State system freezes college tuition again
Students attending state-owned universities, including Slippery Rock University, will not see a tuition increase next year.
The Pennsylvania State System of Higher Education voted unanimously Wednesday to approve a tuition freeze for the 2020-21 fiscal year.
“We did it last year. We will do it this year,” said Chancellor Dan Greenstein. “We recommend to the board that we freeze tuition for 2020-21.”
Board chairwoman Cynthia Shapira said today's COVID-19 climate has hurt families across the state and country, and it would not be fair to put an additional financial burden on students and their families.
“I believe this is the first time in PASSHE history that we have frozen tuition for two consecutive years,” Shapira said. “That demonstrates our commitment to our students.”
Slippery Rock University President William Behre attended the online Zoom meeting of the board Wednesday. Last year, when the system froze tuition, Behre voiced his concern that it was not a long-term solution to remaining financially stable.
Earlier in the year, SRU's board of trustees initially moved forward in budget discussion by sending a request to PASSHE for a 3.5 percent increase in tuition for the 2020-21 fiscal year.
Behre said two weeks after realizing the extent of the pandemic, university officials rescinded that request.
“In the current context, the only prudent thing to do is make costs more predictable for our students,” Behre said.
The system framed its decision by taking a look at the financial toll on some of its universities caused by COVID-19.
Greenstein reviewed an estimated impact to universities and their affiliates of about $52 million in lost revenue through the summer of 2020. He said this included funding from the Coronavirus Aid, Relief, and Economic Security (CARES )Act.
“The math isn't good,” Greenstein said. “This is potentially years in recovery.”
In the same motion as that of the tuition freeze came a tentative recommendation for a 1 percent increase in tuition for the 2021-22 fiscal year.
Shapira said the tentative increase helps families further prepare.
“It's important for families to know where we're going.”
According to Behre, Slippery Rock will be fine with another year of a tuition freeze, but he reiterated his point from one year ago: Tuition freezes are not sustainable year after year.
“It's like erosion,” Behre said. “I want to be clear that we can absorb this year, and our much bigger threat to us is if this pandemic doesn't leave and we can't go back to normal.”
Behre said university officals are estimating about a $6.4 million loss in revenue that includes the summer classes and activities of 2020.
He said including the university's affiliates, which are some of its housing options and the student government association, the university is nearing about $7.2 million in losses.
The CARES Act will take care of some of that loss, but not all of it.
Behre said SRU is looking at a net loss of about $3 million after the CARES Act and negotiations with vendors whose services weren't required for the full term.
But even the CARES Act carries some level of uncertainty.
Jeff Smith is chairman of SRU's board of trustees and Wednesday also served at his last meeting as president of the Pennsylvania Association of Council of Trustees, which reports to the PASSHE board.
Smith said the distribution of CARES Act funding has not been explicitly determined.
“There's going to be a lot of demands because a lot of people had a lot of expenses,” he said.
Smith said his other key concern is returning students. He said no one wants to see a student unable to return because of finances. He said how the students return in the fall, whether they will be on campus or online, also will affect the school's finances.
“I think everyone is hoping for the best that they'll be able to come back, but we've got a ways to go to get through the next couple of months,” Smith said.
Behre said Slippery Rock University was financially one of the top institutions in the PASSHE, and he said it will help the university continue to give its students the best possible education it can offer. He said all eyes will be on the coronavirus for its next move.
“We don't have excess staff. We don't have excess debt,” Behre said. “You plan and save for the rainy day. Well, it's raining real hard out there now, and because we did that, we can weather the storm.”
The SRU Council of Trustees will meet remotely on May 7.
