A 'public good' imperiled

Many educators are calling this the perfect storm: an increased demand - indeed, an increased necessity - for a college education is being met by higher tuitions due to a steady decline in state financial support and an equally relentless climb in costs. In short, the now almost-mandatory requirement

In Pennsylvania, campuses - including the local state-related campuses of Penn State University - are feeling the effects of this triple squeeze.

Although the Worthington Scranton, Hazleton and Wilkes Barre campuses do not receive direct allocations from the state, they share in Penn State University's state allocation, which has been steadily waning.

In 1970-71, state appropriations covered 62 percent of Penn State's operating expenses; tuition and fees covered 32 percent. In 2003-04, state appropriations covered 25 percent of Penn State's operating expenses; tuition and fees covered 69 percent. One should bear in mind that tuition in 1970 was also drastically lower than it is now. Thus, students are not only bearing more of the cost of tuition, the tuition costs they are bearing are significantly higher.

Below, local Penn State campus executives reveal their perspectives on the state of the storm.

Penn State Wilkes-Barre

Penn State Wilkes Barre Campus

Executive Officer: Dr. Mary Hines.

Penn State Wilkes Barre offers eight baccalaureate degrees including Administration of Justice, Business, Electrical Engineering Technology, English, Information Sciences and Technology, Letter, Arts, and Sciences, Surveying and Organizational Leadership for adult learners.

Seven associate degrees can also be earned on campus. In addition, students can begin any one of Penn State's 160 majors at the Wilkes Barre campus.

Q. Has the perfect storm hit the Wilkes Barre Campus?

Hines: Yes, but it isn't unique to our campus. It has hit most of the area colleges as well.

Q. Is the cost of tuition making higher education unaffordable to area students?

Hines: Absolutely. Many students want the value of the Penn State degree, but the cost is becoming out of the reach for many in our area. On average, a Penn State graduate makes about $10,000 more a year than a person without a Penn State degree. The degree is highly valued by employers, but there are some who can't afford to invest in their own future.

Q. Do you have any sense of how many students rising tuition has turned away?

Hines: It is hard to prove a negative, but I will tell you that about 75 percent of our students are on some form of financial aid. It is my judgment that there are a good number of individuals who haven't enrolled because of the cost. There are some students who do enroll, but then are unable to reenroll because of inadequate student aid.

Q. How do you compensate for the lack of state funding?

Hines: One of the first steps is to reengineer your organization to achieve efficiencies and reduce cost - but never at the detriment of the quality of education for the student. We also seek grants, which strengthens the institution and improves programs that support students' academic performances.

Q. How can the community help area students obtain affordable education?

Hines: Contributions from our community and friends of the campus have been and are absolutely essential to offset the tuition cost for our students. Through the annual fund, almost $100,000 has been given out in scholarship aid to students. About 30 percent of our students are adult learners who are trying to support family or make it on their own. Students are struggling to balance work, family and school - it is just another challenge in the perfect storm.

Q. How can businesses get involved to help students who need educational assistance?

Hines: Businesses can do a number of things to help college students achieve their goals. They can help finance a college degree, offer internships or mentor students. Mentoring students or offering internships are fairly inexpensive and they often provide a win situation. Any way businesses invest; they are investing in their future workforce and improving the community. Higher education and business are also forming community and economic partnerships as we build the economy of the future - an educated workforce.

Q. When you look to the future of the storm, what do you see?

Hines: I think storms eventually work their way through. The good news of the situation is that people are coming to terms with it and understanding the value of an education. The state is aware of the situation and hopefully it will start to address the fact that there is hardship for students.

Q. Why is a college education more vital today than ever?

Hines: I believe that the world has changed significantly in the last few generations. Technology, global business, instant communication - all of these things contribute to the world a college graduate must live in. College graduates can deal with technology changes. The jobs of the past are just not there. Jobs of the future will require skills and abilities that students get in their college programs.

Penn State Hazleton

Penn State Hazleton Campus

Executive Officer: Dr. John Madden

The Hazleton campus offers three baccalaureate degrees Business, Information Science Technology, Letters, Arts and Sciences - as well as eight associate degrees. Helping students make educational and career decisions, Madden says staff and faculty assist students in succeeding in their chosen educational path.

Q. When did the storm begin and how has it affected your campus?

Madden: Over the years, there has been a gradual decrease in state funding. It is not governor-, administration- or partyspecific. Unfortunately, we have come to see education as less of a public good. Take the decrease in state funding coupled with the increasing expenses, and there is a lot of pressure in education. The vast majority of our expenses are spent on personnel. The cost of labor has gone up more quickly than inflation. This is true across the board, and no one has found a good reason to take human beings out of education.

Q. Can students afford rising tuitions?

Madden: Yes, but it requires more planning and insight. The average student has about an $18,000 debt when finished, but a Penn State degree pays itself off over time.

Q. How are you working to make tuition more affordable for students?

Madden: We are working hard to increase our endowments. We are here because the local community wanted us here. Now that a such small percentage of our overall budget comes from the state, there has been a shift from public to private funding.

Q. When businesses contribute to Penn State through scholarships or endowments, what is their return on investment?

Madden: As far as a long-term return, they can't do better because the students have a solid education and general overview. It does pay off to support education. Firms need to recruit valued graduates, which has a clear economic impact on the community here and within the state. (Please see side note for details of Penn State's economic impact study.)

Q. Can you give me an example of a simple thing a business can do to help education become more affordable to students?

Madden: One of the things businesses can do is offer employee re-investment plans - tuition reimbursement. These plans build loyalty and employees are more likely to stay and grow with the firm.

Q. Why are more students seeking higher education?

Madden: What has happened over a long period of time is that a higher proportion of students are graduating from high school. We are educating a larger proportion of the population than we were 30 years ago.

Q. When you look to the future, do you see this problem growing?

Madden: As our campus of Penn State University gets more and more private with the loss of state funds, it will be less dramatic, but it will continue to be a major concern.

Penn State Worthington Scranton

Campus Executive Officer: Dr. Mary Beth Krogh-Jespersen

Penn State Worthington Scranton campus offers baccalaureate degrees in Business, Human Development and Family Studies, Information Sciences and Technology, Letters, Arts, and Sciences, Nursing and American Studies. In addition, students can complete the first two years of any one of Penn State's 160 programs at the Worthington Scranton Campus. Associate degrees in various programs are also offered. In Fall 2005, the campus will deliver a regional master's degree in education.

Q. Would you call the current state of education/state funding deficit a perfect storm?

Krogh-Jespersen: Politically, yes. I don't think the government prepared for the sheer number needing a college education. Everyone knows a college education is basic to a lifelong career. Part of what I see is some folks are not taking the personal responsibility to save for the possibility of college. People need to look at this because the government itself has many important things to fund - education is just one of the causes that we, the people, ask the government to support.

Q. Why should the government invest in higher education?

Krogh-Jespersen: When you have a college education you earn better salaries, businesses function wen, the poverty level can be moved. By investing in us and in higher education, the government should see that these are age just some of the things that higher education brings back to the community.

Q. How are you compensating for the lack of state appropriations?

Krogh-Jespersen: Seventy percent of the average student population's tuition is not paid for by them - but through a combination of federal dollars and some state dollars in the form of loans or scholarship dollars. We may have raised some scholarship dollars from people in corporations and businesses in our community, which helps alleviate financial burdens.

Q. How can the business community help generate educational support?

Krogh-Jespersen: Employers can establish a charity giftmatching plan. Businesses can match employees' gifts; and invest in charities and in our campus ... There are many ways to offer support. Companies like UGL, who gave a scholarship, can see the community grow in a positive way through their support. Companies can do something such as sponsor a college career fair. That is say, $5,000 more that can be spent elsewhere ultimately saving students money.

Q. In the midst of the perfect storm, are private institutions sometimes more affordable for students?

Krogh-Jespersen: Students need to have their data straight. If a student has serious economic needs, both institutions may give you a full scholarship. You need to look at which is the right institution for you and compare what financial aid is available versus the total costs of education. You might get $5,000 in scholarships at a public institution or $10,000 at a private, but at a public institution you pay less. It is a matter of what you are willing to pay for the education you want.

Q. Do you have hope that the storm will soon subside? If so when?

Krogh-Jespersen: I don't think the storm will ever subside. I think people will just have a better understanding of it. It won't be a storm; it will just be something you understand about life. You work with it. It will be a factor in personal planning, just like paying dentist bills. As there are more and more partnerships formed between business, education and the government, it will be less challenging.