PASSHE Institutions Merging

[boatcapt]

Big problem is that Harrisburg signs system-wide labor contracts that bring annual cost increases that surpass any funding increases from the state. Throw in demographic-led enrollment losses and you've got a big problem. Penn State and Pitt have so much to throw around they've been bailing out their failing branch campuses for years. I believe only 2 or 3 Penn State campuses operate in the black and no Pitt branches but Bradford and Johnstown were close. Don't quote me on that - their finances aren't public like PASSHE.

The argument for state funding of colleges & tech schools has been lost. Its obvious because you have politicians who repeat the Heritage Center's cliche "why are my tax dollars paying for the education of somebody else's kid?" The answer is pretty simple - you're more likely to earn more over your lifetime with some sort of post-secondary education. Even a college dropout usually earns more than a high school graduate without any sort of training. More income equals more tax revenue. We all win.

There's going to be a major reckoning in a few decades as the population plummets and the tax revenue can't come near to paying for the government infrastructure built up between the 50s and 80s. Not just higher ed but the parks/forest system, state hospitals, state prisons, massive state police force, etc. Plus the full-time state legislature.

But it is not that the PASSHE budget is "cut every year." It IS how the PASSHE chooses to spend its budget. Labor strife is never plesant but the PASSHE chose to sign the system-wide labor contracts that committed an ever increasing percentage of its static (or slightly increasing) state provided and decreasing tuition funded budget to its staffs.

The tax structure in PA is one of the most confusing I have ever had the "privlage" of paying into...particularly for what it provides.

[Fightingscot82]

I can't. But as I recall, it was a pretty easy Google search. Think I had to find the approved state budget and then scroll to the PASSHE section. I do recall one year were the budget was actually cut (Corbett??) and then every other year the budget was either the same as the year previously or increased over the previous year.

Yes Corbett was the big cut. He always claimed it was a loss of federal funding, but if true, that means that earlier he cut the budget and federal stimulus dollars from the Great Recession filled his previously-created gap. Either way, he cut the budget on a state bureau with lots of fixed costs forcing them to raise tuition something like 10% in one year. Maybe that was the charade he was going for to show public education as unworthy. Corbett's policies were almost cut & paste from Commonwealth and Heritage Foundations. Same as Lou Barletta without the Trump-esque veiled racism.

[boatcapt]

Can you provide a source for that budget info? What I remember is that Corbett made drastic cuts in his early years. After that, if it stayed the same it was still a cut. Under the Wolf administration, the budget has rebounded somewhat.

I can't. But as I recall, it was a pretty easy Google search. Think I had to find the approved state budget and then scroll to the PASSHE section. I do recall one year were the budget was actually cut (Corbett??) and then every other year the budget was either the same as the year previously or increased over the previous year.

[Fightingscot82]

A few months back I looked at the PASSHE approved budgets for the last 10ish years. Only once over the time frame was the budget cut. As I recall the years were evenly divided between the same budget the year before and a budget increase.

PASSHE is in a tough place...They can't really compete with the name universities and can't really compete on a precieved quality stand point.

Big problem is that Harrisburg signs system-wide labor contracts that bring annual cost increases that surpass any funding increases from the state. Throw in demographic-led enrollment losses and you've got a big problem. Penn State and Pitt have so much to throw around they've been bailing out their failing branch campuses for years. I believe only 2 or 3 Penn State campuses operate in the black and no Pitt branches but Bradford and Johnstown were close. Don't quote me on that - their finances aren't public like PASSHE.

The argument for state funding of colleges & tech schools has been lost. Its obvious because you have politicians who repeat the Heritage Center's cliche "why are my tax dollars paying for the education of somebody else's kid?" The answer is pretty simple - you're more likely to earn more over your lifetime with some sort of post-secondary education. Even a college dropout usually earns more than a high school graduate without any sort of training. More income equals more tax revenue. We all win.

There's going to be a major reckoning in a few decades as the population plummets and the tax revenue can't come near to paying for the government infrastructure built up between the 50s and 80s. Not just higher ed but the parks/forest system, state hospitals, state prisons, massive state police force, etc. Plus the full-time state legislature.

[Bart]

Have the big mahoff's figured this out yet?

The foundation is separate from the university and has it's own nonprofit status with the aim to help Bloomsburg. Since it is an independent, private,non-profit organization, they should be able to protect the assets from poachers. Plus all funds are distributed per the donor request.

[iupgroundhog]

A few months back I looked at the PASSHE approved budgets for the last 10ish years. Only once over the time frame was the budget cut. As I recall the years were evenly divided between the same budget the year before and a budget increase.
.

Can you provide a source for that budget info? What I remember is that Corbett made drastic cuts in his early years. After that, if it stayed the same it was still a cut. Under the Wolf administration, the budget has rebounded somewhat.

[boatcapt]

Yep. And the decreased state funding made the PASSHE price creep higher and higher to the point that students looking to go there deem it a better value to just pay a little more to go to one of the other schools.

Layer on top of that competition from the SNHU's of the world that can provide online classes anywhere...and you have a hyper competitive market.

So what do you do? Do you work on trying to get your quality/brand image better? Do you work on cutting costs more? It's really probably the toughest market spot to be in.

A few months back I looked at the PASSHE approved budgets for the last 10ish years. Only once over the time frame was the budget cut. As I recall the years were evenly divided between the same budget the year before and a budget increase.

PASSHE is in a tough place...They can't really compete with the name universities and can't really compete on a precieved quality stand point.

[complaint_hopeful]

A good reason to fight against the merger plan. If a university can keep it's name and athletic programs, they should be able to keep the money they raised.

I would think they'd let them keep it as alumni donate to specific schools. If they thought the money went elsewhere, they'd likely not give. Which gets into a lot of the discussions we're having.

[Fightingscot82]

That really is excellent. But how are you going to justify keeping that $60 million at the Bloomsburg campus?

My understanding is that just like with other functions, back-end operations for alumni relations & fundraising will be pooled (database management, prospect research, estate giving, etc) but Bloom will ask Bloom alumni for money for Bloom purposes. Endowments are managed differently at each school. The Edinboro group I'm affiliated with holds roughly $1.5 million in endowed funds for Edinboro. Since we're a separate 501c3 non-profit that money's not going anywhere. There would be some legal work to combine foundations.

[iupgroundhog]

A good reason to fight against the merger plan. If a university can keep it's name and athletic programs, they should be able to keep the money they raised.

Have the big mahoff's figured this out yet?

[Bart]

That really is excellent. But how are you going to justify keeping that $60 million at the Bloomsburg campus?

A good reason to fight against the merger plan. If a university can keep it's name and athletic programs, they should be able to keep the money they raised.

[Fightingscot82]

That's not even mentioning the elite Carnegie Mellon level.

I think by his description they're Tier 2.

[IUPbigINDIANS]

Seems that there are three "types" of 4 year colleges in PA. 1. Schools with a big name (Penn State, Pitt and I guess Temple). These schools use that name to charge higher tuition and are able to bring in a very large number of students. 2. Privates that "sell" their academic superiority/exclusivity. They bring in students looking for higher academics and/or the snob appeal of an "exclusive" college. 3. Schools that compete by being the lowest priced and least exclusive in town. They are like a volume car dealer, you get the best price but none of the frills (big name, academic reputation, snob appeal). Id put the PASSHE in the last category. Problem is that not as many people are buying cars anymore. Also the dealership seems to have forgotten its business model and are trying to compete with the 1's and 2's.

That's not even mentioning the elite Carnegie Mellon level.

[complaint_hopeful]

Seems that there are three "types" of 4 year colleges in PA. 1. Schools with a big name (Penn State, Pitt and I guess Temple). These schools use that name to charge higher tuition and are able to bring in a very large number of students. 2. Privates that "sell" their academic superiority/exclusivity. They bring in students looking for higher academics and/or the snob appeal of an "exclusive" college. 3. Schools that compete by being the lowest priced and least exclusive in town. They are like a volume car dealer, you get the best price but none of the frills (big name, academic reputation, snob appeal). Id put the PASSHE in the last category. Problem is that not as many people are buying cars anymore. Also the dealership seems to have forgotten its business model and are trying to compete with the 1's and 2's.

Yep. And the decreased state funding made the PASSHE price creep higher and higher to the point that students looking to go there deem it a better value to just pay a little more to go to one of the other schools.

Layer on top of that competition from the SNHU's of the world that can provide online classes anywhere...and you have a hyper competitive market.

So what do you do? Do you work on trying to get your quality/brand image better? Do you work on cutting costs more? It's really probably the toughest market spot to be in.

[boatcapt]

Seems that there are three "types" of 4 year colleges in PA. 1. Schools with a big name (Penn State, Pitt and I guess Temple). These schools use that name to charge higher tuition and are able to bring in a very large number of students. 2. Privates that "sell" their academic superiority/exclusivity. They bring in students looking for higher academics and/or the snob appeal of an "exclusive" college. 3. Schools that compete by being the lowest priced and least exclusive in town. They are like a volume car dealer, you get the best price but none of the frills (big name, academic reputation, snob appeal). Id put the PASSHE in the last category. Problem is that not as many people are buying cars anymore. Also the dealership seems to have forgotten its business model and are trying to compete with the 1's and 2's.