mba592 will robinson presentation

SUSTAINABILITY OF TWO-YEAR HIGHER

EDUCATION INSTITUTIONS IN PENNSYLVANIA

“Weathering the Storm“

Presentation for MBA 592 Dr. Jennifer Edmonds December 6, 2016

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

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

Proprietary Two Year Institutions

Average age – 25.09 Male 25.88 FemaleExamples – Chubb, ITT, McCann, Johnson Technical InstituteCambria-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

17 -COMMUNITY COLLEGES 133,737Families of less than $40K make up 35% of CC studentsOften first in their families to attend collegeTypically younger – just out of high schoolAverage net tuition is $6,600 / yearLower achieving high school graduatesHarrisburg Area CC = 19,121 studentsSubsidized by local governments

Most credits transferable to a 4 year college

15 - NON-PROFIT JUNIOR COLLEGES-8,045

Average tuition for a two-year nonprofit college is $19,167Smaller classes than CCs –mentoring, counseling, advising

Examples:Harcum, Lackawana, Manor, Pennsylvania Institute of Tech.Typically open admissions

Middle States Commission on Higher Education accreditation

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

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

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

Composite Financial Index – 4 RatiosPrimary Ratio = net assets / total operating expenses – minimum 0.4Net 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)

Two Year Colleges versus - Tuition for Wilkes University's bachelor's degrees in business is $15,432 per academic year.Luzerne County Community College - $6,642Safe entrance portal for underachieversTeaching focusAgile curriculum development

Slightly higher institutional commitment vs social

Pennsylvania Institute of Technology SurveyTwo Year MSCHE accredited institutionCampuses in Media, Pa and Center City Philadelphia466 Students – Survey sent to + Amazon $5 card43 responses

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

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

39.5%

27.9%

16.3%

4.7%11.6%

How likely are you to rec-ommend Pennsylvania Insti-tute of Technology to oth-

ers?

Extremely likely Very likely

Somewhat likely Not so likely

Not at all likely

32.6%

34.9%11.6%

9.3%4.7%

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

Sustainability Solutions

Merge or become branch location of a 4 year college

Court local employers/industries for specialized programs

Certificate Programs

Facility Sharing

Questions ? Concerns? Comments?

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