March 11, 2026 · APPROPRIATIONS · 14,956 words · 12 speakers · 153 segments
Thank you. Thank you. Thank you Thank you. We're about to get started.
Yeah, you do. Yeah, you do. Wow. How are you, sir? Hi, good to see you.
Good afternoon and welcome to one of two of our afternoon hearings today. Today we are joined by the Pennsylvania State System of Higher Education, as well as our friends at the community colleges throughout this Commonwealth.
Before I begin, Chairman Struzzi, any introductory comments? Yes, thank you, Chairman Harris. Good afternoon to everyone, and thank you for being here. A very quick overview. The governor is proposing level funding for both the state system of higher education and community colleges. For PASHE, $625.8 million proposal for the upcoming fiscal year. For community colleges, $277.3 million for the upcoming fiscal year. And it's also important to note that both of your requests were higher than what the governor is proposing. for PASHE roughly 651.8 million dollars and for community colleges 294 million dollars. Those were your budget requests. So I think as we go through the hearing it'll be important for you to help us understand why you are asking for the additional funding and why the governor is proposing level funding. Thank you. Thank you gentlemen. In the middle of the table is our timekeeper. All of our members will have five minutes to ask their questions. When the light turns green they will proceed with their questions. When it turns yellow, that means that there are 30 seconds left. And when it turns red, that means time has expired. We would ask that you finish your comments. Before we begin,
if we could all get our testifiers to stand so I can all swear you in. So I can swear you all in. Do you solemnly swear that the testimony you're about to give is the truth, the whole truth, very distinguished guests. Listen, I have no problem with the president of Slippery Rock being here. We appreciate your presence. I do want to make mention, though, that the state senate got the president of Millersville University during their budget hearing. And I won't ask questions on how or why that happened I just want to be very clear that Millersville is the Harvard of the state system There are at least as I look there are at least two Millersville grads right here on this committee So I'm just putting that out there that we love Millersville. Anyway, we'll start. Thank you.
Oh, and we have a student at Millersville right now, right?
See, there it is.
Oh, and my fellow this year is the, where's he at? He is the student body president of Norrisville University. He's a fellow in the appropriations office. All right.
We'll get started with Representative Kincaid.
Thank you, Mr. Chairman, and proud Bloomsburg graduate. So I actually think the good chairman from Indiana would set this up very nicely because my first question is there's a big discrepancy between what your proposed budgets were and what the governor proposed. And can you explain that?
Certainly. I'll start. Thank you. The Board of Governors is required to submit a budget request in October, and we worked and did submit that, and we took a look at our situation and determined that the 5% increase that we requested would enable us to keep tuition at the same level into the following year. So we're incurring cost increases and other factors, and we felt that a 5% increased less than what we had requested the previous year and requires us to focus on keeping our belts tight. We saw some improvement in retention, and retention, of course, means more students are staying, so therefore there's additional revenue over what we had expected. And so we felt that 5% would put us in a position to be able to hold tuition level. We still have that position. We understand the challenges that are existing in the current budget and understand the governor's decision. We feel that an investment in the state system of higher education is an investment in the future of the Commonwealth and continue to advocate, hoping that we can get some consideration for our increase so we'll be able to hold tuition level. If we were to not get funding, we would have to step back and take a look at the factors that exist at that point in time. I'm not going to commit right now to say that would mean that we would increase tuition by some certain level. We have to look at retention. We have to look at how enrollments are shaping up for next year, factors around cost of operating the universities. And, of course, this process takes place over many months. And by July, we would hope to be in a position where we have the information that we need to be able to determine what we're going to do next. Thank you.
For the community colleges, while, again, I'll reiterate my colleagues' comments about we appreciate any consideration of funding and understand the state's budget. we did advocate for this six percent increase because we looked at our budgets as the 15 community colleges the revenue and expenses and the gap that would be in place if we did not have additional funding and since a third of our funding is is expected to come from the state We divided actually that by three. So this is just the state portion of that gap between revenue and expenses Since we were flat funded this year and requested an increase for this year being flat funded next year would just add to the situation that we currently in which is we had to curtail expenses in order to meet our budgets. And our boards do require that balanced budget. So if this goes into a second year, there will have to be more cuts to expenses, and we do not want to impact student success or access. Thank you.
Chancellor, as we're talking about retention, I think one of the things that we need to talk about is student safety and more so about good Samaritans on campus who try to act in the best interest of other students who may be experiencing medical emergencies. At Bloomsburg, there were two students who were charged after acting as Good Samaritans. They had not been drinking. They were not involved with the incident that led to this individual's alcohol poisoning, and yet they were the only people charged. I know that PASHE has a policy protecting Good Samaritans. So my question is twofold. One, are you amending that policy in any way to make sure that you're protecting students who act in good faith to help others? And what consequences are in place for campus police who don't adhere to those policies?
I recall the conversation we had around that. I would have to refresh my memory on some of the facts associated with it, but generally speaking, having served as a president, we have a police force on our campus. And the police force, it's a commissioned police force, and they make the police judgments. The president doesn't overrule the decisions, the law enforcement decisions made by police. So I would, it's a complex situation. I think that, frankly, I'm very supportive of the Good Samaritan policy. Our policy was always that we wanted to make sure that our students got home safely in bed. and if somebody happened to have consumed alcohol, we would much rather that they not decide to stay out somewhere so that they don't get caught and instead would come home and be confident that they could safely get to bed. That's been the typical way that it's handled on the campuses. But when the police become involved, it becomes more complex. And I actually would have to dig into it a little bit to see where the policy ends and where the law begins. and typically our understanding is that the law would trump a policy. So I would have to really dig into it a little more to be able to give you a more definitive answer than that. But in terms of the Good Samaritan policy, it's a good policy. It works. Again, I don't recall the specific circumstances that led to the decision that was made, but I'll look into it further.
Thank you. And I would appreciate actually having a further conversation with you about ensuring that the policy actually does protect truly good Samaritans and not just students who have imbibed alcohol.
Thank you.
Thank you, Mr. Chairman.
Thank you, gentlelady. Representative Nelson.
Thank you, Mr. Chair. Welcome, everybody. A special shout out to Dr. Stanley. It's great to see you up there at that table after working so many years together in Westmoreland County. I'm going to begin my questions with the community college and then we'll shift over to Pashy's side. So it really was a nice dovetail because you had mentioned this concept of a third, you know, and in an ideal world, community colleges are supposed to be funded in three thirds, right? It's a third from the state, a third from the local or county, and then a third in tuition. However, reality does, you know, rarely achieves that ideal. So can you touch on what you're seeing the actual commitment to that third, third, third is for our community colleges?
Certainly, and it's great to see you as well. Hope you're doing well. So in code for community colleges, it does state the third, a third, a third as you've laid out. Unfortunately, since the code was enacted, that has not been reality. It is different for each particular college, and depending on the sources that come from the local community and then the tuition. Unfortunately, at this point, these students are bearing much of the burden of attending a community college, so it is fortunate that we are so affordable and reasonable so that we're not limiting access. But it is also dependent upon the particular institution and, again, their local support and how the state support factors into that.
Sure, that's great because at least my understanding, rough numbers are community colleges. They're number two biggest population, about 245,000 students, give or take. And I think it works out to about $1,000 a student. We had the state-related zine earlier, and they're getting five, six, nine. So I understand the importance of being able to fund one of the biggest local participation areas. I'd like to shift over to the PASHE side. And we asked a similar line of questions with our state-relateds, and that was in the area of our SIP codes or the classification of instructional programs. You know, we were fortunate. Both chambers unanimously enacted the GrowPA scholarships, and I'm fortunate to serve on that FIA board. But there seems to be this SIPGAP conundrum, particularly with PASHE schools. It looks like about 1,700 students that were initially awarded those $5,000 scholarships were then said, well, you may not qualify, not because of the students' action, but because of PASHE's disconnect with the SIP codes. What are we doing to correct that gap?
This is a silly problem, I'm afraid. We don't create the SIP codes. They are handed to us.
But you choose the SIP codes, sir.
Well, the programs are classified within SIP codes, but we can have within this great structure of the codes, there are two-digit codes and six-digit codes, and there are different levels of refinement. And I think what has happened was never what was intended because you might have a program that absolutely meets the spirit of the program, but because it has a slightly different name or a slightly different focus it falls into a different category I guess the concern is we want to really see our PASHE schools aggressively looking to resolve this. Well, we're working on it. Absolutely.
Do you have any updated information on that? Well, I know I'm tight on some of that time, but in the state-related, it's talked about some glitches that had held up student funding and other things, FAFSA funding in past years. You know, the students have signed this master promissory note. We just want to make sure that these students that are committed to staying in Pennsylvania that, you know, will actually be honoring that while we're in the midst so they don't get hit with this $5,000 bill, you know, on top of it. Because it's a big swing for families. We're working with Thea and trying to sort all this out. And we're absolutely committed to making it work.
We got blindsided by this, the same as everybody else.
Will PASHE be honoring that $5,000 and holding that, or are you planning to charge those students in this gap? Are you going to honor that $5,000?
Well, as long as the funding is clarified, certainly we are prepared to honor the funding for the students. We don't want this to fall on the students. It's not their fault. This is just a bureaucratic glitch, and we commit to making sure that it gets worked out.
Okay, thank you. Thank you, Mr. Chair.
Thank you, gentlemen. Representative Young.
Good afternoon, everybody. I'm going to go ahead and give my little shameless plug to Community College of Philadelphia for the reasons that our chairman had said earlier in reference to his experience. I will say I do have a daughter who attends a school, and as a parent, because I'm a parent person in this space, I always like to remind people of that, and we like to entrust our children with systems and places that will help nurture them in a holistic way. And so I will say my daughter has found her voice at CCP along with a community and independence. So thank you for your leadership in that space. Recently, I attended an opening at CCP, which is the Healthcare Simulation Lab. and as innovative as that lab is and as welcoming and as encouraging as those students were when they were explaining how those real-life experiences helped give them confidence in the workforce, can you tell me when it comes to managing tight budgets, and this is not just for CCP, this is for whomever, but when you are creating such initiatives that is really bringing that classroom-to-career type of pathway to your student body, they're excited and they're open and they're helpful in wondering like what the world can really look like for them but you as a system is sometimes challenged with managing a tight budget so when it comes to managing tight budgets how are you past how are your Apache universities and community college colleges deciding what they can scale back on while still keeping campus safe up-to-date and welcoming.
Is that directed at me?
I think it was directed at... It could be for anybody, but clearly CCP can answer as well.
Certainly. So there is a prioritization around health and safety, always, at the top of the list. And so when we're budgeting, those are always put into the budget. Now those costs do continue to increase as well as the support services needed and wanted for student success. So to your point, other things do have to go away. And certainly you know Dr Marshall made a very very wise decision to use other funds for her new building and programs And so whenever possible, the presidents also seek other sources of revenue. So whether that be Perkins or other grants, federal grants, state grants, to try to ensure that we not only have health and safety and student support services, but that we can be innovative and meet the demands of the workforce and continue to be the multiplier for our communities and what they need. May I just add, I think Dr. Stanley is absolutely correct that in this time where higher education has become more competitive, we have become more and more interested in prioritizing collaboration and partnership, and that is indeed a way that we do keep costs down. So at BC3, we just announced that we're going to be starting a radiological technology program, or RAD Tech. We did that in partnership with the hospital. They will be donating equipment. We had a private donor to build out the lab. So it really does fall on us to, of course, ensure health and safety, but to be more innovative in our thinking and our partnerships and really reaching out and seeing where we have good matches in the community. Since there was a shout-out to CCP, this is Dr. Marshall. I'd like to respond to that. Thank you, Representative Young, for highlighting our health care simulation lab opening. As Tuesday mentioned, we did use additional funds supported by Perkins to provide some of that. And part of it is exciting because we have the real-life mannequins that have been funded by Perkins that allow our students to take an opportunity to learn in a simulation setting how they're going to treat patients, right, and to getting that confidence that we speak about that community colleges are so great at building for students who are not sure about their pathway. So we are excited about that. In addition to that, we have recently just launched our Navy expansion project. This was a public partnership with the U.S. Navy to provide an investment of $2.7 million to provide programming to support students in short-term programs through naval welding and non-destructive testing as we're working to help create a pipeline to support the shipbuilding industry, particularly the Navy Yard. So it's an example of ways that we are looking to innovate. Part of the work that we have to do, as Representative Young has mentioned, is about innovation and making sure that we're providing a high-quality education for our students, and we can't stop doing that even though we may have some challenges on the funding side. So we are looking at alternative funding structures, but it is very tight. So thank you for that question.
Thank you. Thank you. Thank you. Channel Lady, Representative Moustello. Thank you, Chairman Harris.
First off, I want to welcome the folks here from Butler County. I'd like to thank them for making the trek out here. Dr. New Power, longtime president at Butler County Community College, the new president, Megan Covel, and Dr. Riley here from Slippery Rock University, of which the good chairman visited last year. Right? Yes, you did. Yes, exactly. And I do hope you come back next time. Hopefully, Dr. Riley will be there to show you're on campus. But I have a couple questions here. The first one I'd like to address with the two presidents here, President Covo and President Riley. The dual enrollment program that we know is through the Pennsylvania Department of Education. And so it not money directed to the universities or the colleges but it goes through the Department of Education kind of like a grant program And I know BC3 uses it I not sure about Slippery Rock University if you use it And just generally speaking, what types of kids use this program? I could start with President Koval, if you'd like. Like, what types of students are you looking for? Do they seek you out? Do you go into the high schools to talk about the program? Yeah, that's a great question. Thank you, Representative Mostello, and good to see you here in Harrisburg.
A dual enrollment is an area of growth for many institutions across all sectors of higher education, but particularly I would say for community colleges and certainly for BC3. So in this current academic year, we had a 25% growth in dual enrollment. And we adjusted some cost, some things on the cost side of the house. We also really ramped up the relationships with our existing high schools to get those numbers up. But I think our question about who it's for is a really good one, because I think at times there can be a misconception that it's for maybe just high-achieving students who just want to knock out a few college courses at a lower price point, and that is certainly a very fine use of dual enrollment. But from our perspective, we are trying to expand it. So, for example, this coming fall we will now be in all high schools in Butler County, and we really view it as a point of access to higher education. So getting to those students who maybe thought college isn't for me and I'm not sure if I can do this, and now they have the opportunity in their high school and they take that class and they say, I have that confidence, I can do that. Some students will take those credits and go to warrior institutions and some will come to BC3.
And do you still have a campus in Lawrence County?
We do, BC3.
And are you reaching out to any of those kids in that county also?
Yeah, great question. We just opened a new campus in Lawrence County, BC3 at Lawrence. And for the first time this fall, we will be running a program called Early College Pioneers there,
where the high school students will be able to come to that campus in the morning. And does Slippery Rock have anything?
We do engage in the dual enrollment, I think, pretty typically for a four-year institution. I would say that one of the areas of growth for us has been in our STEM-H programs. So we do have a fast-track program in engineering. We just added a full complement of engineering programs at Slippery Rock, so I think that that's great. I think that we do also, I think, try to target our education programs and have really targeted teachers or future teachers. We do, enrollment increase was about 1,400 students over the past year, so that's been great. We're very excited about that. And four universities within PASHE did receive those grants. So an area for growth for us. And I do think to echo Megan's praise for the program is that it does allow students to see themselves as a university student, as a college student, and to come in with a level of confidence that we don't sometimes see for all of our students.
Good. I just want to shift gears for a second just for a quick question about some other things. We've heard a lot during these hearings. I'm sure all of us, when we go back home to our districts, we hear the same thing about skilled workers, skilled trade workers. What are each of your colleges doing to promote any sort of work with students, maybe not the traditional students, the non-traditional students, to get them involved in the skilled trades? Because that's all we're talking about here with data centers, growth, opportunity, all that. but I know that colleges You know, universities, community colleges have a lot more leeway on what you can do. Is there anything that maybe sets you above and beyond some of the other schools in both community colleges and Apache? Sure.
So let me talk about a program that we're very excited about, which is a partnership with the Carpenters Union. So what we did, and Representative Mostello, thank you for your support of this program. But what we're doing at Slippery Rock University is actually recognizing the training and education that our students get through the Carpenters Union. That is then translated into actual credit, credit-bearing activity within Slippery Rock University. So the people that are in the Carpenters Union are actually allowed to get a degree. Let me just say one more quick thing because it's such an exciting thing. I see the red light. No, no, no.
I'm going to ask the chairman if I can have 30 seconds because I haven't asked for it this week yet. I haven't asked this week.
What's great about this program is that oftentimes we send people back to the community college partner to get their associate's degree. then they can come to Slippery Rock and get either a full bachelor's degree or we've got three stackable credentials that stack to a bachelor's degree in applied science. So we're very excited about the program. I hope that it serves as a model for other universities moving forward.
That's good. Mr. Chairman, can the president, she drove a long way.
Okay. President Cova, I didn't even.
I can be very brief.
I would just say that a benefit of being in a community college and certainly sharing a county with Apache institution, we're very connected to local business and industry. And so anytime something new is happening with a business or industry, so for example, down the road from BC3 is Cleveland Cliffs, they just got some new machinery and some new heating and cooling equipment in. And so we were able to set up a program for them to train their employees on the usage of that new equipment. Now that might be pretty short term, although getting used to it, but we can keep abreast of what's going on and make those changes quickly.
That's good. Thank you. Thank you so much, Mr. Chairman.
That was more like a minute, but... All right. Representative Mullins.
Thank you, Mr. Chairman, and hello, everyone. Thank you so much for being here. Dean Fiorentino, Dr. Fiorentino, Chancellor Fiorentino, very proud to know you and to recite all those titles. So it's good to see you. We hail from our paths first crossed at Westchester University way back now. But it's good to see you in this setting now.
Likewise.
Wanted to talk about online education and enrollment. We've seen a significant growth in students enrolling in online programs offered by institutions like Western Governors University and Southern New Hampshire University. and approximately 45% of students enrolled in fully online programs attend institutions outside of the state. Just wondering what plans or strategies PASHE, the state system, has to try to grow its offerings for online learning. Are there barriers that you're facing that are presenting challenges and limits? just love your perspective on that. Thank you.
Nice to see you sir Well you right We can ignore the market the online market for undergraduate online programs It's huge and getting bigger. There are very aggressive advertisers. Certainly, our longtime traditional bread and butter has been 18 to 22-year-old students who come to the campus. And that has been a declining population, as is well known. and we are working very aggressively. Actually, it was kicked off in a big way during the pandemic, of course, because we had to shift everything. And we learned a lot during that time about online programs and learned that we could deliver it, we could deliver them effectively. We have a longer history of offering graduate programs, but we are seeing interest from our traditional age students in taking some online classes. one of the big potential growth areas for us is the non-traditional student population, people who maybe took some credits and stopped out. They want to come back and complete a degree, and that's much more likely to be an online population. And we have campuses where we're expanding the footprint aggressively as we go. We need to move into this market more vigorously because a lot of the market has moved in that direction. And it's an ongoing effort. We're involved in doing program sharing amongst our universities so that we can aggregate and build to have these kinds of program offerings more efficiently. But it's a major area of focus for us.
Very good. I appreciate it. And you actually preempted my second line of questioning about online learning in this space for nontraditional students. So I appreciate your future seeing. Thanks so much, guys. thanks the gentleman representative Rigby thank you chairman the community colleges are requesting ten million dollars in new funding for first responder training can you give us some specific details about why you need this funding and and what it would fund certainly so the community
colleges that offer first responder training all of them do that at a loss we do it as a community service because our communities need first responders and they need them to be current and relevant in the field. Again, health and safety being that top priority and serving our community needs. However, these are very expensive programs, in particular if you look at fire and you have active burns and burn buildings, the maintenance on the equipment alone is very high. So this funding would help to offset the colleges supplementing those training programs and so that we can continue to expand and be able to meet the community needs for trained first responders.
It was in your request to note that the funding for this training was discontinued decades ago, and all community colleges offering these training programs do so at a loss, as you had just mentioned. And Representative Mastella shared with me some information about BC3, which I thought was rather impressive being a first responder myself. Thirty-five of 67 counties are served. You're working with firefighters. You also offered 110 Pennsylvania State Fire Academy accredited programs, over 300 customized. So it's very important. And we know as we sit here as a legislator and deal with the decline in first responders, is the million enough to get you going to where we need to be I guess having nothing this is certainly a push in the right direction correct Absolutely It would be very very helpful Just to put an example to
what the community colleges do, we are a regional training center at BC3 for firefighters, and as you mentioned, serve 35 out of the 67 counties. And I'll share with you, you know, every year we have a loss on our public safety program about $500,000. But it is so critical to our mission. It's not something that we want to stop doing. I mean, we are all looking at all the different areas of our institutions and where we can be more efficient and more resourceful. But this is such a service to our community, and we want to be able to continue to do it, to do it well, and also to do it at a reasonable cost for those that we are serving. So that money would be tremendously helpful to BC3
and many other institutions across the state. I know in my district, we were fortunate to be able to move our police academy into the community college now. So the students going through there are also coming out with a degree. So I think it's a great program, and I fully support it. Thank you.
Thank you. Thank the gentleman. Representative Curry.
Thank you, Chairman. Hello, everyone. I have a couple of questions. But first, I just want to say how excited we are that the Delaware County Community College has its new workforce campus in the southeast campus, which borders my district and Representative Boyd were over the moon that they're close to us now instead of our students having to travel all the way out several miles, especially for those who don't have as much access to transportation. So really excited about that. One of the things that I wanted to kind of ask around the partnerships with the community colleges and, you know, the impasse is when our students leave community colleges right usually typically they're not in housing situations that are on campus but what we're finding in our universities and we've had these conversations before are students that are experiencing food insecurity food insecurities and clothing insecurities and all the insecurities that you could think about those who have children who are trying to navigate their education and child care what are the what's the community college link to then going into the transfer of a full-time university what does that look like with those programs
I'll jump in and just speak about a few opportunities so your question resonates very well with me as the community college of philadelphia we have about 75 percent of our students who have some type of insecurity food insecurity housing insecurity and that's typical for us additionally 25 percent of our students are student parents so part of what we do what's the percentage i'm sorry about 25 percent of our students are student parents as well and we have instituted a lot of supports for that but particularly as your question relates to how do we support students once they transfer. We are working very closely with several four-year institutions. Our top transfer institution is Temple. Part of that partnership is thinking about how to provide the wraparound support services in addition to basic needs supports that we're able to provide through our Octavius Cattle Scholarship to students once they transfer to the four-year. So we've had very targeted conversations there around that. And a great example of a partnership that we have with the PASHE institution is our new Cheney at CCP program which we just launched That will allow us to provide some of the additional scholarship last dollar scholarship supports as well as holistic wraparound student supports and basic needs for students that would be transferring to Cheney University, but they're taking courses on our campus, so that eliminates the transportation issue. But it was really modeled after how do we continue to support our students who may need those same types of supports once they get to the four-year. So we're excited about that launching of that program. So, yeah, Megan and I are looking at each other because we have a great program. Obviously, being in the same county, we have a great relationship. We just recently went through a training with ASCU, an 18-month training on how to smooth the translation of moving from a community college to a four-year institution. We also were partnered with CCBC in that activity. We have wraparound services. We just received a great $60,000 grant for our food bank. We have a kind closet. But one of the things that we learned from listening to our students was we do a great job of making sure that their credits transfer. 99% of the credits that come from community college at Slippery Rock are directly applied to their transcripts, so there's no delay in that kind of a thing. But what we found is we listened to one of a great student, and he said to us, I love Slippery Rock, I love CCBC, but I haven't found my weekend friends. And so that really hit the both of us, and we said, what are we going to do differently? So our intention is now not just around the mechanics of making sure that there are no barriers to transferring from any community college to Slippery Rock, but in particular Butler Community College. And Butler Community College is taking on some very new initiatives, bringing buses of students to social activities like football games, like basketball games, like our Rock the Weekend events, so that those students start to develop friendships at Slippery Rock so when they get there, they're hitting the ground running, not just inside the classroom but outside the classroom. So we're really excited about that.
Yeah, I really appreciate that. That just made me feel really happy. Yeah, it's great. You know, just having our students feel comfortable that they're going from community college to another university and having those wraparound services are critically important. Thank you for your time. Thank you, Chair.
Thank the gentlelady, Representative Flood.
Thank you, Chairman. Welcome. Thank you for being here this afternoon. Last year, we discussed demographics and the decline in traditional age high school graduates across the Commonwealth. You all indicated you were fighting the decline in traditional age students by trying to attract more non-traditional age students. How are those efforts working, and what does enrollment look like, those trends look like, between those two groups, traditional and non-traditional age? Thank you.
We've made a good deal of progress. At some point, I read an article about a company that specializes in this area that had worked in New Jersey and had been very successful at attracting thousands and thousands of nontraditional students back to New Jersey public universities. We engaged with that company, and they have contracts with about half of our universities now, and they specialize in students who are called stopouts. They took some credits with us, with one of our schools, never finished their degree, went and got a job, started their lives, and perhaps they get to a point at which they think, oh, I really could benefit from some more education. So we know who these people are. They've taken courses with us, so we're sharing that information with the company. They're engaging people, identifying them, determining if they're interested in coming back, and then facilitating the process for them to come back. We started it this year. They told us that there's a ramp-up on efforts like this. It's about an 18-month process to really start to build some numbers. But we are working very aggressively, and all of the institutions, whether they have engaged with the company or not, are responsible for increasing their nontraditional enrollments and trying to increase the overall enrollments because it is a sizable extra market in the Commonwealth. And there are challenges around it because we can't just treat them as if they're 18-year-olds coming to live in a residence hall. They're in a very different place in their lives, and we need to recognize that. We need to be prepared to accept them where they are, give them the support that they need, make sure that the classes are available when they need them, online classes, evening classes, weekend classes. All these kinds of factors are being taken into account. So that is a work in progress. Well, I think about those people who are into their career and decide this is not for me.
I want to make a career change. And how do you grab those people? Or how do you market it so they feel they're welcome to come back and, hey, there's opportunities for me. And you can do this because I know you have a family now, but now we have online classes. How do you market that to make sure people know there are other options and they don't have to stay in a dead-ed career? or they're struggling to find a job, they know that they can take a different direction. So how are you reaching the people?
I think that we've created what we're calling the third arm of our academic enterprise. So we have undergraduate programs, we have graduate programs, and then we have certificates, micro-credentials, professional development, and stackables. And the goal here is threefold. New programs, new partnerships, and new approaches. We have to be partnering with industries so that people actually know what is available to them and how they can access it. It has to be delivered in a way that makes sense to them at times that makes sense to them. You know, you made a really, really good point about the demographic cliff. But what we haven't heard is that people will stop learning. And we're quite the contrary. People's jobs will not be more static. In fact, they will be much more fluid in the future. And so we have to be nimble. We have to be reactive to the market. And being in the community with our industry partners is one way that we're really working to make sure that those things are both available to them and that they're aware of them.
Well, and I'm glad that you said that because I work closely with Northampton Community College. Shout out to Dr. Dave Ruth. But that's a conversation that we have all the time about reaching out into the communities, partnering with the different industries and jobs or businesses to be able to continue training for people and let them know what's available to them. And they do a great job in connecting with workers and helping to train them in real time, which actually leads me into another question in that the community colleges are requesting $15 million in additional funding for non workforce development Could you provide some details on how you would use this funding and what kind of programs it would support Because really they play the community colleges as well as our other colleges play a vital part in being partners in our community but all of the training is important. So could you please provide some information on that?
Certainly. So we have formed a technology and trades consortium that we will replicate across the state as the workforce needs arise. and so specifically around the 15 million it is called pa works and we are looking to have micro credentials so i'll just say they're already in place so this is funding to expand programs we have over 63 years with the formation of hack as our first community college celebrating their their 63rd year. These two institutions are celebrating their 60th anniversary. And so within those 63 years, we've been in this business. We've been in workforce development that entire time. So it would be a pre-apprenticeship academy, micro-credential academy, and a career in technology academy. And I can certainly provide more details on that. But this is just to amplify those efforts across the state for all 15 community colleges. Well, I really do appreciate
your work and the partnerships in the community are really vital, especially at a time when inflation is high and affordability is tough. So thank you so much.
Thank the gentle lady, Representative Malagari.
Thank you, Mr. Chairman, and thank you all for being with us today. Really appreciate your work and to your staff as well in preparing for today. So I'm in Montgomery County. I have a district very close to Montgomery County Community College, not so far away. And I wanted to highlight a couple of things that have been happening in our region in the very recent past actually. So we've seen two major announcements from employers that have been major pharmaceutical companies, one being Eli Lilly and another one Johnson & Johnson, J&J. And the governor has also committed funds to creating a workforce pathway. how central are community colleges to expanding biotech and life sciences workforce pathways and how can the legislature support that work
thank you for that question and for your appreciation of that industry so yes those are examples of very successful recent endeavors by the state to attract the expansion of pharmaceutical companies. And so primarily Lehigh and Montgomery County Community College are involved in those efforts just because those two companies, J&J and Eli Lilly, are in their service areas. So they were called upon at the very beginning when the state started having conversations with them about what community colleges could provide in workforce training. And so the community colleges were part of the team that helped those companies decide Pennsylvania was the right fit for them. And so they are currently developing curriculum and programs that specifically meet the needs of those two companies. And the great thing about the community colleges is that if those institutions would need some assistance, the other colleges stand ready and able to also develop programs to meet those workforce needs and to help recruit and retain students So we would ask that the legislature look at our request for workforce funding because that ties directly into our ability to be able to react to those needs and help Pennsylvanians get these high life jobs
I appreciate that. I was going to ask if you could just expand a little bit further on how the community colleges are meeting those needs and the in-demand and the high-need fields as well.
So in particular, Lehigh Carbon is developing programs specifically for Eli Lilly in biochem, biomedical fields. So there's also space for our universities in that as well. So that will develop a career pathway. And Montgomery also already has some of those programs, so they will be tailoring them specifically for J&J's needs. But that's the case no matter what. We also have AWS coming in on both the East and the Middle and the West. And so we've been working with them for about a year to develop programs to specifically meet the workforce needs that they have.
I appreciate that community colleges have been very nimble within their educational offerings and to allow for students to really do be able to pick a career that they want to work in, but also the community college has been really great in being nimble and able to reflect the needs of the workforce in the immediate area or the surrounding area of which they serve. And that's a really important aspect to community colleges. I want to flip over to the PASHE schools real quick. So can you describe also similarly what you're doing to try and have the career and the educational offerings in order to be in demand for students that are looking for in-demand fields and what's happening in the current workforce and how you're preparing your student body for that?
Absolutely. Thank you. Well, we're very focused on making sure that we're preparing graduates who are meeting the needs that we're seeing in the Commonwealth. And if you look at the students we're graduating, this past year over 13,000 students graduated in business, the health sciences, nursing, other health programs, education, social work, psychology, engineering, all the major areas that the Commonwealth needs new employees in. We're very focused on doing that. And if I could flip over to my colleague to talk about some of the new programs at Slippery Rock that have been added that are showing significant enrollment growth.
Sure. To your point about being nimble and moving quickly, we are trying to move at the pace of industry rather than at the pace of the historic higher ed. So we added three new programs last year. We added construction management. We added electrical engineering, which filled out our entire engineering suite. And then we added another pathway for nursing. When we look at those three programs alone, the applications are almost 400 in just those programs alone. Had we not added those, and we're up in both deposits and all of those kinds of things, but had we not added those and added them quickly, we actually would be down in deposits in more traditional programs. So to your point we have to be nimble we have to be quick and we have to make sure that we are offering the programs a contemporary array for workforce development Thank you.
I appreciate that. Thank you for your commitment to the Commonwealth and making sure that we're training our future workforce. And he's about to throw a flag on me. Thank you, Mr. Chairman.
Thank you, gentlemen. Representative Krupa.
Thank you, Mr. Chair. This is the fourth budget year since the formal integration of six universities into Penn West and the Commonwealth universities. Is the integration of the universities still an ongoing process, or should we consider it complete?
Well, thank you. It's probably always going to be an ongoing process. Higher ed at this point, across the board, is at a major inflection point. We have so many different things happening right now within higher education. We've talked already a little bit about demographics. We've talked about the shift to online education. We're seeing that a greater percentage of high school graduates are choosing not to go to college at all. So there's a lot going on. What we can say at this point, we have been successful at ensuring that we are continuing to offer program opportunities for students in these very rural areas of the Commonwealth as a result of combining the schools. The work continues in terms of making sure that we're streamlining. We've continued to face challenges in terms of enrollments as we've gone forward. The schools have done a great job realigning their administrations to be more efficient. We're looking at the program arrays, making sure that the things that we're offering are meeting the needs of the Commonwealth and focused on the demand that we're seeing from the students. So we're seeing a lot of success as a result of the integrations. but I would not say that it's complete and we're operating just business as usual. We're continuing to work on improving things, identifying new opportunities to make improvements, and continuing to move forward.
So I'm from one of those rural areas. I represent the 51st House District. It's southern Fayette County. And unfortunately, it looks like our Fayette Penn State branch campus will be completely closed, or at least it's trending that way. So maybe you'll see an influx in your students as a result of that. But specifically to the integration plan laid out, there were specific milestones and key financial projections. Have the universities met those milestones, and are the financial projections still accurate?
So if you look at the board-approved plan, on the savings side, it was a conservative estimate. we looked solely at non-faculty personnel savings they've actually exceeded the savings from the time of board approval till now because they've been making continuous adjustments as the chancellor mentioned you know enrollment has declined and so they've been making those adjustments from a milestone perspective this would be in accordance with the board approved plan the last year of that plan. The enrollment side, if you go back to those projections, was off, and so that's why their expenditure adjustments have been greater than what was originally projected.
There were concerns with a structural deficit at Penn West. What's been done to tackle this problem, and is it improving? Do you have a time frame on when it will be eliminated?
For Penn West, from a debt perspective, thank you. to the general assembly for the funds for defeasement. So we were able to defease about $65 million of their system-issued bonds, which helped address a piece of that structural deficit. That took down their annual debt service by about $8 million. It was around $30 million. They had the largest debt going into the integrations. So I think they are continuing to address it. Penn West in the plans that we've presented or that we receive have about a two-year plan to address that structural deficit, and Commonwealth is working through theirs as well.
Have there been any unexpected issues or challenges that you guys have seen through the integrations?
Yes. Yeah, this was uncharted territory to a great extent. we made assumptions. We made assumptions around how much we thought we could save in terms of administrative overhead. We're going through a careful analysis of that now. And unfortunately, I think some of the projections were overestimates of what the potential savings were. So we're making adjustments to that. But we're learning as we go and we're adjusting to the new information as we get it. Right now, we're working on the allocation formula that we utilize to distribute the money that we receive in state appropriation. And in the last round of that appropriation formula, we had built in assumptions related to the potential savings. And so we're taking a hard look at how that worked out and whether we need to make some adjustments in terms of where the money goes based on what the opportunities are for savings going forward.
Looks like I'm out of time. Thank you so much for being here.
Thanks, gentlelady. Representative Fleming.
Good afternoon, everyone. I want to thank you all for what you do. As the chairman alluded to earlier, I'm a proud Millersville graduate, but I did attend Harrisburg Area Community College for one year before going on to Millersville. So I was a transfer student, and it worked out well and very fortunate for the path that was provided to me by virtue of being able to afford community college and then afford my education at Millersville University. We talked to the state-related about this a little bit earlier today, and I want to get your thoughts both on the community college side and on the PASHE side about deferred maintenance and how, you know, deferred maintenance for, you know, building upgrades and things like that, how that factors in. Do you, I guess I'll start with the PASHE side first, is that sort of up to each individual university and their boards of trustees to kind of figure out what's on the priority list in terms of, you know, when buildings get built, when upgrades are made, etc.?
Yeah, those are local decisions. And unfortunately, in a world of stressful budgets, the word deferred is the action word there. Oftentimes, if we have to cut costs, then we're going to try to squeeze one more year out of that roof or another year out of that boiler or whatever. And at this point, it's really at a crisis level. across the system.
We have huge amounts of deferred maintenance. Let me defer to my colleague. She can speak specifically about the circumstances at her university because it typical of the situation across the system So Slippery Rock right now has about million of deferred maintenance that has not been met We have about 35% of our ENG buildings are over 50 years old. So, yes, last year we had to invest several million dollars worth of heat pumps and those kinds of things because we had situations where several of them are breaking all at once. It's not the same as having your own furnace break when I've got hundreds, thousands of students without heat. That has to be addressed right then, and that becomes a priority. I do want to put a couple of other things on people's radars. Number one, it's not just a roof or something like that. We are actually, by kicking the can down the road for deferred maintenance, also limiting the educational experience of our students. Some of the facilities that we have no longer are up to date, much less cutting edge. And that's not part of our mission. We are supposed to be a low-cost option, but we are supposed to be providing an excellent education. The other thing I would say is that cyber is the number one risk for any higher education institution, whether that be a PASI institution, a state-related, or a community college. So when we talk about deferred maintenance for infrastructure, we're also putting ourselves at great risk for cyber attacks.
Can I just add real quickly, we only have three sources of funding for deferred maintenance. We get key 93 funds. We have the university operating. And then we have started to begin to use some of the DGS capital funding, which is $70 million a year for all 10 universities, to do renovations, new construction, as well as now some of that larger deferred maintenance that's sitting on campuses. So the funding is limited for this.
Situations very similar at community colleges, outdated infrastructure, trying to keep pace with that as it comes up each year. So there are individual deferred maintenance plans at each of the 15 community colleges that address their greatest needs. And for the community colleges, they're responsible for finding the other 50%. The state does not fully fund any capital requests that come in to us. That's in code. And so that's also been a limiting factor as well. So even if you can apply and be fortunate enough to get any type of funds from the state, we have to find a local match. That's also been limiting, but perhaps the president's good context.
We have several tiers of deferred maintenance projects that we have at Community College of Philadelphia. As we mentioned, celebrating 60 years. Some of our buildings are 60 years old. And so we were fortunate to be able to participate and have the advantage of those fundings from the state in terms of deferred maintenance project for this year. So we're excited about that $20 million project. But that is the tip of the iceberg. And as Dr. Stanley mentioned, we also have to find matches for those anytime we want to do that type of service to our building. So it is tight.
Yeah I love to see some sort of fund for K education for maintenance and maybe we could consider higher ed as well So thank you Thank you Mr Chairman Thank you gentlemen Representative Olsamer Thank you Mr Chairman Thank you all for being here today A proud graduate of East Stroudsburg University, so get right to my question. Obviously, the better prepared students are when they enter your colleges and universities, the more effective you can be when educating them. and the quicker they move through your systems to completion. But I'm sure all of you must provide some form of remedial education.
Is the need for remedial education at your colleges and universities increasing or decreasing? And I'll start with the community colleges first. I so I can go ahead and kick things off I don't have the exact number with me right now but I'd be happy to follow up with you on that from what I understand it is has been increasing slightly and so we are you know continually taking stock of our students and their preparedness when they come in always trying to make sure that we're testing in the appropriate ways for the levels that they're coming in at and then, you know, modifying our courses accordingly.
So I'll speak to Community College of Philadelphia. Additionally, our numbers are increasing. However, we have implemented what we call math pathways and accelerated learning pathways, which is an opportunity to pair courses, developmental courses, with credit courses and do a just-in-time remediation type of pedagogy, which really minimizes the time. So I think at the end of the day, we're talking about getting students through more quickly. We're talking about how do we do that, and it may or may not be that we have a significant number of students that are placing in developmental, particularly, as you know, the Community College of Philadelphia is a minority-serving institution. Disproportionately, students of color tend to place in developmental education, so we are an open-access institution. We have tons of students that need that, but we're working through how do we make sure that they're not wasting time and they're still moving through quickly even if they come with a few skills that they're lacking in math and English, for example. The additional piece of that is working with our school district to make sure that we're aligning our curriculum so that when they get to us, they have what they need. So we're looking at trying to hit it at multiple ways.
With PASHE, historically, when we speak about remedial education, typically that means for us they don't get credit for it. we realized that that was probably a bad idea because many students were coming in and in their first semester, instead of taking a full load of courses, they may have taken a remedial English class and a remedial math class and ended up with only six credits. So even before they finish their first year, they're behind the eight ball in terms of the pace for graduation. So we tended to move these kinds of things into the summer. And what we focus on, we are access institutions. We know that we bring in many students who are coming with challenges, whether they be academic challenges, financial challenges, study skills. There are a whole array of challenges that put them at risk in terms of being successful. And all of our institutions are now focusing a lot of effort, a lot of personnel in roles that are called different things, mentors, concierge, support, really focused on making sure that we're meeting the students where they are and helping them to be prepared to meet the standards to make progress towards graduation So those summer programs if I not mistaken they go summer then January integration Do you have any idea on the success ratio of those students that start off in the summer
I don't know if you have any anecdotes, but we could look that up and get that to you. My general sense is that it's quite successful. They come in, they stay in a residence hall for a period of weeks, and they get a feel for what life is like on the college campus, which is one of, of course, the big challenging transitions for students who are coming into higher education. They're moving into an environment where they have a much greater self-responsibility compared to what they're coming from. So generally, we see it to be successful, but we can get some numbers. Yeah, our Jump Start program is exceedingly successful. So we look for students who might, for any reason, feel that they need a little bit of an extra boost at the very beginning. This would not fall into the remedial category, but it does give our students a leg up in that space. I would like to say that we have seen an increase in students that have 504 plans and those kinds of things. we have a great faculty and staff that are able to meet those students' needs. So again, as Chancellor Fiorentino said, our job is not for those students to be ready for us, but for us to be ready for them. And so we have added programs, added training, added great staff in order to support our students that come in with perhaps a different learning style or a different learning profile.
Thank you all very much. Thank you, Mr. Chairman.
Thank you, gentlemen. Representative Brennan.
Thank you, Mr. Chairman. Thank you all for being here today. I'm a former community college professor, one of some of the best days of my last life. I know the transformative work that you all do at our community colleges and our PASHE schools. It is wonderful to see kids coming through and doing great things. So I'm going to come back to a topic that Representative Rigby had asked about, the $10 million in first responder training funding. You know, obviously many of our local municipalities are facing a cliff trying to find volunteers. It could be a huge expense for our municipalities. I mean, I'm wondering what are, if you could maybe elaborate a little further on some of the specific benefits you'd expect, some of the programs that might be being held back because we're losing, we don't have the funding allocated. And what are those benefits that this funding might actually go to, more of a tangible, what are we holding back on and what could be out there to be using that fund for?
Sure, I'd be happy to start. So they're very expensive programs to run, as you might know, because of the equipment and even uniforms and things like that that have to be always up to date, and safety is a priority for us. So we have a burn building at BC3, for example. Anytime we need to do maintenance on that building it is upwards of 80 to 100 thousand dollars and that's just one example We also have a rail car and other fire simulations a flashover on campus and those require consistent maintenance to be safe In terms of the training we do our best to provide heavily subsidized and in some case free training to the firefighters particularly within our county and We want to continue to be able to do that and that is something that increasingly is a risk that we are facing when we're facing such a loss every year, about a half a million dollar loss, is that we are no longer going to be able to make that training either affordable or affordable free in some cases. And especially, as you mentioned, for the smaller municipalities, I mean, they just simply don't have that kind of money. Many of them volunteered. So for BC3, equipment, but also making sure that we can train people in an affordable manner would
be where those additional funds would be very helpful. Yeah. And I know, oh, go ahead.
Is another example, so some of the community colleges are working with their communities to try to bring in junior firefighters and try to encourage young people to be volunteer firefighters to fill that gap in the rural communities, that all will still need to be at low cost or no cost in order to entice them, as well as to supply equipment and get them trained. So some of that would fall on the local firehouses, and some of that falls on the community colleges, and that has been very limited because of the inability to further subsidize. So those would be expanded.
And I know it's not getting any easier for our first responders and particularly our volunteers. And I've worked closely with Bucks County Community College. Representative Marcel and I have a bill that addresses some of these funding issues. So I do hope we can try and help you there. And I'd also like to follow up on a question from Representative Kincaid who asked about how some of this 5% increase for the PASHE schools might be used and what are the benefits. I just kind of want to look at another side of that. Is there schools or regions that are most in need or that are most in need of that funding or that would be hurt more by a failure to appropriate?
We have 10 institutions, 14 campuses, all very different. And yes, the need is not evenly distributed across the campuses. We have an allocation formula that reflects a lot of those factors. We recognize, for example, that there are certain benefits associated with scale. If we have a larger campus, the average costs tend to be lower. we have some schools that have greater these sorts of remedial issues that we talked about that come into play. Some very small campuses they have diseconomies of scale. They have certain overhead that they have to cover regardless of how many students they have and so we take into account in the funding the fact that everybody has to have an administration. Now the consolidations that we talked about earlier was an attempt to aggregate some schools and eliminate some of that overhead so we could reduce some of those types of costs. But we do whatever we end up receiving, we run it through this formula that's very carefully crafted to take into account the different needs and the different academic programs. Some programs are more expensive than others and to some extent we can take that into account. I don't think we do it perfectly, and I think President Reilly would agree with me when I say that. We should get all the money. But we do our best to understand what the differences are and distribute the money appropriately.
Thanks for your time.
Thank you, gentlemen, Representative Reichert.
Thank you, Mr. Chairman. Chancellor, President, I just, you know, real quick wanted to just highlight our comments from a lot of our members about workforce development and, you know, the need to ensure that when our students graduate that they are prepared to enter directly into these businesses And Chancellor if I may I want to brag a little bit about Shippensburg which is not you know in my district but it supports a lot of folks in southern Franklin County And I know that they have you know work learning They are partnering with employers in our area to shape curriculum so that those students can find jobs directly after. They're expanding internships and just truly, you know, preparing students to enter the workforce. Is that something that SHIP and the trustees are doing down there, or is that something that we're doing PASHE-wide?
Well, every campus is a little different. I visited the program that you're talking about at Shippensburg, and I was in a lab with students who were doing incredible work, and there were three or four employers in the room with them, and they were learning in that lab, and then they were going and working with the businesses. The businesses were relying on those students to be skilled workers. Just an incredible program. We have examples of that at many other institutions, Slippery Rock included, and once again I'll defer to my colleague who can give you some more specific detail there, but it's a common thing across the system at this point.
Good.
Do you want me to address this?
Please, yes.
Oh, I thought you were going to ask another question. Great. First of all, I do have to apologize to my great colleagues because I know I can't take all of the money, so I just want to be on the record on that. In all seriousness, when we look at experiential learning opportunities, I think that across the system. People are doing amazing things. One of the things that we would like to highlight, and I think that this happens at Slippery Rock as well as across all of the PESHE schools, is we have a lot of students, as we've talked about, who are Pell eligible, first generation, who are, this is an access institution. We don't want our students to have to make a choice between an experiential learning activity and a job. So we don't want practicas, internships, those kinds of things to be only activities of privilege. We want to make sure that we can break down a barrier that disallows people who don't have funds or have to work to not be able to access those kinds of activities. So we're very excited about what we're doing, and we're continually looking for ways to fund those kinds of activities, if that makes sense.
Absolutely. No, and I guess that sort of leads into my final question is how can we better partner on these things? And, you know, it sounds like there's money requests, you know.
Well, you know, I think thinking about how do we help incent different corporations and industries to provide those kinds of internships, So something maybe similar to like an EITC, you know, kind of a credit where certainly we don't want to take anything away from our K-12 partners because what they're doing is amazing. But kind of a companion program that would incent corporations to provide funding for internships and practica would be amazing.
That would be an extraordinarily novel approach.
And I certainly appreciate that, and I look forward to partnering with all of you on ways that we can continue to do that. So thank you all for your time today.
Thank you.
Thanks, gentlemen. Representative Brown. Thank you, Chairman. And I am thrilled to see two of my schools here. So President Koval and Dr. Riley, thank you for all that you do for Lawrence County. These two women, as you've probably been able to tell, have done amazing things at these schools. So, at a previous hearing, we've discussed university and affiliate housing debt. I sorry We actually well we did discuss that but we also discussed underutilization of system facilities and that many campuses have housing or classrooms that are underutilized and the need to find creative ways to repurpose these so that they benefit all those involved. And typically this involves partnerships that take time in the community. But a recent article for you, Dr. Riley, quoted Slippery Rock as being one of the most extensive or having one of the most extensive academic overall halls in modern history. So can you talk to how the partnerships that you've developed have helped you do this in your community?
Sure, and thank you for that. We are not one of the organizations that has excess space or excess housing, so I do want to be very, very clear about that. We're actually a little bit on the other side where we've got a good percentage of our first-year students in triple rooms rather than double rooms. But I think that our strategic plan was that we would be a first-choice organization for partnerships, And that was what we were trying to do. And so we have made an intentional goal for us to go out and seek partnerships, to listen to our industry partners, to modify our academic array. So we have a great provost and we have great faculty. And what they did was listen to our industry partners and change how our departments were organized. What this allowed us to do and what it allowed our faculty to do was teach more in an interdisciplinary way, which allowed for more effectiveness, more nimbleness, and more cost savings. And that transformation has really made a difference for us. And we've been exceedingly fortunate. We've been essentially up in a down market, and our retention numbers are, well, we set a PASI record for retention this year. So we're very excited about that, and we're very proud of you as well.
May I just jump in a second to address the other issue you raised about empty buildings? We are actively pursuing opportunities to try to repurpose some of these buildings. There are conversations going on that are at various stages because we recognize that these are buildings that are sitting there costing us money. And if we can repurpose them to the benefit of the community, we really want to do that. Also, in many cases, we've heard how old the community colleges are. Our schools are even older, and so we have some buildings that are even more than 60 years old and really are past their useful lives. And as we have had downsizing exercises on some of the campuses, we've moved out of these buildings, and we're looking for opportunities to be able to demolish them because they're sitting there costing us money. So in some cases, if a building is past its useful life, the best strategy is not to repurpose it. It's to just knock it down and eliminate all the costs associated with it. And we do allocate some of our capital funds to demolition, and we've had conversations about trying to identify additional funds that we could be able to utilize for demolition because that would benefit us because it removes those carrying costs that are in our budgets that aren really doing anything productive And we so appreciate that I can tell you that after sitting in these hearings for a couple weeks now and listening to all the inefficiencies and ineffectiveness of some of our departments
it's very, very rewarding to hear the things that you're doing on the other side of that. So very quickly, President Koval, when you came to Lawrence County with, or you moved to your new location. The newspaper was quoted as saying you were a, or you developed a true integration into Lawrence County. So can you talk to us about some of the examples of the partnerships that have worked for you in doing that?
Yeah, absolutely. So BC3 has been in Lawrence County for 26, 27 years, and we recently moved locations. We had a space that was just too big for us. and so we decided to right size and move into a new location that's located in Shenango Township and that's kind of in the middle of a former strip mall but has really been repurposed and even in making that move and we've had the opportunity to integrate further into that community we are right next door to Shenango High School so one of the things that we did I mentioned earlier how collaboration is so important to us we did not build a chemistry lab because Shenango high school has a chemistry lab so now our students will go over there and take their labs whenever it's time for them to do so we also collaborated with the lawrence county learning center and they are now sharing space with us so very similar missions they were in need of some space we had some extra space and that is only to the benefit of our students again we appreciate
all you're doing in our community and how creative you've been with your budgets thank the gentle
lady chairman cutler thank you mr chairman thank you very much for being here this afternoon I appreciate it appreciate taking time out of your very busy schedules I also want to thank all of you conceptually as both a father and a tuition payer our son very similar to representative Fleming he started a hack dual enrolled in high school and now he's going to graduate from Millersville this May. So I personally appreciate the integration that I've seen between the community colleges and the PASI system. But the question I have is specifically about the Grow PA program. I know it's new. We heard some growing pains this morning, particularly related to some of the coding, because some programs qualify at some schools because they're coded a certain way, and then they may not qualify at other schools. So as we're looking to use this tool for building the workforce here in Pennsylvania for those high in-demand occupations, that program also provides in-state tuition discounts to out-of-state students who are willing to commit to live and work in PA in that occupation for a period of time. From your view, are there any other changes we should be contemplating as a general assembly in order to make the program more efficient or remove some of the bureaucracies such as the coding issue that came up earlier today?
I think the program is great. Obviously, we've had more traction in-state. Remember, we're asking people to come to school here and commit to staying here after. That's a bigger decision for somebody from out-of-state than it is for somebody who's here. One of the things that we have experienced, that President Riley mentioned a moment ago that Slippery Rock has no excess dormitory space on its campus. Several other of our universities are in a similar position. They just don't have any more room and Since students coming from out of state are typically not going to be commuter students, they're going to need housing, and these schools find themselves in a difficult position of having to actually back away from commitments to in-state students to make room for out-of-state students, and we don't believe that that's what the General Assembly intended for us to be doing. So there are certainly schools where we have the housing, we have the opportunities, we're trying to develop better processes. In fact, I met with Jim Steele from FIA to talk about how we might piggyback our recruitment across state lines. FIA works in Ohio and Maryland and West Virginia, for example, and they're taking our materials with them when they go and meet with prospective students in those areas. It's taking longer to ramp up the out-of-state program, but we are getting materials out there. we're communicating. Our schools do recruit aggressively in the states, the ring states around the Commonwealth and hopefully we're going to see more traction as we move forward. But I think the program is very generous, provides a great opportunity. Again, not surprising that we're having more success with the in-state students. 80% of our graduates do tend to stay in the Commonwealth when they graduate and take their first job here. But hopefully we're going to see improvement in the
out-of-state attractiveness too going forward. Thank you. Additionally, with that program, are there any concerns with maintaining that workload, if you will, of students as they progress through the four years, given some of the funding issues that some of my colleagues brought up earlier. In other words, what efforts can be made to ensure that once someone is enrolled in a program that they continue to be so and, you know, also stay in the correct career path to still qualify versus changing majors, which I know happens from time to time with students.
How are your institutions handling that? Well, let me make a quick comment and then hand it to to President Riley, all of our schools are committing significant resources to support financial aid beyond the traditional financial aid sources that we have. And maybe you could give a couple examples.
Okay. Yeah. I mean, I think first of all, I will echo Chancellor Fiorentino's comments about the program itself. So at Slippery Rock, we have 381 students who are currently in the Grow PA program at at the tune of about $1.8 million. So it's a great program and we continue to try to get more students. We got about 5 students we looked at right now that would be eligible for that Our dedication to those high need workforce development programs is why we have so many of those students that would be available to us. For us, you know, I think there are, we try to stack financial aid. And so we have a great staff that looks at each individual student and works with their family to say, oh, are you eligible for this? Are you eligible for this? Are you eligible for this? Are you eligible for this? We fill in a lot of that aid with our own institutional aid. We spend about $7 million on just out of our ENG budget in order to bridge some of those gaps. And then we're actively working to get philanthropy more involved. Although we are public institutions, some of what we're learning is that we need to act a little bit more like the privates and up our philanthropy gain. Slippery Rock in particular is working very very hard on that. In the past we brought in about two million dollars a year. We've got a big commitment to scholarships and so we've brought in about twenty seven million dollars over the past two and a half years. So our commitment to funding our students to making sure that they have again the highest quality education at the lowest possible cost. It's not only accessing the funds that you provide, federal dollars,
as well as our own dollars and philanthropic dollars. I appreciate that, and I know we're out of time. I'll simply close with, as you're looking at any issues that arise with this program going forward, please know that my door is always open as the education chair, and I'm happy to work with you to find any kind of resolution for that. Thank you. Thank you. Thanks, gentlemen.
Chairman Struzzi.
Thank you, Chairman Harris. Thank you, everyone, for staying with us this afternoon. Having studied myself personally at the community college level, at the PASHE level, and at the state-related level, I can tell you from my experience there isn't a difference in the quality of the education, but there's definitely a difference in the cost. So thank you for providing what is truly the definition of affordable, quality education for Pennsylvania students. A very quick, I think I'd be remiss if I didn't give props to Indiana University of Pennsylvania, IUP, right, in my district, and the first ever soon-to-be College of Osteopathic Medicine within the state system, making tremendous strides to address our rural health care needs and provide that additional option for medical students. and I think it's just gonna be outstanding so I applaud that effort I know you're well aware of a Chancellor so we want to see that continue but but very quickly you know we had the state related with us this morning talking about their increasing budgetary requests and I know that you have similar requests in mind I know the governor has flatlined pretty much all of our higher education entities Have your enrollments overall, understanding there are geographical discrepancies, have your enrollments increased?
We've had a sustained period of decline, and in the past two years, we've seen them level off and then tick up a little bit.
Do you anticipate them increasing?
It will be very interesting for us to see what happens in the coming year.
It will be nice to see it tick up again.
We are now facing another anticipated decline in the high school graduating population. That's expected to start this year and then continue in through the next decade. As I commented earlier, we do focus a lot of effort now on attracting the nontraditional type population. We're very focused on retaining students. We haven't really talked about retention here today, but retaining a student is very important because a student who doesn't retain is not going to graduate. And if they retain, they continue to be paying customers, and that continues to generate revenue and enrollments for us. So all these kinds of things remain very important. What I'm hearing from the presidents is that indications at this point are that we're seeing a modest uptick in applications and commitments from prospective students going forward. But at this point in the year, it's too soon to tell where we're going to land.
Okay, and at the community college level?
So this year we were up across the 15, 4%. That does vary by institution, but overall, just like PASHE, we leveled off, and now we're seeing a slight increase, and it is too early for the community colleges to predict what next year will look like.
Okay. Well, I appreciate the honesty related to enrollments. I think, again, it speaks to the need to right-size higher education overall and make sure that we're meeting the needs of our young people across the Commonwealth in all geographical areas. So thank you.
Thank you.
Thank you, gentlemen.
Everybody looking at me. Do I have a question? No, I'm joking. The only question I will have is for the president of CCP. Can you talk to us about where we are in the process with the new partnership with Cheney University?
Yes, I'm very excited to be launching the Cheney at CCP program. As I mentioned earlier, it's an opportunity to have bachelor's degree pathways for our students at our campus, right? and so it eliminates the transportation issue that some of our students might have if they wanted to pursue an education at Cheney We focusing in on four pathways but we are launching and starting with business and education We want to make sure that we are contributing to the pipeline for teacher education and we know that there's a shortage of teachers in the Commonwealth, and CCP really wants to be a part of that. So we're excited that education is one of the pathways. At the Community College of Philadelphia, we have over 400 education majors, and so we're primed and ready to do that. We're excited about our partnership, and we look forward to working with Cheney and creating additional opportunities as the program grows. So we're launching in the fall.
Listen, I'm so very happy to hear about this partnership and have been involved in it. Quite honestly, I think it's a partnership that all of us should be looking at with regards to our state system schools and the community colleges that are nested in our footprint. I think it's an awesome opportunity when we talk about how we create a stronger relationship between community colleges and our state systems. Look, the bottom line is this General Assembly, this government is providing resources to both. And anything that we can do to cut costs for our students in turn makes the dollars and cents that we're providing go even further. So I welcome any more ingenuity and creativity that marries community colleges in our state system to the benefit of the end user, which are all of our students. And I thank you for what you do every single day, all of your individual campuses, to continue to educate and push forward for the Commonwealth. At the end of the day, when we have shortages in different professions and things of that nature, it's both of these organizations, our community college institutions and our state system institutions that fill the gap. So thank you for what you do every single day. And with that, that will end this hearing. We're going to take a 15-minute break, and we'll be back at 345. With the Pennsylvania State Police. Thank you. Thank you.