Pennsylvania Governor Proposes Major Funding Overhaul of State Colleges

Pennsylvania Gov. Josh Shapiro Kicks Off his “GSD Tour” in Chester County, Jan. 5, 2024. Commonwealth Media Services

It’s not the free college President Joe Biden has floated, but at $1,000 a semester, Pennsylvania Gov. Josh Shapiro’s proposed overhaul of higher education in the state comes pretty close.

Mr. Shapiro released a key part of his 2024–2025 spending agenda this week in advance of his Feb. 6 budget address, and it includes a fundamental shift in how the state would fund state universities and community colleges.

“Pennsylvania families making up to $70,000 would pay no more than $1,000 in tuition and fees per semester at state-owned universities and community colleges,” Mr. Shapiro said on social media.

Pennsylvania has a network of 10 state-owned universities managed through a state agency, the Pennsylvania State System of Higher Education (PASSHE). It also has 15 community colleges, overseen by the state Department of Education and counties.

‘Significant Investment’

Annual tuition at PASSHE universities has been frozen for six years at $7,716, or $3858 a semester. Under the proposed plan, Mr. Shapiro said he would build a new system, joining PASSHE universities and local community colleges under a new governance system.

The plan sprang from the Higher Education Working Group—a group of education leaders from across Pennsylvania appointed by Mr. Shapiro to develop a series of recommendations for improving higher education.

Over the past decade, PASSHE enrollment has dropped 30 percent and community college enrollment has decreased by 37 percent, Mr. Shapiro said in a statement. But despite serving fewer students, more spending is proposed.

“Pennsylvania spends less on higher education than every other state except for New Hampshire—that means the financial burden of higher education falls on our institutions and students, who are forced to cut services, raise tuition, and take on more debt,” Mr. Shapiro said. In his budget address Mr. Shapiro will propose a “significant investment” in the new government education system, and once that system is in place, Mr. Shapiro says he plans to “make significant investments to ensure higher education is both affordable and accessible for all.”

He has not described where he will find the money.

In October, PASSHE’s board requested $623.7 million—an increase of $38.1 million (or 6.5 percent)—for the 2024–25 fiscal year to serve its 80,000 students.

Performance-Based Funding

Mr. Shapiro proposed publicly funded colleges and universities earn their money through a funding formula focused on outcomes. This will “incentivize colleges and universities to focus on what’s most important to the Commonwealth,” a statement from the governor’s office said, adding that a performance-based funding model has already been embraced by higher education leaders across the state.

The public funding will be rewarded for increasing enrollment, the number of first-generation college students that receive credentials, and the graduation rate. The funding formula will also incentivize institutions to recruit students to complete degrees and earn credentials in fields facing workforce shortages, such as education and nursing, and growing fields like advanced manufacturing and biotechnology.

Under Mr. Shapiro’s plan, far fewer people will be involved in deciding how public money will be spent. His statement indicated the 253-member state Legislature will be cut out of the process in some way.

“Governor Shapiro will ensure this performance-based funding formula is driven out through the Pennsylvania Department of Education for state-related universities. This will no longer require a two-thirds vote in the legislature, breaking the cycle of political gamesmanship that has held funding hostage,” Mr. Shapiro’s statement said.

Pre-Budget Media Blitz

Before the February budget address, Mr. Shapiro is working to sell his plan to the public. News of it spread quickly on Friday. He announced the plan on social media and on his government news page. Throughout the day more social media posts appeared on his pages promoting the plan with pre-recorded videos.

“Investing in our students is the only way we are going to fill the talent gap in our state,” PASSHE Chancellor Dan Greenstein said in one video. “It’s the only way we can continue to drive a strong economy and hopefully, a healthier and more civil society.”

Mr. Shapiro has been preparing for the budget address in another way; he has been traveling the state on the “GSD Tour.” That stands for Get Stuff Done on government websites, or often, Get (expletive) Done on Instagram.

Recently he visited the Greater Wyoming Valley Area YMCA to tout expansions of the Child and Dependent Care Tax Credit. The state credit is now equal to 100 percent of the federal credit, increasing the maximum state credit from $630 to $2,100. He also traveled to Litzenberger House, a senior apartment complex in Bethlehem, to talk about an increase to the Property Tax/Rent Rebate for older adults and Pennsylvanians with disabilities. They are now eligible to apply for a rebate of up to $1,000, which has increased from the maximum of $650. The program’s income limits have been increased to $45,000.

These are themes he is likely to mention in his budget address.