PASSHE Institutions Merging

[IUPNation]

Interesting because they raised 80 million for the new science building.

The Foundation for IUP lists that they control 250 million in real estate assets..which is separate from the cash endowment...

[iupgroundhog]

Former LHU president in the running for a new gig.

https://www.lockhaven.com/news/local...ss-university/

I guess he doesn't like being Senior Advisor to the Chancellor for Integration Strategy.

[iupgroundhog]

Interesting because they raised 80 million for the new science building.

[IUPNation]

Poor leadership and declining number of students, just like every other PASSHE school...except West Chester.

[boatcapt]

Poor leadership and declining number of students, just like every other PASSHE school...except West Chester.

[IUPNation]

According to the enrolement numbers provided in the article, IUP has it's own issues to address. I also note that their endowment level is among the lowest in the PASSHE system.

[IUPNation]

I don't see any gain for Temple in that scenario. They're nowhere near the levels of Pitt and Penn State in terms of financial strength nor are they into the whole branch campus thing. I also don't see a gain for Penn State. Edinboro is 30 miles from one of the only two Penn State outlet stores that are doing well and in the same county. Cal is very close to Penn State Fayette. But Clarion is fairly isolated from other schools. They're about 30 minutes from Penn State DuBois but there's no real benefit there.

Temple has a campus in Ambler, Montgomery County and space in a Center City in a office building in Penn Center...or it used to...

[Fightingscot82]

Former LHU president in the running for a new gig.

https://www.lockhaven.com/news/local...ss-university/

One of the other finalists, Dione Somerville, is the former VP of Student Affairs at Bloomsburg. She was a finalist at Edinboro during their last search.

[Bart]

Former LHU president in the running for a new gig.

https://www.lockhaven.com/news/local...ss-university/

[boatcapt]

That's a shocking number if true but you also have to think about sample. Possibly for the wealthiest schools out there but for former state teachers colleges (about 1/3 of all publics) the endowments tend to be MUCH smaller and more restricted. Old Man Smith and his wife pinched pennies and donated $50k to Northwest McState for the Old Man Smith Family Scholarship.

I was surprised by the number as well. I learned a few surprising things about the whole endowment process when I was setting up my dad and brothers. Bottom line is you need to be VERY specific about how your money is managed and spent and also specific about what happens if your money is not spent.

I'm not saying the PASSHE schools in question should use their endowments to pay for general operations, im saying that a school like Temple or PS could use a portion of their unrestricted endowment, AND the millions of $'s PA gives them every year to purchase these schools.

Do I think it will happen? No. Would the 6 PASSHE schools be in a better position to survive in some form if it did? Yes.

[Fightingscot82]

Difference between can't and don't. A school such as Temple in this discussion can use unrestricted endowments for whatever they want, be it general operation or to fund the losses of an asset the obtain (like, say 3 former PASSHE schools). They may chose not to do any of that and just reinvest the $.

I read on line that it is estimated that 55% of college endowments are unrestricted.

That's a shocking number if true but you also have to think about sample. Possibly for the wealthiest schools out there but for former state teachers colleges (about 1/3 of all publics) the endowments tend to be MUCH smaller and more restricted. Old Man Smith and his wife pinched pennies and donated $50k to Northwest McState for the Old Man Smith Family Scholarship.

[boatcapt]

Its very rare that schools use unrestricted endowment to pay for general operating needs. Most unrestricted endowments unless part of the gift agreement are still used as scholarship dollars just at the school's discretion. In fact, the only examples of using unrestricted endowment to stave off budget deficits have been the small privates trying to avoid closure. Nobody in PASSHE is there. Plus PASSHE school endowments are "owned" and operated by legally separate 501c3 non-profits with their own boards and staffs. The state can't confiscate those funds. Its actually a big sticking point of the integrations, particularly because some schools' foundations have employees doing work on behalf of the university. I imagine those employees will be converted to "new university" employees.

Difference between can't and don't. A school such as Temple in this discussion can use unrestricted endowments for whatever they want, be it general operation or to fund the losses of an asset the obtain (like, say 3 former PASSHE schools). They may chose not to do any of that and just reinvest the $.

I read on line that it is estimated that 55% of college endowments are unrestricted.

[Fightingscot82]

A schools endowment is made up of a number of parts...some restricted (for a specific purpose) and some unrestricted (general operation of the college). Restricted endowments are for a specific purpose, such as a particular scholarship or the funding an academic chair. Schools use these restricted endowments to relieve them of the need to pay for that particular thing. School then turns around and uses the money that it would have used to fund that thing and uses it elsewhere in the college. Using Temple as an example, here is how it works (from Temple policies on endowment and giving):

If an operating budget fund has the same purpose as an available endowment and/or gift fund, expenditures should first be made from the endowment and/or gift fund, or any available unrestricted endowment/gift funds with balances, until the endowment/gift revenue is exhausted.

Its very rare that schools use unrestricted endowment to pay for general operating needs. Most unrestricted endowments unless part of the gift agreement are still used as scholarship dollars just at the school's discretion. In fact, the only examples of using unrestricted endowment to stave off budget deficits have been the small privates trying to avoid closure. Nobody in PASSHE is there. Plus PASSHE school endowments are "owned" and operated by legally separate 501c3 non-profits with their own boards and staffs. The state can't confiscate those funds. Its actually a big sticking point of the integrations, particularly because some schools' foundations have employees doing work on behalf of the university. I imagine those employees will be converted to "new university" employees.

[boatcapt]

Then why would you suggest that Temple or Penn State use their endowments to plug the budget deficits at PASSHE schools?

A schools endowment is made up of a number of parts...some restricted (for a specific purpose) and some unrestricted (general operation of the college). Restricted endowments are for a specific purpose, such as a particular scholarship or the funding an academic chair. Schools use these restricted endowments to relieve them of the need to pay for that particular thing. School then turns around and uses the money that it would have used to fund that thing and uses it elsewhere in the college. Using Temple as an example, here is how it works (from Temple policies on endowment and giving):

If an operating budget fund has the same purpose as an available endowment and/or gift fund, expenditures should first be made from the endowment and/or gift fund, or any available unrestricted endowment/gift funds with balances, until the endowment/gift revenue is exhausted.

[Fightingscot82]

Yes, I do know what an endowment is. I endowed a scholarship (restricted) and made an unrestricted endowment to the colleges general fund in my father and my brothers names a couple of years ago.

Then why would you suggest that Temple or Penn State use their endowments to plug the budget deficits at PASSHE schools?