BC3 may face rising debt as state cuts aid
HARRISBURG - Butler County Community College representatives were among those who spoke Monday at a hearing about the financial crisis of the state's 14 community colleges.
A change in how the state supports these colleges has caused them to get less state aid.
"To help combat this shortfall in funding, community colleges have had to raise class sizes, cut out discretionary spending, defer maintenance projects and dip into their reserves," said BC3 dean of finance Lynn Burtner.
"You can do those kinds of things for a year, maybe two, before there starts to be a negative repercussion. We're now on year three, and these things can't be put off any more."
Burtner testified at the state Senate legislative hearing, along with presidents and trustees from other community colleges.
The crisis is caused by a funding change enacted two years ago by the state Department of Education. Before that, community colleges received state funding
for
students enrolled. Under the new formula, the 14 colleges must share a specific pot of state money set aside for them.
This pot system is not meeting the funding needs of the 14 colleges, said Burtner.
For example, last year, BC3 had a $400,000 shortfall in state funding. Burtner said the college had to cut out maintenance projects such as road repair and parking expansion, and also increased tuition to break even.
This year, BC3 is facing a $500,000 shortfall, "and the year isn't over yet," Burtner said. Its budget is $17.84 million for this year.
Similar concerns were heard by others who testified Monday.
Increased student enrollment of 23 to 60 percent statewide at all community colleges is only causing more of a funding shortfall, some testified. BC3 currently has more than 3,000 students just on its main campus in Butler Township.
BC3's enrollment has steadily increased in the past three years, Burtner said. While the students are being educated, there are improvements the college wants to make to its student services but can't because BC3 doesn't have the funds.
Steven Curtis, the Pennsylvania Commission for Community Colleges chairman, testified there are three outcomes from this financial crisis:
Community colleges will cease to be affordable for students;
Community colleges will cease to be accessible to students and the public as some programs and classes may be reduced in size or eliminated to save money;
Appropriate funding must be found.
"We must find a solution to the crisis," Curtis said in a press release. "The mission of the community colleges - to provide affordable and accessible higher education for all Pennsylvanians - must be preserved."
The state's community colleges are facing a $32 million structural operating deficit and unfunded capital needs for buildings, classrooms and technology in excess of $500 million.
Pennsylvania ranks 40th in its average state support per full-time enrolled student, according to a report issued by the Education Commission of the United States. BC3 gets its funds from the state, the county and student tuition.
Those who testified Monday recommended a package of reform measures as a long-term solution to the crisis.
Measures recommended are: the restoration of funds to eliminate the operating deficit; the creation of a dedicated, annual line item in the state budget for capital projects; reforms to simplify the funding formula to eliminate audit issues; reforms to require full funding under the formula for future years; and the creation of a statewide Board of Governance for all community college system institutions.
Burtner said the state Department of Education has hired a consultant to explore the funding formula and to see if it needs to be revised.
Burtner hopes action is taken soon because although BC3 is a little better off than some of the other community colleges, that situation won't continue forever.
"It's truly frightening for us now, moving into the third year without adequate funding," she said.
