“Board of Trustees set to meet Sept. 22-23”

[GrimReaper]

SOP for college boards of trustees, in general.

Not terribly different for independent boards of companies. Difference is that those folks have a reasonable comprehension of what's presented and if they don't they'll stop the presentation and ask questions until they do. If that happened at a PSU BoT meeting, Schuy King would put a quick stop to it (can't be wasting Neeli and Sara's time).

 

[Moogy]

What Mark Twain once advised applies here. So, I'm out.

Wise choice. That way we still can feign doubt.

 

[Midnighter]

 

[J.E.B]

The board welcomes the opportunity for free expression of public views on issues before the trustees.

Sure.... just like PSU Town Halls only take pre-submitted questions, err softballs. Do these people really take themselves seriously or are they tone deaf? Never mind, I know the answer to that. Still waiting for Brandon Short to impose change. Lets go Brandon, let's go Brandon.

 

[J.E.B]

Editorial: Penn State's executive committee's private meetings are shameful

Members of Penn State University’s executive committee haven’t met publicly since Dec. 2, 2011, when they discussed the very public Jerry Sandusky...

www.post-gazette.com

 

[ValleyForgeLion]

Fenchak's write up of the BOT meeting: https://barryfenchak.substack.com/p/my-public-comments-from-the-penn

The subtitle says it all - Tldr; Yea 32, Nay 1 (Fenchak). My question is - if this new budget is actually making Penn State's deficit $280M, why was there only one Nay? Did the other 5 alumni trustees sit there with their teeth in their mouths rubberstamping this POS?

 

[J.E.B]

Unbelievable. So they operate at a $120m deficit last year and are forecasting to better that by 33% this year and that’s acceptable? It is a bunch of chimps running the place. WTF is going on here?

 

[GrimReaper]

Unbelievable. So they operate at a $120m deficit last year and are forecasting to better that by 33% this year and that’s acceptable? It is a bunch of chimps running the place. WTF is going on here?

Not that I'm minimizing the role of the BoT, but one might want to ask WTF the new President and her minions are doing. Those are the folks who originate the budget.

 

[PSUFTG]

Fenchak's write up of the BOT meeting: https://barryfenchak.substack.com/p/my-public-comments-from-the-penn

The subtitle says it all - Tldr; Yea 32, Nay 1 (Fenchak). My question is - if this new budget is actually making Penn State's deficit $280M, why was there only one Nay? Did the other 5 alumni trustees sit there with their teeth in their mouths rubberstamping this POS?

Just to make sure this is clear:

Last year's (2021-22 Fiscal Year) Operating Budget Deficit, once all the numbers came in, was roughly $120 Million (earlier estimates, that I believe had been released through different sources, were incorrect. But that is another issue).

This year's PROPOSED (and now Approved) Operating Budget (2022-23 Fiscal Year) carries a $160 Million deficit (it is reported as $140 Million, but that is only after taking the ~$20 million expense for fund-raising, and moving the expense - beginning this year - from the Operating Budget, and over to the Endowment Budget, for lack of a better term)

So, on an apples-to-apples basis the operating budget deficit is INCREASING by 33%.
This while the biggest revenue source of the Operating Budget, "Tuition", was increased to the tune of roughly $130 Million - largely due to the recent tuition cost increases - and while the expenditures for "Instruction" and "Research" remained essentially flat (combined were up approximately $12 Million, or about 1.5%).

I voted against the budget proposal. largely for the reasons listed above.

 

[StamfordBridgeVikingatLeftOffensiveTackle]

Just to make sure this is clear:

Last year's (2021-22 Fiscal Year) Operating Budget Deficit, once all the numbers came in, was roughly $120 Million (earlier estimates, that I believe had been released through different sources, were incorrect. But that is another issue).

This year's PROPOSED (and now Approved) Operating Budget (2022-23 Fiscal Year) carries a $160 Million deficit (it is reported as $140 Million, but that is only after taking the ~$20 million expense for fund-raising, and moving the expense - beginning this year - from the Operating Budget, and over to the Endowment Budget, for lack of a better term)

So, on an apples-to-apples basis the operating budget deficit is INCREASING by 33%.
This while the biggest revenue source of the Operating Budget, "Tuition", was increased to the tune of roughly $130 Million - largely due to the recent tuition cost increases - and while the expenditures for "Instruction" and "Research" remained essentially flat (combined were up approximately $12 Million, or about 1.5%).

I voted against the budget proposal. largely for the reasons listed above.

So is the clock running on the 5-year plan to balance the budget, or does that start with the next operating budget?

 

[PSU12046]

Unbelievable. So they operate at a $120m deficit last year and are forecasting to better that by 33% this year and that’s acceptable? It is a bunch of chimps running the place. WTF is going on here?

 

[PSU12046]

Fenchak's write up of the BOT meeting: https://barryfenchak.substack.com/p/my-public-comments-from-the-penn

The subtitle says it all - Tldr; Yea 32, Nay 1 (Fenchak). My question is - if this new budget is actually making Penn State's deficit $280M, why was there only one Nay? Did the other 5 alumni trustees sit there with their teeth in their mouths rubberstamping this POS?

That's not only their teeth in their mouths, it's their thumbs in their mouths. Thanks Barry, but seriously you shouldn't be THE only reasonable vote.

 

[BobPSU92]

So is the clock running on the 5-year plan to balance the budget, or does that start with the next operating budget?

 

[GrimReaper]

So is the clock running on the 5-year plan to balance the budget, or does that start with the next operating budget?

Next year, when the leadership can blame the increasing deficit on the legislature for not giving it the major increase in appropriation that PSU requested.

 

[91Joe95]

Just to make sure this is clear:

Last year's (2021-22 Fiscal Year) Operating Budget Deficit, once all the numbers came in, was roughly $120 Million (earlier estimates, that I believe had been released through different sources, were incorrect. But that is another issue).

This year's PROPOSED (and now Approved) Operating Budget (2022-23 Fiscal Year) carries a $160 Million deficit (it is reported as $140 Million, but that is only after taking the ~$20 million expense for fund-raising, and moving the expense - beginning this year - from the Operating Budget, and over to the Endowment Budget, for lack of a better term)

So, on an apples-to-apples basis the operating budget deficit is INCREASING by 33%.
This while the biggest revenue source of the Operating Budget, "Tuition", was increased to the tune of roughly $130 Million - largely due to the recent tuition cost increases - and while the expenditures for "Instruction" and "Research" remained essentially flat (combined were up approximately $12 Million, or about 1.5%).

I voted against the budget proposal. largely for the reasons listed above.

Are they incurring charges this year instead of future years to make it look like more progress is being made in future years, or is the majority of this considered structural and reoccurring? Why is the university obsessed with purchasing property when they can't afford to maintain what they have?

 

[TiogaLion]

Barry, I don't want to put you on the spot, but is there any public information on Cash Flow? We know the profit and loss statement is in the red, but how is cash flow? In general, I always knew that if I had positive cash flow I could fight my way out of most any profit situation.

I would love to see a simple cash flow statement showing Operating Revenue, with a detail list by source of revenue and Operating Expense with a detailed list by source of expenses. Without the detailed list the statement would be worthless, unless of course you trusted the source.

I suspect the University is in big financial trouble but this document would tell me how big the trouble is and how drastic the changes need to be to right the ship.

I could be all wet and we have a nice positive cash flow which will allow them to develop "some" plan (5 years?) to right the ship.

 

[PSUFTG]

Barry, I don't want to put you on the spot, but is there any public information on Cash Flow? We know the profit and loss statement is in the red, but how is cash flow? In general, I always knew that if I had positive cash flow I could fight my way out of most any profit situation.

I would love to see a simple cash flow statement showing Operating Revenue, with a detail list by source of revenue and Operating Expense with a detailed list by source of expenses. Without the detailed list the statement would be worthless, unless of course you trusted the source.

I suspect the University is in big financial trouble but this document would tell me how big the trouble is and how drastic the changes need to be to right the ship.

I could be all wet and we have a nice positive cash flow which will allow them to develop "some" plan (5 years?) to right the ship.

Good questions.

As I expect you know, there are several variations of "Cash Flow" - including that from Operations, as well as cash flows affected by Investing and Financing activities (largely CapX projects, Borrowing, etc) - all of which are important in different ways.
I am not sure if those figures are publicly available for the most recent fiscal year (2021-22) or for the current year's projections (2022-23).... I will check.
If they are, I will try to address those questions as best I can.