RAND was asked to develop and assess possible courses of action that would sustain State System universit_ies

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Piers Gilmore
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$states' policies and governance structures,.- Gath.er and '~ revie\aj ;stakeholder I : input....!.. ---.-.-_ - - Develop and assess options and implementation requirements 2$

2 RAND was asked to develop and assess possible courses of action that would sustain State System universit_ies 1 Review and analyze relevant reports 2 Review other states' policies and governance structures,.- Gath.er and '~ revie\aj ;stakeholder I : input....! _ - - Develop and assess options and implementation requirements 2

$population by county, 2015-2030 KJga \ BrOOford -4.9% -7.8% 1 0/, Q <-15% -14.9% to-8% -7.9% to-3% -2.$

3 Demographic trends pose a significant challenge to susta i na bi I ity Forecast change in youth population by county, KJga \ BrOOford -4.9% -7.8% 1 0/, Q <-15% -14.9% to-8% -7.9% to-3% -2.9% to 3% >3% 3

4 Funding also poses a significant challenge 45% 40% 35% Major sources of State System university revenues Tuition and mandatory fees 25% 20% 15% State appropriations 10% 5% 0%

5 Internal factors reduce the State System's ability to respond to challenges Governance State Regulations... System Office Support & Services Faculty Labor Relations e.. Market Focus 5

6 Together, these challenges are negatively affecting the universities-and trends are likely to continue Change in net position (surplus or deficit), three-year average at State System universities $millions End of three-year period Bloomsburg California Cheyney Clarion!! East Stroudsburg Edinboro Indiana Kutztown Lock Haven Mansfield Millersville s.. Shippensburg = Slippery Rock West Chester 6

7 Five options -Improve State System structure Merge State System universities regionally Convert universities to state-related status 7 /

8 Legislative Budget and Finance Committee A JOINT COMMITTEE OF THE PENNSYLVANIA GENERAL ASSEMBLY Offices: Room 400 Finance Building, 613 North Street, Harrisburg Mailing Address: P 0 Box 8737, Harrisburg, PA Tel: (717) Fax: (717) Web: us OFFICERS Chairman SENATOR ROBERT B. MENSCH Vice Chairman SENATOR JAMES R BREWSTER Secretary REPRESENT A Tl VE ROBERT W. GODSHALL Treasurer REPRESENTATIVE JAKE WHEATLEY Promoting the Long-Term Sustainability and Viability of Universities in the Pennsylvania State System of Higher Education SENATORS MICHELE BROOKS THOMAS McGARRIGLE CHRISTINE TARTAGLIONE JOHN YUDICHAK REPRESENTATIVES STEPHEN E BARRAR JIM CHRISTIANA SCOTT CONKLIN MARGO DAVIDSON Conducted Pursuant to Senate Resolution EXECUTIVE DIRECTOR PATRICIA A BERGER DEPUTY EXECUTIVE DIRECTOR CHRISTOPHER LATTA April 2018

9 Legislative Budget and Finance Committee A JOINT COMMITTEE OF THE PENNSYLVANIA GENERAL ASSEMBLY Offices: Room 400 Finance Building, 6 I 3 Notth Strccl, Hanisburg Mailing Address: P.O. Box 8737, Harrisburg, PA Tel: (717) Fax: (717) Web: OFFICERS CIUi/r111an SENATOR ROBERT B. MENSCH Vice C/mirmnn SENATOR JAMES R. BREWSTER Secretmy REPRESENTA TlVE RODERTW. GODSHALL Treasuret REPRESENTATIVE JAKE WHEATLEY To the Members of the General Assembly: April 2018 Senate Resolution 34 of 2017 directs the Legislative Budget and Finance Co1mnittee to study and issue a report relating to the long-term sustainability and viability of the Pennsylvania State System of Higher Education (PASSHE). SENATORS MICHELE BROOKS THOMAS McGARR IGLE CHRISTINE TARTAGLIONE JOHN YUDlCHAK REPRESENTATIVES STEPHEN E. BARRAR JIM CHRISTIANA SCOTT CONKLIN MARGO DAVIDSON Due to the specialized nature of this study, the Com1nittee issued a Request for Proposal for assistance in developing the report. In November 2017, the Committee contracted with the RAND CORPORATION to conduct this study. The RAND CORPORATION report is contained herein. As with all LB&FC reports, the release of this report should not be construed as an indication that the Co1mnittee or its individual Committee members necessarily concur with its findings and recommendations. EXECUTIVE DIRECTOR PATRICIA A. BERGER Sincerely, DEPUTY EXECUTIVE DlRECTOR CHRISTOPHER LATTA Patricia A. Berger Executive Director PAB:tlb

REQUEST FOR PROPOSAL (RFP #2017-1) for

REQUEST FOR PROPOSAL (RFP #2017-1) for Legislative Budget and Finance Committee A JOINT COMMITTEE OF THE PENNSYLVANIA GENERAL ASSEMBLY Offices: Room 400 Finance Building Harrisburg Tel: (717) 783-1600 Mailing Address: P.O. Box 8737 Harrisburg,