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State budget address: Gov. Josh Shapiro proposes plan for system of higher education

By Pat Crossley 5 min read

After declaring in his 2023 budget address that the state's system of higher education was broken and needed a new blueprint, Gov. Josh Shapiro is now proposing a three-part plan to fix the problem.

"Let's be honest, what we're doing now isn't working," the governor told legislators this week. "After 30 years of disinvestment, too many of our colleges and universities are running on empty and not enough students have affordable pathways through college and into good jobs."

Currently the state ranks 49th for state investment in higher education, and 48th in higher education affordability. Enrollment at Pennsylvania State System of Higher Education (PASSHE) schools has dropped 30% and enrollment in community colleges has dropped 37%.

Part of the governor's blueprint to fix the system would unite PASSHE schools with the 15 community colleges in the state.

"This new system will preserve local leadership while ensuring we're all rowing in the same direction," Shapiro said.

"Together, our public colleges and universities will create pathways to affordable credentials and degrees while opening up the doors of opportunity and meeting the Commonwealth's workforce needs," he said.

To create and support this new system, Shapiro proposed investing $975 million, an increase of 15% over the nearly $850 million in funding last year for PASSHE universities and community colleges.

The second part of Shapiro's plan would change the way state-related universities -- Pitt, Penn State, Temple and Lincoln -- are funded.

"For too long, we've under-funded them and subjected them to political games. At the same time, I know some Pennsylvanians wonder what they're getting by investing in these institutions if they or a loved one don't go there. I'm proposing that we fund these schools through the Department of Education with a simple majority vote and that we no longer write them a blank check," Shapiro said.

"We should begin this new approach and increase their funding by 5% this year, and Pennsylvanians should know that we're going to pay for outcomes and performance," he said.

Shapiro's proposal involves creating a predictable, transparent, outcomes-based funding system that will apply to schools in the new system and to the four state-related universities. He argued that the new system would "incentivize outcomes that benefit all Pennsylvanians," while ensuring "transparency and increasing accountability for our tax dollars."

Coupled with performance-based funding, Shapiro proposed making higher education more affordable for students, whether they attend a school in the proposed new system, a state-related or any of the state's independent colleges and universities-the third part of his plan.

"Under my plan, no student or family making the median income or below will have to pay more than $1,000 per semester for tuition and fees in this new system. And to help students at every school, we'll increase PHEAA grants for students by $1,000," Shapiro said

"Next year, after this new system is in place, I'll come back to you and ask that you invest another $279 million directly into offsetting costs for our students."

"If we pass my plan and make the investments that I lay out in my budget, we would jump from 49th in the nation today to 22nd in just five years," he added.

Shapiro acknowledged that not all students take the path of going to college after high school and that all career pathways should be supported.

"Because let's remember: There are many paths to success after high school. Some of our young people will go into the military...Some will go straight into the workforce...Some will enter a union apprenticeship program. And some will go to college. We need to respect all paths to opportunity equally, and we need to invest in them," Shapiro said.

"And once those kids graduate from high school, we need to make sure they have the freedom to chart their own course and determine for themselves their next steps in life. I'm sick and tired of hearing someone say to a high school student, 'Well... college just might not be right for you. Maybe you should think about becoming a welder.' That elitist attitude is wrong, and it hurts our Commonwealth," he said.

Shapiro said that, after a year in office, 60% of the state's new hires don't have a college degree, "but do have the necessary skills to help our fellow Pennsylvanians."

He cited investments made in vo-tech, apprenticeship programs and on-the-job training, and their impact on the state's job market. Since he took office, 33 new apprenticeship programs have been registered and enrolled nearly 6,000 apprentices, he said.

"We're giving Pennsylvanians the freedom to chart their own course and the opportunity to succeed, so let's keep at it," he said.

"That's one of the reasons why I want to create a new 'Career Connect' program to connect employers with talented young people and create thousands of internships over the next 10 years. Because if we can ensure that Pennsylvanians receive a great education, from Pre-K through an apprenticeship program all the way to college graduation. If we can give Pennsylvanians the freedom to chart their own course and the opportunity to succeed...Then economic opportunity will follow," Shapiro said.

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