Challenging Times

1
Challenging Times

• Bringing into focus PAs support of
• the Pennsylvania State System
• of Higher Education
• Fall 2004

2
In higher education, costs climb while state aid
stagnates

• Pennsylvanias public colleges and universities
  possess the third most expensive tuition in the
  nation.
• PA public four-year tuition is 69 above the
  national average.
• Source Digest of Education Statistics, 2002
  (http//nces.ed.gov/programs/digest/d02/)

3
PA State System Tuition Then and Now

• The PA State Systems operating budget covered
  by the state has fallen from 63 to 39, DIRECTLY
  affecting tuition.
• Tuition, 1983-84 1,480/year
• Tuition, 2004-05 4,810/year
• Fees, room and board, and books, etc., not
  included.
• Tuition rising faster than inflation
• 1,480 in 1984 should equal 2,700 in 2004
• Source PA State System of Higher Education
  Factbook 2004 (http//www.sytecpa.org/EIS/Syste
  m_Research/Factbook202004.pdf)

4
State Appropriations as a Percentage of EG
Expenditures
5
Undergraduate Resident Tuition
6
Pennsylvanias Citizenry

• Alumni
• PA State System alumni who reside in PA
  394,250
• Penn State alumni who reside in PA 271,836
• Pitt alumni who reside in PA 128,041
• The PA State Systems graduates stay in PA in
  greater numbers than any other PA college or
  university. An investment in the State System
  universities is an investment in the economic
  future of our state.
• Sources 1. PA State System of Higher Education
  Factbook
• http//www.sytecpa.org/EIS/System_Rese
  arch/Factbook202004.pdf
• 2. Penn States Fact Book
  http//www.budget.psu.edu/factbook/
• 3. Pitts Fact Book http//www.ir.pitt.e
  du/factbook/general/

7
Regional Competition and Educational Attainment

• Educational Attainment 2002 Maryland 37.6
• (Bachelors Degree or Higher) New
  Jersey 31.4
• Pennsylvania 26.1
• Average Personal Income 2002 Maryland 36,298
• New Jersey 35,521
• Pennsylvania 28,565
• Average Annual Earnings 2002 High School Diploma
  26,795
• Bachelors Degree 50,623
• Advanced Degree 72,867
• Source US Census Bureau

8
Are Pennsylvanias spending priorities in order?
9
Prisoners v. Students

• The state budget allots roughly 32,000/year to
  the Department of Corrections for each prisoner
  and 4,240/yr (via appropriations) to the PA
  State System of Higher Education for each
  full-time equivalent student.

One prisoner
approximately eight students
10
Policy Recommendations for Pennsylvania Higher
Education

• Pennsylvania should reduce reliance on tuition
  revenue by increasing appropriations for public
  higher education, including community colleges,
  the PA State System of Higher Education, and the
  four state-related institutions.
• If Pennsylvania reorganizes its priorities
  regarding its citizenry, corporations and
  business will come to Pennsylvania.

11
Rebalancing the Mix