Public universities could enact 5th straight tuition freeze with greater state support

Mar. 24—HARRISBURG — The chancellor of Pennsylvania's publicly owned universities has a vision and a price tag for growing enrollment and graduating workers for industries facing labor crises, but it's beyond what's proposed in the budget plan of Gov. Josh Shapiro.

The Pennsylvania State System of Higher Education (PSSHE) would receive $563.5 million in the next budget under the governor's plan, a 2% increase totaling approximately $11 million.

The system's chancellor, Dr. Daniel Greenstein, seeks roughly $700 million — a $573 million appropriation from the state's general fund plus an additional $112 million almost wholly envisioned for student aid.

The funding request by the 10-university system would result in higher enrollment in priority academic areas identified by the Shapiro Administration like nursing, teaching and social services, Greenstein said. And, he said it would ultimately direct more skilled workers into those labor markets of need.

Approximately 60% of PSSHE students are enrolled in health care, business, education and other high-need areas, he said, adding that about 65% of PSSHE alumni remain employed in Pennsylvania 10 years after graduating.

"Expansion is purely a matter of funding. We over-index, we produce more in those areas than in any other area," Greenstein told state representatives during a House Appropriations budget hearing. "Expansion is all about state appropriation and funding for students. The biggest obstacle for growing more nurses is we need to make it more affordable for students."

Steep declines in student enrollment and mounting debt led PSSHE to consolidate six of its universities into two institutions this school year. Otherwise, the system faced insolvency and campus closures.

Bloomsburg, Lock Haven and Mansfield became Commonwealth University. California, Clarion and Edinboro universities became Pennsylvania Western University. The additional PSSHE schools are Cheyney, East Stroudsburg, Kutztown, Indiana, Millersville, Shippensburg, Slippery Rock and West Chester universities.

PSSHE cut $300 million from its operating expenses in three years while freezing tuition in each of the last four years.

A fifth consecutive freeze isn't out of the question but would only be possible under the system's heightened budget request, Greenstein said.

"What we would do in that environment is we would go back to the old ways. We would raise tuition. We would have to raise tuition considerably," Greenstein said of funding as proposed by the Shapiro Administration.

"I've been in front of this body asking for $700 million each year because that's what it costs to run this system," he said.

Approximately 88,650 students were enrolled in a PSSHE school in 2021-22, or nearly 30,000 fewer students compared to a decade prior. About 9 in 10 students are from Pennsylvania and are charged $7,716 for full-time in-state tuition. That's far cheaper than private schools and well below state-related universities like Pittsburgh and Penn State.

However, Greenstein said it's still among the highest rates in the nation compared to other publicly owned universities where, in some cases, it's free. While a proposal to fully fund PSSHE tuition for middle- and lower-income Pennsylvania students hasn't gained traction in the state Legislature, New York state offers an equivalent tuition-free plan to its residents.

State Rep. James Struzzi, R-Indiana, pointed out how PSSHE schools and community colleges are proposed for respective 2% increases while state-related schools — Pitt, Penn State, Temple, Lincoln — are proposed for 7.1% increases.

"I don't understand why we're underfunding affordable higher education and perhaps over-funding the state-related system," Struzzi said.

State Rep. Emily Kinkead, D-Allegheny, noted that two union contracts with PSSHE are up for renegotiation. Greenstein said that the elevated budget request "would allow us to treat our people fairly."

Kinkead also asked about what PSSHE is doing to promote its transfer policy allowing community college graduates to complete four-year degrees at its schools. Greenstein said a new protocol is soon forthcoming to facilitate such transfers.

"The governor I don't think put forward nearly the kind of investment that we deserve to see in our PSSHE system and certainly not as much as you asked for," Kinkead said.