This document discusses the sustainability challenges facing two-year higher education institutions in Pennsylvania. It notes that there are 64 for-profit proprietary schools, 17 community colleges, and 15 non-profit junior colleges in the state. It outlines challenges such as retention, chronic financial distress, lack of endowments, open admissions policies, and few dormitories. Specific financial sustainability ratios that the Department of Education uses are presented. Potential solutions discussed include merging with four-year schools, specialized workforce programs, and facility sharing.

1. SUSTAINABILITY OF
TWO-YEAR HIGHER
EDUCATION
INSTITUTIONS IN
PENNSYLVANIA
“Weathering the Storm“
Presentation for
MBA 592 Dr. Jennifer Edmonds December 6, 2016

2. Will Robinson –
Neumann University – 1999 - 2003
 Board of Advisors – Graduate Business School
Delaware Military Academy –2001- 2008
 Founding Board Chair
Pennsylvania Institute of Technology – 2011 -
 Chair – Board of Trustees
Welcome & Thank You

3. 64 - FOR PROFIT PROPRIETARY SCHOOLS- 26,013
17 - COMMUNITY COLLEGES – 133,737
15 - NON-PROFIT JUNIOR COLLEGES- 8,045
Pennsylvania 2016
2014 – about 165,000
7.9% of Pennsylvania Population hold an associates degree

4. Proprietary Two Year Institutions
Average age – 25.09 Male 25.88 Female
Examples –
Chubb, ITT, McCann, Johnson Technical Institute
Cambria-Rowe College & School of Technology (13)
July 2016 – Department of Education
Ceased to recognize –
Accrediting Council for Independent Colleges and Schools
FOR PROFIT PROPRIETARY SCHOOLS- 26,013

5. 17 -COMMUNITY COLLEGES 133,737
Families of less than $40K make up 35% of CC students
Often first in their families to attend college
Typically younger – just out of high school
Average net tuition is $6,600 / year
Lower achieving high school graduates
Harrisburg Area CC = 19,121 students
Subsidized by local governments
Most credits transferable to a 4 year college

6. 15 - NON-PROFIT JUNIOR COLLEGES-8,045
Average tuition for a two-year nonprofit college is $19,167
Smaller classes than CCs –mentoring, counseling, advising
Examples:
Harcum, Lackawana, Manor, Pennsylvania Institute of Tech.
Typically open admissions
Middle States Commission on Higher Education accreditation

7. Challenges for Two Year Colleges
• Retention
• Chronic Financial Distress
• Little or no endowment
• Economic Equilibrium
• No research funding
• Deep discounting
• Alumni gifting
• Open Admissions
• Few dormitories

8. Challenges for Two Year Colleges
• Retention
• Chronic Financial Distress
• Little or no endowment
• Economic Equilibrium
• No research funding
• Deep discounting
• Alumni gifting
• Open Admissions
• Few dormitories

9. Chronic Financial Distress
Composite Financial Index (CFI) Ratios –
the life or death of a college
CFI–Financial Rating System that
U.S. Dept. of Education uses to calculate
the eligibility of colleges to receive student aid funds

10. Composite Financial Index – 4 Ratios
Primary Ratio = net assets / total operating expenses
– minimum 0.4
Net Income Ratio = operating surplus / divided by
operating income (2% to 4%
Return on Net Assets = change in net assets divided
by net assets at the beginning of the year (3% to 4%)
Viability Ratio = net assets / total long term debt
(1.2-2.0)

11. Two Year Colleges versus -
Tuition for Wilkes University's bachelor's degrees
in business is $15,432 per academic year.
Luzerne County Community College - $6,642
Safe entrance portal for underachievers
Teaching focus
Agile curriculum development
Slightly higher institutional commitment vs social

12. Pennsylvania Institute of Technology Survey
Two Year MSCHE accredited institution
Campuses in Media, Pa and Center City Philadelphia
466 Students – Survey sent to + Amazon $5 card
43 responses

13. Add a Slide Title - 5
25.6%
20.9%
20.9%
11.6%
9.3%
2.3%
9.3%
What is your age?
18 to 21
22 to 25
26 to 29
30 to 33
34 to 37
40 to 45
46 or older

14. 48.8%
25.6%
2.3%
4.7%
9.3%
9.3%
How likely are you to continue
attending Pennsylvania Institute of
Technology next term?
Extremely likely
Very likely
Somewhat likely
Not so likely
Not at all likely
I will be graduating

15. 39.5%
27.9%
16.3%
4.7%
11.6%
How likely are you to
recommend Pennsylvania Institute of
Technology to others?
Extremely likely
Very likely
Somewhat likely
Not so likely
Not at all likely

16. 32.6%
34.9%
11.6%
9.3%
4.7%
0.0%
7.0%
Overall, are you satisfied with your
experience at Pennsylvania Institute of
Technology?
Extremely satisfied
Very satisfied
Somewhat satisfied
Neither satisfied nor dissatisfied
Somewhat dissatisfied
Very dissatisfied
Extremely dissatisfied

17. Sustainability Solutions
Merge or become branch location of a 4 year college
Court local employers/industries for specialized
programs
Certificate Programs
Facility Sharing

18. Questions ? Concerns? Comments?

19. References
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Journal of Educational Leadership Preparation, 62-71.
Benner, J., Connelly-Weda, C., Ford, W., & Beem, C. (2015). Misery Loves Company: Our Regional Two-Year College Assessment Consortium. Assessment Update, 8-11.
Benner, J., Ford, W., & Beem, C. (2013). It Takes a Regional Village: The Eastern Pa Two-YearCollege Assessment Consortium. Middle States Commission on Higher Education
Annual Conference. Montclair, N.J.: MSCHE.
Carey, k. (2014, 07 03). Corinthian College is Closing. Its Students may be Better Off as a Result. Retrieved from The New York Times - The Upshot:
http://www.nytimes.com/2014/07/03/upshot/corinthian-colleges-is-closing-its-students-may-be-better-off-as-a-result.html
Community Colleges in Pennsylvania. (2016, 10 10). Retrieved from US News Education: http://www.usnews.com/education/community-colleges/pennsylvania
Crawford, B. (2003). 21st Century Learning Outcomes Project. The Journal of General Education, 266-282.
(2014). Education - Junior Colleges NAICS 611210. Philadelphia: Risk Management Associates. Retrieved from Risk Management Associates.
Farmer, E., & O'Lawrence, H. (2002). Differences in Characteristics of Postsecondary Technical Studies In Pennsylvania Community Colleges and Two-Year Proprietary Institutions.
Journal of Career and Technical Education, 41-52.

20. References
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21. References
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Selingo, J. (2016, 7 5). How We Can Make Higher Education Great Again. Retrieved from Linkedin: https://www.linkedin.com/pulse/how-we-can-make-higher-education-great-again-jeff-selingo
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