Gov. Josh Shapiro of Pennsylvania unveiled a comprehensive plan on Friday to revamp the state’s sprawling higher education system, which he has criticized as ineffective. The proposed overhaul aims to reduce tuition for many students, increase state funding for public higher education, and tie school funding to performance metrics.
Under the plan, 10 of Pennsylvania’s state universities and all 15 community colleges would be consolidated under a single governance structure. Additionally, students with low to middle incomes would only have to pay $1,000 per semester in tuition. Notably, the plan does not impact Pennsylvania’s well-known public universities such as Penn State, Pittsburgh, and Temple.
“After 30 years of disinvestment, too many of our colleges and universities are running on empty and not enough students have affordable pathways into good jobs,” stated Gov. Shapiro. The overhaul proposal has been in development for nearly a year by a working group formed by the governor, who identified issues within the system shortly after taking office in 2023.
Gov. Shapiro had voiced concerns about the negative effects of competition among state-funded universities, resulting in duplicated degree programs, increased costs, and limited access. While the exact funding details and potential reductions in university departments are yet to be disclosed, the governor is expected to reveal more information during his budget message on February 6.
The specific governance structure of the new system, including the presence of a single board and chancellor, is still being negotiated with the state legislature, according to a spokesperson for the governor. While cost-saving measures are a priority, including the potential consolidation of administrative functions, campus closures are not part of the current plans.
The proposed funding model would reward universities based on performance metrics such as graduation rates and the number of first-generation college students receiving credentials. Pennsylvania currently ranks poorly in terms of affordability and spending for public higher education, occupying the 48th and 49th positions, respectively, according to Gov. Shapiro’s office. A 2021 analysis by the independent think tank Center on Budget and Policy Priorities revealed that Pennsylvania was one of only four states where students had to allocate 20% or more of their household income to higher education.
College affordability has become a growing concern nationwide, as states have reduced public funding for higher education since the 2008 financial crisis, shifting a greater burden onto students. Consequently, several governors, regardless of political affiliation, have proposed additional funding for higher education.
The plan put forth by Gov. Shapiro primarily affects 10 smaller public universities within the Pennsylvania State System of Higher Education. These institutions have experienced a significant decline in enrollment over the past decade, dropping from 115,000 students in 2012 to 83,000 in 2023. Community college enrollment in the state has witnessed a similar decline. Furthermore, colleges anticipate further drops in enrollment in the coming years due to lower birth rates following the 2008 financial crisis.
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