Challenging Times Bringing into focus PA’s support of the Pennsylvania State System of Higher Education Fiscal Year 2005 - 2006

In higher education, costs climb while state aid stagnates Pennsylvania’s public colleges and universities possess the second most expensive tuition in the nation. PA public four-year tuition is 65% above the national average. Source: Digest of Education Statistics, 2004 (http://nces.ed.gov/programs/digest/d04/) VT PA NH SC NJ

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¤, 2005-06: $4,906/year ¤Fees, room and board, and books, etc., not included. Tuition rising faster than inflation: $1,480 in 1984 should equal $2,782 in 2005 http://www.passhe.edu/adeptiv/upload/attach/Copy%204%20of%20Factbook%202005.pdf *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¤, 2005-06: $4,906/year ¤Fees, room and board, and books, etc., not included. Tuition rising faster than inflation: $1,480 in 1984 should equal $2,782 in 2005 *Source: PA State System of Higher Education Factbook – 2005

State Appropriations as a Percentage of E&G Expenditures

Undergraduate Resident Tuition

Pennsylvania’s Citizenry Alumni who reside in PA: PA State System (as of fall 2004): 405,782 Penn State (as of fall 2003): 271,836 Pitt alumni (as of fall 2004): 137,662 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.passhe.edu/adeptiv/upload/attach/Copy%204%20of%20Factbook%202005.pdf 2. Penn State’s Fact Book: http://www.budget.psu.edu/factbook/ 3. Pitt’s Fact Book: http://www.ir.pitt.edu/factbook/fbweb05/index.htm#institutionaladvancement

Regional Competition and Educational Attainment Educational Attainment 2004* Maryland 35.2% (Bachelor’s Degree or Higher) New Jersey 34.6% New York 30.4% Pennsylvania 25.3% Ohio 24.6% West Virginia 15.3% Average Personal Income 2004** New Jersey (3rd) $41,636 Maryland (4th) $39,629 New York (5th) $38,333 Pennsylvania (18th) $33,257 Ohio (25th) $31,135 West Virginia (49th) $25,681 Average Annual Earnings 2004* High School Diploma $30,640 Bachelor’s Degree $53,581 Advanced Degree $78,298 Source: *US Census Bureau, Current Population Survey **Bureau of Economic Analysis, U.S. Department of Commerce

Are Pennsylvania’s spending priorities in order?

Prisoners v. Students The state budget allots roughly $32K - $33K/yr to the Department of Corrections for each prisoner and $4,352/yr (via state appropriations) to the PA State System of Higher Education for each full-time equivalent student. One prisoner = approximately eight students

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.

Rebalancing the Mix