Board of Governors Approves Modest Tuition Increase

Harrisburg – The Board of Governors of the Pennsylvania StatePASSHE System of Higher Education today approved a modest $198 tuition increase – $99 a semester – for the 2014-15 academic year, virtually assuring the 14 State System universities will remain the lowest-cost option among all four-year colleges and universities in the Commonwealth.
 
The Board also approved nine new flexible pricing plans for six universities beginning either this fall or in fall 2015, bringing to 18 the number of proposals that will be implemented on a pilot basis over the next two years, and a new Associate of Arts in sustainability studies degree program to be offered by Lock Haven University of Pennsylvania beginning this fall. The Board also extended the contracts of 10 university presidents through June 30, 2017, and re-elected its officers for the 2014-15 year.
 
2014-15 tuition rate $3,410 per semester
 
The base tuition rate for full-time, resident undergraduate students attending any of the State System universities this fall will be $3,410 a semester, or $6,820 for the full academic year. Nearly 90 percent of PASSHE students are Pennsylvania residents and about 85 percent attend full-time.
 
“PASSHE universities offer tremendous value to students and their families, providing a unique combination of high-quality educational opportunities and the most affordable cost available,” said Board of Governors Chairman Guido M. Pichini.
 
The tuition increase approved by the Board essentially matches next year’s projected rate of inflation of about 3 percent. It marks the eighth time in the last 10 years the State System has been able keep the increase at close to the inflation rate. It has been able to do so despite the fact that funding from the state has been held steady for four consecutive years and now stands at just slightly above the amount that was received in 1997-98 – 17 years ago.
 
As funding support has declined over the last decade, the universities have eliminated or avoided more than $250 million in operating costs from their combined budgets through efforts such as strategic sourcing, energy management, automating processes and services, reducing staffing levels and eliminating noncore and lower-priority programs and functions. The universities will need to make additional combined reductions totaling about $30 million this year in order to balance their budgets.
The 2014-15 state budget passed by the Legislature last week and awaiting Gov. Tom Corbett’s signature includes about $412.7 million for the State System, the same amount it has received each year since 2011-12, and about $90 million less than the System received in combined state and federal funds in 2010-11.
 
“Our university leadership, especially our presidents, should be commended for the tremendous work they have done to contain their institutions’ costs and to become even more efficient in their operations during these challenging times,” Mr. Pichini said.
 
While struggling to keep their costs under control, the universities have continued to enhance the quality of programming they offer, with the vast majority of their academic programs earning or maintaining accreditation from professional organizations nationally. The universities also are offering more advanced professional degrees in response to growing workforce demand in areas including healthcare and science-related fields.
 
“The universities are doing what they need to do to meet the needs of students and their future employers,” said Chancellor Frank T. Brogan. “As those needs change, our universities are realigning and redesigning programs and developing new programs that will help ensure students gain the knowledge and skills they need to be successful in their careers and personal lives.”
 
With the tuition and other anticipated fee increases, the average total cost of attendance for a full-time, resident student at a State System university next year – including combined tuition, fees, room and board – will be about $18,500.
Full-time, nonresident tuition will range from about $7,160 to $17,050.
 
Flexible pricing plans offer discounts to active military and veterans
 
The Board approved a third round of flexible tuition and fee proposals submitted by various universities. The universities can submit proposals to adjust their tuition rates and certain fees charged to students under two-year pilots.
 
The programs will be evaluated over the two-year period to determine their effectiveness. If successful, the programs could be continued, and even duplicated at other universities. The first six pilots were approved by the Board in January; three more in April.
  
“We are committed to being the most flexible, collaborative, and student-centered university system in America,” said Chancellor Brogan. “And this moves us another step in that direction.”
 
Cheyney University will provide a 10 percent tuition discount to military personnel, both active duty and veterans, beginning in fall 2015. Mansfield University will provide a similar discount to veterans enrolled in its online programs, similar to an earlier proposal approved for California University of Pennsylvania, beginning this fall.
 
Cheyney and East Stroudsburg universities will provide a 10 percent discount to students who enroll in their classes offered at PASSHE Center City beginning this fall. Both Millersville and West Chester universities, the other two State System universities that offer classes at the facility, had received approval earlier to offer a similar discount.
 
Mansfield also will reduce tuition to out-of-state students who meet certain academic standards. The reduced rate would range from 5 percent to 50 percent above the in-state rate. Additionally, Mansfield will charge a $100 per course fee for high-cost courses in art, biology, chemistry, respiratory therapy, nursing, nutrition, math, computer information systems, music and psychology.
 
Millersville University plans to charge tuition on a per-credit basis rather than a flat rate beginning in fall 2015. A similar plan was approved earlier for Clarion University.
 
Edinboro University will charge a 5 percent per-credit fee for studio art courses this fall and a 25 percent fee for nursing students beginning in fall 2015.
 
Lock Haven University will revise its undergraduate educational services fee to better reflect actual costs.