer, it looks like financially it is not coming together (particularly in the West) and Greenstein is trying futilely to change the narrative. "It was never about cost-savings". Give me a break.

From what I recall from the projections, the West didn't break even over 5 years even with modest enrollment growth predicted each year. And all 3 schools lost a lot of enrollment this past Fall which makes it much worse. I believe passhe showed what this meant in a BOG meeting.

The NE lost a lot of enrollment too which hurt their projections.

So both Triads will likely be in financial trouble for the next half decade...unless they start to gain enrollment again. I suppose they could cut a lot of employee expenses, but I doubt they'd be giving these raises if that was the plan.

I honestly think that leadership and the consultants think they're going to build something innovative that makes enrollment takeoff. <-- I think it's as simple as that.

Now, how likely is it that schools losing enrollment for a decade that are probably priced too high will grow? That's another debate.

[iupgroundhog]

Seeing what the costs are, I can believe it. The savings will likely come more mid-term than immediate. I think what people miss is these schools do things drastically different. Different software, processes, etc. Moving to 1 system costs a lot.

The bottom line is: The triads both need to drastically gain enrollment. That's probably the only way this can work.

On savings...many of these schools cut and cut for years. Merge 3 schools like that and you run out of things to cut.

I really don't understand this rationale. Didn't the legislature layout specific financial goals within (I think) a 3 year period (or less?)? The directives are not "mid-term" directives. Usually mid-term is over 3 years. To me, as an untrained observer, it looks like financially it is not coming together (particularly in the West) and Greenstein is trying futilely to change the narrative. "It was never about cost-savings". Give me a break.

[complaint_hopeful]

You can't possibly believe that. The entire concept is based on financial restructuring from Day 1. The Chancellor is a good BS'er.

Seeing what the costs are, I can believe it. The savings will likely come more mid-term than immediate. I think what people miss is these schools do things drastically different. Different software, processes, etc. Moving to 1 system costs a lot.

The bottom line is: The triads both need to drastically gain enrollment. That's probably the only way this can work.

On savings...many of these schools cut and cut for years. Merge 3 schools like that and you run out of things to cut.

[iupgroundhog]

Yes - And the Chancellor even says the Integrations weren't for cost savings. They're to expand student access to programs, etc.

You can't possibly believe that. The entire concept is based on financial restructuring from Day 1. The Chancellor is a good BS'er.

[complaint_hopeful]

That's the fallacy of administrative savings in mergers. If $100k is the market rate for a certain position at a 5,000 student school and it merges to create a 15,000 student school, while you might be able to eliminate two $100k positions, that third person can now argue they should be paid the market rate for a 15,000 student school.

There are also a lot of positions that can't be done across 3 campuses very well, such as alumni relations. So you end up with a model with 3 alumni directors and no cost savings.

Yes - And the Chancellor even says the Integrations weren't for cost savings. They're to expand student access to programs, etc.

Overall, Integrating is very expensive. It's hard to really see areas of savings.

[Fightingscot82]

I guess you have to be open-minded enough to consider that these 3 salary increases could be anecdotal; however, this appears to be in opposition to the entire merger model designed to achieve cost savings. I would say if it looks like exploitation, it probably is exploitation.

I can't believe the policy changes required to integrate their specific areas across all 3 institutions are that great. They should be just implementing a framework like they did before except it is for 3 campuses. I doubt their jobs are going to be much different. It seems like the raises are based on elevating the administrators to VP status.

Plus, the student population they are serving has diminished to a point likely in the neighborhood for the 3 campuses that is comparable to doing the same job at one of the schools 10 years ago.

I don't think the merger is supposed to result in administrative pay raises like this. Doesn't seem justified.

That's the fallacy of administrative savings in mergers. If $100k is the market rate for a certain position at a 5,000 student school and it merges to create a 15,000 student school, while you might be able to eliminate two $100k positions, that third person can now argue they should be paid the market rate for a 15,000 student school.

There are also a lot of positions that can't be done across 3 campuses very well, such as alumni relations. So you end up with a model with 3 alumni directors and no cost savings.

[iupgroundhog]

Several Edinboro University Administrators Given Significant Pay - Erie News Now | WICU and WSEE in Erie, PA

I guess you have to be open-minded enough to consider that these 3 salary increases could be anecdotal; however, this appears to be in opposition to the entire merger model designed to achieve cost savings. I would say if it looks like exploitation, it probably is exploitation.

I can't believe the policy changes required to integrate their specific areas across all 3 institutions are that great. They should be just implementing a framework like they did before except it is for 3 campuses. I doubt their jobs are going to be much different. It seems like the raises are based on elevating the administrators to VP status.

Plus, the student population they are serving has diminished to a point likely in the neighborhood for the 3 campuses that is comparable to doing the same job at one of the schools 10 years ago.

I don't think the merger is supposed to result in administrative pay raises like this. Doesn't seem justified.

[complaint_hopeful]

Several Edinboro University Administrators Given Significant Pay - Erie News Now | WICU and WSEE in Erie, PA

[KU_2014]

I think a college town should identify as such, and some don't. Some of the towns on this list probably don't identify as a college town or even feel like one. Does Media qualify as a college town? I'd also argue Middletown's eligibility. Edinboro for years has tried to market itself as a "resort town" almost like Conneaut Lake when people know it as a college town. Funny that State College or Lewisburg didn't make the list. Those are great college towns but I guess if it made sense we wouldn't be talking about a website called HomeSnacks.

Kutztown was also a glaring omission on that list, and I don't think I've ever heard anyone call Schuylkill Haven a 'college town'.

[ctrabs74]

They dropped from DII to NAIA. They played in the WVIAC from 1999 until its demise. Unsure if they migrated to MEC or joined another DII conference after.

I believe they migrated to the GMAC before dropping to NAIA.

[boatcapt]

They also fit the mold of schools who are outright closing:

Private
Enrollment under 1,000 students
Mediocre retention rates
Small endowment
Little or no reserves
Low fundraising capacity
High discount rate of sticker price
High debt level

It looks like they tried bringing in a lot of international kids (who usually have their government pay full sticker price) but when enrollment is down under 200 you're just playing a shell game with money. Parkersburg isn't an area that's going to attract many, either.

One fewer school using the Fighting Scots nickname, too!

All true. But they spead their demise by zeroing out their athletic programs...took a very difficult recovery and doomed it.

[Fightingscot82]

They were part of the WVIAC non-football voting block. Their commitment to athletics, even in the best of times, was lacking. When the WVIAC fell apart they were not invited to join the MEC and eventually joined the GMAC with a number of other former WVIAC teams.

They have had financial/enrolement problems for a number of years. They hired a new president who placed much of the blame for their financial problems at the feet of the athletic department and cut accordingly, ultimately taking them to the NAIA. Clearly...he was wrong!!

They also fit the mold of schools who are outright closing:

Private
Enrollment under 1,000 students
Mediocre retention rates
Small endowment
Little or no reserves
Low fundraising capacity
High discount rate of sticker price
High debt level

It looks like they tried bringing in a lot of international kids (who usually have their government pay full sticker price) but when enrollment is down under 200 you're just playing a shell game with money. Parkersburg isn't an area that's going to attract many, either.

One fewer school using the Fighting Scots nickname, too!

[boatcapt]

They dropped from DII to NAIA. They played in the WVIAC from 1999 until its demise. Unsure if they migrated to MEC or joined another DII conference after.

They were part of the WVIAC non-football voting block. Their commitment to athletics, even in the best of times, was lacking. When the WVIAC fell apart they were not invited to join the MEC and eventually joined the GMAC with a number of other former WVIAC teams.

They have had financial/enrolement problems for a number of years. They hired a new president who placed much of the blame for their financial problems at the feet of the athletic department and cut accordingly, ultimately taking them to the NAIA. Clearly...he was wrong!!

[Fightingscot82]

There's no way that can be spun to make any sense. In a broader sense it is definitely not a good look.

Its my understanding that these pay bumps are reflective of new roles in the 3-campus PWU. But that doesn't start until July 2022, so why now?

[iupgroundhog]

Well this certainly isn't a good look...

https://www.erienewsnow.com/clip/152...-big-pay-hikes

My faith in those running my beloved alma mater is pretty weak right now.

There's no way that can be spun to make any sense. In a broader sense it is definitely not a good look.