A joint hearing of the Senate and House Education Committees, led by state Sen. John H. Eichelberger (R-Blair), examined Monday a recent report outlining the poor financial situation the Pennsylvania State System of Higher Education (PASSHE) is currently facing.
The RAND Corporation was asked by the state Legislative Budget and Finance Committee to conduct a private study after a study attempt by the PASSHE did not meet expectations.
“The RAND Corporation’s study provides an opportunity for the General Assembly to further analyze the PASSHE system,” Eichelberger said. “PASSHE’s financial situation is dire, and time is running out. We have to take action this year to protect current and future students before this entire system of higher education fails.”
During the hearing, Charles Goldman, senior economist for the RAND Corporation, testified to the results of the study, discussing factors that are contributing to the system’s deterioration. Such factors include the expensive and restrictive faculty labor agreement, long-term demographic shifts, strong competition, limited state funding, and internal governing bodies that are not equipped to handle the challenges stated.
Increasing state funding while not adapting to the challenges at hand are not enough to solve the problems found in the report. During his testimony, Goldman presented the RAND Corporations recommendations for long-term sustainability and viability for the universities in the PASSHE. The recommendations ranged from minor structural changes in the PASSHE to merging smaller universities into larger regional facilities under the management of Penn State, Pitt, Temple, or Lincoln universities.