A semester at a state university or community college would cost as little as $1,000 for many students under a proposal by Pennsylvania Gov. Josh Shapiro, who said he will outline the details in his second budget speech next month.
Shapiro won the 2022 gubernatorial election by campaigning, in part, on improving access to higher education and workforce development in Pennsylvania to boost the state’s economy. In his first budget speech last February, Shapiro declared that the state’s higher education system was broken.
“Every Pennsylvanian deserves the freedom to forge their own path and the chance to succeed,” Shapiro said in a statement. “For some, that means going straight to work — but for those who want to go to college or earn a credential, we need to rethink our higher education system.”
Pennsylvania’s public universities have suffered from a lack of investment for 30 years, Shapiro said, leaving students without enough affordable options to earn a degree and enter the job market. Pennsylvania spends less on higher education than any other state except New Hampshire, the governor’s office noted.
Enrollment at state universities and community colleges has fallen by about a third, the governor’s office said. And colleges are competing for the same students by duplicating programs, raising costs and limiting access.
On Friday, Shapiro announced a three-step plan to revitalize public higher education by:
- Merging the Pennsylvania State System of Higher Education universities with 15 colleges in the state under a modern governance system;
- Setting tuition at these schools at $1,000 per semester for low- and moderate-income students and increasing the Pennsylvania Higher Education Assistance Agency grant for students attending private universities by $1,000;
- And distributing state funds to Pennsylvania’s state universities — the University of Pittsburgh and Penn State, Temple and Lincoln universities — according to a performance-based formula.
Democratic lawmakers supported the plan, noting it would facilitate Pennsylvanians avoid the burden of student debt.
“We must make it easier and more affordable for students to attend our public schools, which provide essential job training and high-quality college education to tens of thousands of Pennsylvanians each year, and remove barriers for students transferring between schools in this commonwealth,” House Democratic leaders said in a statement.
While GOP lawmakers said the plan is airy on details, they said they are glad the administration is joining Republicans in putting students first while recognizing the state’s financial needs.
“We will work with education stakeholders, administrators and families across Pennsylvania to continue to transition away from unrestricted funding for Pennsylvania’s systems and toward a higher education system that puts students first, is family-centered and held accountable to taxpayers,” said Jason Gottesman, spokesman for House Minority Leader Bryan Cutler (R-Lancaster).
Senate Majority Leader Joe Pittman (R-Indiana) said ensuring Pennsylvania is an economic leader depends on a powerful workforce and jobs in the state, as well as maintaining access to higher education, which is key to promoting economic growth.
Pittman said Shapiro’s proposed changes are significant, and his plan did not include information on how the state would fund them. Key considerations in implementing such changes include the cost to taxpayers and the impact on communities where state universities are located, Pittman added.
“The details matter, and a proposal of this scale will require an incredibly rigorous review,” Pittman said, adding that he looked forward to discussing the proposal with Shapiro and other lawmakers.
For several years, state university funding, used solely to provide tuition discounts for Pennsylvania residents, has stalled in the General Assembly during budget season, with Republican lawmakers citing objections to fetal research, gender-affirming care, lack of transparency and rising tuition as reasons to withhold the two-thirds majority needed to approve the allocation for private institutions.
State Rep. Seth Grove (R-York), who is the ranking Republican on the House Appropriations Committee, was less complimentary of Shapiro’s plan, describing it as a “three-step financial disaster plan.” Grove said it would involve unsustainable spending growth, depleting the state’s $12 billion surplus and future tax increases.
“In short, this plan creates more red tape, requires more spending and raises more questions than it answers,” Grove said, adding that it is inconsistent with Republicans’ position that the state should fund students, not institutions.
“Shapiro should propose direct funding to ensure that every child of God has the opportunity to pursue a college education. But given his history of backpedaling on school choice, it seems the governor is once again siding with unions at the expense of students,” Grove said.
Shapiro’s statement included statements of support from the presidents of the state university system and all state universities.
PASSHE Chancellor Dan Greenstein said the consolidation of several state universities over the past six years has shown that collaboration benefits students, communities and employers. Shapiro’s proposal would build on the strengths of state universities and colleges.
“Together we can create a new, bigger, more collaborative system that provides students with more paths to a degree or qualification, adapts quickly to the changing knowledge and skills employers want, and provides students with the lowest-cost option for life,” Greenstein said.
Penn State President Neeli Bendapudi said performance-based funding for state colleges will not only improve transparency and accountability, but also facilitate ensure positive student outcomes.
“I am extremely pleased that part of Governor Shapiro’s plan is to call for a predictable, performance-based funding formula, and we look forward to working with the Legislature to implement such a model,” Bendapudi said.
