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Challenging Times

Challenging Times. Bringing into focus PA’s support of the Pennsylvania State System of Higher Education Fall 2004. In higher education, costs climb while state aid stagnates. Pennsylvania’s public colleges and universities possess the third most expensive tuition in the nation.

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Challenging Times

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  1. Challenging Times Bringing into focus PA’s support of the Pennsylvania State System of Higher Education Fall 2004

  2. In higher education, costs climb while state aid stagnates • Pennsylvania’s 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 System’s 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/System_Research/Factbook%202004.pdf)

  4. State Appropriations as a Percentage of E&G Expenditures

  5. Undergraduate Resident Tuition

  6. Pennsylvania’s 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 System’s 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_Research/Factbook%202004.pdf 2. Penn State’s Fact Book: http://www.budget.psu.edu/factbook/ 3. Pitt’s Fact Book: http://www.ir.pitt.edu/factbook/general/

  7. Regional Competition and Educational Attainment • Educational Attainment 2002 Maryland 37.6% (Bachelor’s Degree or Higher) New Jersey 31.4% Pennsylvania 26.1% • Average Personal Income 2002Maryland $36,298 New Jersey $35,521 Pennsylvania $28,565 • Average Annual Earnings 2002 High School Diploma $26,795 Bachelor’s Degree $50,623 Advanced Degree $72,867 Source: US Census Bureau

  8. Are Pennsylvania’s 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

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