Shapiro proposes higher ed reform, including $1,000 per semester

(The Center Square) – Gov. Josh Shapiro wants to reshape Pennsylvania higher education, announcing a plan to unite PASSHE universities and community colleges in a new governance system and cut costs to $1,000 per semester.

The commonwealth has faced a decade-long drop in student numbers, forcing the Pennsylvania State System of Higher Education to cut staff and combine six universities into two.

Democrats have pushed for more state support to bolster the system, while Republicans have pushed to tie more funding to results and work with schools as partners, not as an ATM.

State-related universities, which have attracted students away from PASSHE schools, would also see a boost from the governor’s plan.

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“Every Pennsylvanian deserves the freedom to chart their own course and the opportunity to succeed,” the first-term Democrat said in a release.

“For some, that means going right into the workforce – but for those who want to go to college or get a credential, we need to rethink our system of higher education. Whether you want to take one course to brush up on your skills, earn a certificate to qualify for a promotion, or pursue a degree that will lead to a new career – you deserve accessible, affordable higher education options … We’ll build a higher education system that opens up doors of opportunity, prepares our workforce, and serves as the linchpin to Pennsylvania’s economic success.”

Shapiro said the higher ed system has gone through a 30-year disinvestment that burdens students more than almost every other state. He will propose “a significant investment” for colleges in his budget address in February.

For students making “up to the median income,” tuition and fees will be capped at $1,000 per semester at PASSHE schools and community colleges. For students at state-related universities (Penn State, Temple, Pitt, and Lincoln) and independent colleges, the governor’s plan would boost grants from the Pennsylvania Higher Education Assistance Agency by $1,000.

The plan also includes that state funding should flow to colleges “on the basis of a predictable, transparent, outcomes-focused formula” similar to a model at Penn State.

The model would account for enrollment increases, first-generation college students who earn credentials (such as a degree or a certificate), and graduation rates, the governor said. It would incentivize recruitment into fields that face workforce shortages. The model would apply to PASSHE schools and state-related universities alike.

A number of college presidents and county officials lined up to support the Shapiro plan.

“The governor’s proposal is a real opportunity to build upon the strengths of PASSHE universities and the community colleges,” PASSHE Chancellor Dan Greenstein said. “Together we can create a new, larger system with better collaboration that gives students more pathways to a degree or credential, rapidly adjusts to the changing knowledge and skills employers want, and provides the lowest-cost option for students throughout their lifetime.”

House Republicans were cautiously optimistic about the plan, though wary of endorsing it before they learned more.

“We are glad to see the Shapiro administration join with House Republicans in prioritizing students and families while balancing the financial needs of the commonwealth as part of this plan,” House Republican Caucus Spokesman Jason Gottesman said. “While the administration’s announced plan is currently light on details, we will work with education stakeholders, the administration, and Pennsylvania families to continue moving away from the endless funding of systems in Pennsylvania so we can move toward a student-first, family-focused, and taxpayer-accountable system of higher education.”

Gottesman noted that Republicans had introduced a bill proposing performance-based funding last summer, but House Democratic leadership didn’t advance the bill.

Performance-based funding is common across America, with 41 states tying some funds to performance. Results have been “modest,” according to a 2020 report by Professors Justin Ortagus, Robert Kelchen, Kelly Rosinger, Nicholas Voorhees, and may encourage colleges to become more selective or offer shorter programs.