Should Pennsylvania keep funneling aid directly to its state-related universities — among them the University of Pittsburgh, Penn State and Temple universities — so they can keep in-state tuition prices thousands of dollars below what non-Pennsylvania students pay?
Or should it toss out a generations-old funding approach and channel half a billion dollars yearly to the Pennsylvania Higher Education Assistance Agency, so it can offer direct grants to students attending either public or private campuses?
A Republican state House member from Westmoreland County is opening another front in the national fight over school vouchers versus direct public school subsidies. The initiative came up this week as state House subcommittees discussed future higher education funding in the Commonwealth.
Tuition prices are a hot-button issue, especially in Pennsylvania, where public campus prices are among the highest in the nation. Legislators in the Republican-majority General Assembly routinely complain about costs and spending choices, while university leaders say the link between high tuition rates and sharply lagging state aid to public campuses is obvious.
In a legislative memo seeking co-sponsors for legislation, state Rep. Eric Nelson, R-Greensburg, proposed replacing $580 million in direct campus aid with grants or vouchers that could be used by students attending public and private universities. His district includes Pitt’s Greensburg branch.
"Our universities do a great job of educating students who accrue massive loans and are often forced to leave Pennsylvania to find work while our employers clamor for employees with technical skills," the memo states. “Unfortunately, some of these same universities have also grown to a point where they do not reflect the ideals of our region.
"Please join me in redefining how we fund post-secondary education in Pennsylvania. The time has come to reevaluate our long history of funding a select few major universities, and instead expand the Pennsylvania Higher Education Assistance Agency – PHEAA. This program has a proven record of success; expanding its reach will enable choice for young people interested in technical schools, community colleges, PASSHE schools, private colleges and major universities.”
Mr. Nelson, reached by phone Friday, said his planned legislation would apply only to Pitt, Penn State and Temple but not to Lincoln University, another state-related school and historically black college. He said that campus receives less aid, relies on it more and does not have billions of dollars in endowment funds collectively held by the other institutions.
Pitt officials warn the proposal is a bad idea.
It would eliminate tens of thousands of dollars in tuition discounts for Pennsylvanians who attend Pitt, made possible by the yearly campus appropriations. Campus leaders are asking alumni to contact their state legislators to voice opposition.
“Eliminating direct public funding for Pitt will — in no uncertain terms — jeopardize this discount, which currently saves Pennsylvania students and families as much as $15,000 each year and $60,000 over the course of a four-year college career,” the university said in a statement Friday.
In addition, the Pitt-published University Times quoted testimony during the hearing Monday from Pitt chief financial officer Hari Sastry defending the merits of the current system of direct subsidy.
As of this fall, the full-time in-state rates paid by the bulk of students on Pitt’s main campus are $19,092, versus $34,124 for out-of-state students. Officials have long cited the state’s direct subsidy in that difference.
“This funding directly and dramatically lowers tuition costs for in-state students,” said Mr. Sastry, noting the advantage is especially pronounced on the universities' regional campuses. “Pitt provides $284 million in tuition discounts for Pennsylvania students. The state’s appropriation accounts for around 60% of that discount; Pitt makes up the difference.”
Mr. Nelson said the bill has not been introduced but has support from about two dozen of his colleagues so far. Monday’s hearing was before subcommittees of the House Appropriation and Education committees.
Bill Schackner: bschackner@post-gazette.com, 412-263-1977 and on Twitter: @Bshcackner
First Published: October 8, 2021, 6:50 p.m.