The value of an LHU education
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LOCK HAVEN -- "We are not worried about the future," the president of Lock Haven University said. "We are planning for our future and have been for the past six years."
The president, Dr. Michael Fiorentino Jr., said university finances and academics go hand in hand, and involve a balancing act between "pushes and pulls."
So what is the value of an LHU education?
"The value doesn't simply come from the cost," Fiorentino said. "It's the environment, culture and programs on campus."
The university is known for its health-related courses, particularly the physician assistant graduate degree, and other science programs, according to Rodney Jenkins, LHU vice president for university relations.
"We want our students to be well prepared to enter their professional field of choice and also prepared to be good citizens," Fiorentino said.
"We offer a very good complement of academic programs, student activities, athletics, resident life programs that contribute to student life," he said. "Going to college is not just about going to class. It's much more than that… residence halls, food service, clubs, athletics all play an important role in the well-being of an institution."
Social and personal development, interacting with people from different backgrounds, engaging in activities, are all important components of what students learn at LHU.
DECREASING ENROLLMENT
The recent news that the university saw its enrollment drop by 8.4 percent last semester -- the largest decrease at the time among the 14 state universities -- is not a reflection of the quality of the LHU experience, the president said.
Rather, it is the natural result of having a peak student year in 2010, he said.
Six and a half years ago, LHU had more than 5,400 students. It was a growth period that pushed the envelope of the university's facilities, the president said.
Those students have swelled the university's graduating classes. Awarding lots of degrees to qualified graduates is "a good way to lose students," he said.
LHU's incoming freshman classes weren't able to completely replace all those graduates in recent years, though, due to a nationwide dip in high school students, a trend that has been particularly marked in the Northeast. With fewer high school graduates to move on to the college level, many of the state universities are seeing a general drop-off.
"The world around us has changed significantly," Fiorentino said.
Institutions of higher education must take a hard look at themselves and at student needs including how to prepare them for a career.
LHU started as a professionally focused school, offering teacher education, the president pointed out. As it expanded, it offered liberal arts and sciences. Yet, there is always a "push and pull" between liberal arts and professionally focused courses, he said.
"The days of being everything to everyone are gone. We have to be strategic about what we offer and how we offer it," Fiorentino said.
LHU has some financial evidence that what it's been doing has worked, in academic management, student affairs, retention rates, and use of resources.
Performance funding makes up a portion of the state allocation for the 14 universities, and it is awarded for measurable student success, student access, and stewardship of resources, reported William T. Hanelly, vice president for finance and administration.
Last year Lock Haven tied with Slippery Rock University as the top state university in performance measures.
LHU needs to continue to be strategic, and it carefully examines its financial well-being in a systematic manner, all across its operations, looking for improvements and efficiencies that will save money year after year, the administrators said.
Changes have been made in "an open, transparent process," the president said. "Some will say we need to have more communication, more information, but we do it regularly and openly, as much as possible."
STATEWIDE CHALLENGES
Lock Haven University's financial well-being is directly linked to challenges on the state level.
Finances are driven by two factors: state funding and tuition fees.
The Legislature has not provided adequate funding for higher education, the LHU administrators said. The state allocation is now only 26 percent of LHU's budget.
Tuition is decided for Lock Haven and the other state universities by the Pennsylvania State System of Higher Education (PASSHE).
"No one suggests this is the right equation," Fiorentino said.
"If the state doesn't grow, it will become a challenge for us to maintain our financial picture in the future. We have to be realistic. Things could change and they could change rapidly," he said.
And competition is high with many other institutions angling for recent high school graduates in a shrinking pool.
"Private colleges and universities are discounting tuition at a very high rate," Fiorentino said. "The gap is shrinking," he said, between state universities and private ones.
Last year, private institutions discounted tuition by 48 percent on average across the nation, a statistic that is true in Pennsylvania as well, he said.
CHANGES FOR THE GOOD
In the continuing search for savings and good use of resources, LHU has moved into a "virtualized environment" in information technology, Hanelly said. The desktops and the computer labs don't need computers with a lot of memory on every desk now because all the software is in a centralized location.
LHU started this several years ago and is now a leader among the state universities, he said.
The university is also saving "a couple hundred thousand dollars a year" by using PennREN, a network that is a commonwealth investment. It connects universities, medical centers, research centers, at a much lower cost.
Campus buildings were demolished in recent years, for a savings of about half a million dollars a year in the costs of operations, maintenance and repairs, Hanelly added.
LHU has an active Energy Management Committee. Just about all the buildings are on a common climate control system, and energy-efficient lighting has been installed across campus.
"We continue to look at all aspects for savings," he said.
In athletics, Jenkins said, the transportation contract was recently renegotiated. The university also bought two vans for athletics during the last fiscal year which will bring more savings. Insurance for athletics also was renegotiated to save about $40,000, he added.
But, he said, there are only so many dollars that can be saved in this manner. Some sports teams may be cut in the university's near future.
REACTING TO REALITY
"Even after doing all of the prudent things, you still have the realities of the industry," Jenkins said, including things the university has no control over, like a population decline.
Each university has to decide what sort of university it will be and what measures will work for it, he said.
Certain regions of the country are in a growth pattern, including some Southern states, California and some other regions in the West, Fiorentino said, due to both population movement and immigration. But New England, New York, Pennsylvania, Delaware are seeing a different picture, including the drop in high school graduates.
These demographics, coupled with increased competition -- including from institutions beyond Pennsylvania's borders -- will color the next three to four years, the president said.
Another factor is a growing number of high school graduates who are not seeking four-year degrees. They want a degree but they also want to save money and enter the work force sooner.
"People's goals have changed," Fiorentino said.
LHU offers five associate degrees, including one in nursing and one in actuarial science, that can be completed sooner than a bachelor's degree.
In some cases, students who earn associate degrees come back later in life to get four-year degrees, the president said.
The university also is examining the idea of offering certificate programs, he said. These programs involve a small number of course credits -- 15 to 18 credits -- and prepare the student for a specific professional or semi-professional position. People who already have a degree might want to earn a certificate as their careers go forward.
ATTRACTING STUDENTS
The cost to students and families has increased, but there is still good value in an LHU education, the administrators said. Demonstrating that value to potential students is key.
The university is in the process of hiring the next admissions director, and the search has reached the in-person interview stage. The position demands someone with skills in enrollment, recruitment strategies, marketing and promotion, as well as an understanding of who potential students are, what they want, and where they might come from.
Recruitment has continued in the meantime with the regular open house programs, campus visits, admissions staff out on the road, and more marketing on social media, Jenkins said.
Scholarships, as well as financial aid, help LHU compete. The vast majority of donations to the LHU Foundation are in the form of scholarships, and the university recently gave more than $1 million in scholarships to 750 students.
It also has increased the number of its scholarships over the last five years, Fiorentino said. The intent is to continue to grow and add new ones, he said.
WHAT STUDENTS PAY
Tuition is $7,238 per academic year for a full-time student who is a Pennsylvania resident, and the total a student pays in tuition and fees is $10,229.
Tuition is not the same for every state university right now. The PASSHE Board of Governors has approved tuition and fee pilot programs for greater flexibility, and these programs are in their third year. The board will examine them and decide if any will become permanent, Fiorentino said.
LHU follows the standard tuition program. Administrators say it is working here, at least for now.
But it is trying something new with the Educational Service Fee, and this method seems to be working as well. The Educational Service Fee is a relatively small instructional fee to cover science lab expenses, art supplies, clinics, services like the health center and the trollies. Instead of levying it at one rate across the board, LHU now levies it at a flat rate for the first 12 course credits, then charges an extra fee for any credit past 12. The idea is that if you take more classes, you are getting more, so you pay a little more.
Other fees are the Student Facilities Fee for the PUB and Student Recreation Center and the Student Activities Fee to support clubs and athletics.
"Any increased costs to the university have to come from somewhere. The burden is generally placed on the backs of students and their families," Fiorentino said.
Increased costs are due to inflation as well as increases in salaries and benefits, he said. Benefit costs at LHU are high compared with private industry, private colleges, even the other state-related universities, he said.
The university regularly examines every faculty and staff position and staffing needs, looking for positions that can be consolidated, he said. By using attrition, not layoffs, the university has reduced its total number of employees -- faculty, staff, administrators -- for at least the past six years, he said.
Cutting equipment costs does not result in the biggest savings, Fiorentino said. For LHU and just about any school, the big savings are in personnel.
"It's the biggest part of our budget," he said.
WHAT STUDENTS STUDY
The university has also instituted a formal planning and review process for academic programs. It's an ongoing process that is in its third year. The purpose is not to eliminate programs but to identify an "academic program array to attract students," the president said.
Fewer general education ("gen ed") courses are required now than in the past. This means students get into courses in their majors faster, the president said.
Community service is still a part of the curriculum. "It is an expectation for everyone," he said.
At LHU, programs are not eliminated, they are placed "in moratorium," and a few are there now. If programs are gone, it's because they were not attracting students, the president said.
There will be jobs available to students when they graduate that haven't been created yet, in emerging professions. To teach for these jobs, LHU provides a core of what students need to develop critical thinking, analytic skills, communication skills, problem-solving. They learn these skills across their courses, Fiorentino said, as a background that will allow them to adapt in the working world.
'NOT A
BAD THING'
The PASSHE chancellor, Frank T. Brogan, recently announced the beginning of a four-month in-depth review of the entire state system.
In his "state of the system" address in January, Brogan used the alarming words "mergers" and "closures."
Fiorentino said he doesn't believe the chancellor was predicting any state universities would merge or close as a result of the review. It has been 30 years since a really comprehensive review was performed, he said, and this one may result in regionalization of some of the things the universities do business-wise, he said.
The chancellor also said in his address, "Consider this: by 2020, more than 60 percent of jobs in Pennsylvania and nationally will require at least some postsecondary education, and one-third of the projected job openings in this state are expected to require a bachelor's degree or higher. We must be there to meet that need."
On the local campus, the focus is on spending within the university's means, Jenkins said, so that Lock Haven University will be there when future students need it.
"Change is inevitable," Fiorentino said. "It's not a bad thing. It helps us grow and improve as a university, as long as it's not done in an arbitrary manner."
He added, "You can't hold onto everything. You have to evolve."