Pa. Gov. Shapiro’s higher education reforms come at a critical time, with declining enrollment and underfunding

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The reform of the state’s higher education system by Gov. Josh Shapiro is coming during a period of underfunding, declining enrollment, college mergers and an abrupt closing by the University of the Arts in June.

As part of that reform plan, Shapiro increased funding and created a new state board of education that will promote better coordination among institutions and focus on courses that meet the needs of the state’s economy.

Cheryl McConnell, president of St. Joseph’s in Philadelphia, said better coordination between colleges by the new state board may have been able to mitigate the closing of the University of the Arts.

The popular arts school on South Broad Street in Philly, which had about 1,100 enrolled students, closed suddenly June 7, leaving those students, faculty, contributors and the public in the lurch. The school later filed Chapter 13 liquidation bankruptcy in federal court, citing about $50 million in debt.

“When a university closes unexpectedly, only 50% of those students continue on to graduate. What that means for that 50% that don’t continue on is that they have student loan debt with no degree and that’s awful,” McConnell said. “So one of the things that the board is tasked with is to provide making better procedures for expected university closures and particularly unexpected closings.”

McConnell is one of 20 board members who convened for the first time in September.

In addition to educators, the board also is comprised of leaders from business, government, labor and students.

The governor’s reform package also includes a $15.7 million or 6% increase for public community colleges and a $35.1 million or 6% increase for universities that are part of the Pennsylvania State System of Higher Education (PASSHE), such as Bloomsburg Commonwealth University, Cheyney University and West Chester University.

Shapiro’s plan also provided a $120 million increase in funds for grants and scholarships, which includes $28 million in scholarships for students seeking degrees in high-demand fields, a $54 million hike in PHEAA (Pennsylvania Higher Education Assistance Agency) grants, and $5 million for scholarships for disadvantaged students.

“The State Board of Education brings together leaders from across the Commonwealth to fill an ambitious — and critical — mission: enabling our institutions of higher education to better serve current and future learners,” said Khalid N. Mumin, secretary of education, in a statement. “A thriving postsecondary system benefits our workforce, our economy, and our communities, and I am honored to serve on this board and to help create a lasting impact for generations to come.”

Another board member, vice chair Brenda Fields, president of Lincoln University, told WHYY News that affordability is a major issue that needs to be tackled.

Lincoln University is one of the state’s two Historically Black Colleges and Universities, along with state-owned Cheyney University.

“One of the most consistent issues that the state has been trying to address with higher education is affordability, and that is across the board. Our institutions are starting to outprice our consumers,” Fields said. “It especially impacts lower-income, first-generation students of color. Making sure that they have equal access and the resources that they need to pursue degrees and that it is done equitably, I think is very important.”

McConnell, the St. Joseph’s president, said that higher education can be so competitive that they sometimes lose sight of the fact that students and their choices are at the center of their mission.

“If we work together better, we can provide those coordinated pathways across types of institutions that provide clear information about pathways and transferability,” McConnell said. “We can coordinate so that students are served better throughout their span of higher education in Pennsylvania.”

Graduates of Pennsylvania community colleges with associate’s degrees are guaranteed admission to four-year PASSHE universities.

In April, Lincoln University reached an agreement with Community College of Philadelphia that allows qualified graduates to transfer to Community College’s post-bachelor’s accelerated associate’s nursing degree program.

“One of the challenges is how do we make sure that our postsecondary institutions are providing the knowledge, education, and pathways to some of the most high-need employment areas in the state, something like nursing and health care in general,” said Fields, Lincoln president. “What are institutions doing to meet that gap?”

As college tuition costs rise and the internet makes online classes more practical, institutions of higher learning have to be more innovative and sometimes seek strategic mergers or agreements, industry observers say.

“Every Pennsylvania deserves the freedom to chart their own course and opportunity to succeed,” Shapiro said in a statement.

In August, Philadelphia’s Peirce College and Lackawanna College in Scranton agreed to a merger between the two institutions that specialize in serving the needs of busy adults. The deal is expected to be completed by July 1, 2026.

The combined university will be known as Lackawanna College and will serve about 3,000 students and another 8,000 graduate students and those taking continuing education courses or seeking professional certificates.

In the last three years, St. Joseph’s acquired two colleges, the University of the Sciences and Pennsylvania College of Health Sciences.

“Both of those were strategic acquisitions for us. Kudos to those institutions for seeking out partners before they got to the closing process, said McConnell, St. Joseph’s president. “Sometimes closings can’t be avoided, but what can be avoided is the chaos that follows.”