“Penn State moving to regional leadership model for Commonwealth Campuses”

[BobPSU92]

Participation in the University’s Voluntary Separation Incentive Program creates opportunity to streamline administrative leadership; Bendapudi commits up to $20M to ease deficit, provide extra time to fully balance the Commonwealth Campus budget

See the link below. From the article:

“UNIVERSITY PARK, Pa. — With the enrollment period closed for the University’s Voluntary Separation Incentive Program (VSIP), Penn State’s administration is moving forward with its transformation of operations for its Commonwealth Campuses, including a new shared regional administrative model that will create efficiencies across campuses and help reduce expenditures, optimized service teams and a one-time infusion of up to $20 million in additional funding.

Across Penn State’s Commonwealth Campuses, enrollments have declined in aggregate by about 24% over the last 10 years, with all but two campuses experiencing losses of between 16% and 50% over that same period. As the population of college-aged adults continues to decline, colleges and universities across the country are bracing for enrollment challenges to continue. Penn State’s thoughtful approach to these challenges is to avoid more draconian measures seen at other institutions across the country.

“Penn State has been making adjustments to address the reality of changing demographics in Pennsylvania and across the country, but these small changes are not enough to position the University for the long term," said Margo DelliCarpini, vice president for Commonwealth Campuses and executive chancellor. “We have to make fundamental changes that create the most efficient organization possible in delivering on Penn State’s mission.””

And,

”Due in part to declining enrollments, the overall budget for Penn State’s Commonwealth Campuses has a $49 million aggregate deficit. The University’s Board of Trustees has expressed the desire to see the institution’s overall budget deficit resolved by June 30, 2025. The Commonwealth Campus VSIP was launched as a tool to help reduce that deficit by incentivizing employees to depart Penn State to pursue other opportunities or retire.

In all, 383 employees, or about 21% of those who were eligible across the commonwealth, opted for the VSIP, resulting in an overall 10% reduction in personnel. About 77% of employees participating in the VSIP were staff. The dollar value of salary and fringe expense associated with these 383 employees is $43 million, however, actual savings will not be known until later in the year when University leaders know which positions will be backfilled.”

And,

”With several chancellors retiring, leaving the University for other positions or having opted in to the VSIP, Penn State has the opportunity to streamline its Commonwealth Campus leadership structure to reduce administrative overhead, leverage regional opportunities and provide enhanced collaboration across locations. This summer, working with campus leadership, DelliCarpini will implement the regional leadership model — specifically focused on the University College. The model will prioritize a robust Penn State experience for students and provide consistent administrative and support services that make the University’s teaching, research and service mission possible.”

https://www.psu.edu/news/story/penn-state-moving-regional-leadership-model-commonwealth-campuses/

At this rate, we could fail because we won’t be too big.

 

[GrimReaper]

So the solution to fix a money losing operation is to:

1. reorganize it;
2. throw another $20mm at it (by a University that is already running. a deficit on a consolidated basis)

Not only are they rearranging deck chairs on the Titanic, but the captain is moving further into the iceberg, full speed ahead.

 

[Midnighter]

Participation in the University’s Voluntary Separation Incentive Program creates opportunity to streamline administrative leadership; Bendapudi commits up to $20M to ease deficit, provide extra time to fully balance the Commonwealth Campus budget

See the link below. From the article:

“UNIVERSITY PARK, Pa. — With the enrollment period closed for the University’s Voluntary Separation Incentive Program (VSIP), Penn State’s administration is moving forward with its transformation of operations for its Commonwealth Campuses, including a new shared regional administrative model that will create efficiencies across campuses and help reduce expenditures, optimized service teams and a one-time infusion of up to $20 million in additional funding.

Across Penn State’s Commonwealth Campuses, enrollments have declined in aggregate by about 24% over the last 10 years, with all but two campuses experiencing losses of between 16% and 50% over that same period. As the population of college-aged adults continues to decline, colleges and universities across the country are bracing for enrollment challenges to continue. Penn State’s thoughtful approach to these challenges is to avoid more draconian measures seen at other institutions across the country.

“Penn State has been making adjustments to address the reality of changing demographics in Pennsylvania and across the country, but these small changes are not enough to position the University for the long term," said Margo DelliCarpini, vice president for Commonwealth Campuses and executive chancellor. “We have to make fundamental changes that create the most efficient organization possible in delivering on Penn State’s mission.””

And,

”Due in part to declining enrollments, the overall budget for Penn State’s Commonwealth Campuses has a $49 million aggregate deficit. The University’s Board of Trustees has expressed the desire to see the institution’s overall budget deficit resolved by June 30, 2025. The Commonwealth Campus VSIP was launched as a tool to help reduce that deficit by incentivizing employees to depart Penn State to pursue other opportunities or retire.

In all, 383 employees, or about 21% of those who were eligible across the commonwealth, opted for the VSIP, resulting in an overall 10% reduction in personnel. About 77% of employees participating in the VSIP were staff. The dollar value of salary and fringe expense associated with these 383 employees is $43 million, however, actual savings will not be known until later in the year when University leaders know which positions will be backfilled.”

And,

”With several chancellors retiring, leaving the University for other positions or having opted in to the VSIP, Penn State has the opportunity to streamline its Commonwealth Campus leadership structure to reduce administrative overhead, leverage regional opportunities and provide enhanced collaboration across locations. This summer, working with campus leadership, DelliCarpini will implement the regional leadership model — specifically focused on the University College. The model will prioritize a robust Penn State experience for students and provide consistent administrative and support services that make the University’s teaching, research and service mission possible.”

https://www.psu.edu/news/story/penn-state-moving-regional-leadership-model-commonwealth-campuses/

At this rate, we could fail because we won’t be too big.

The branch campuses were a great idea and novel way of bringing the Penn State educational experience to all parts of the commonwealth. But, the model is outdated and this seems like a step in the right direction. It's a pretty good deal tuition wise but kids are figuring out there are other paths to success with much less debt.

 

[BobPSU92]

So the solution to fix a money losing operation is to:

1. reorganize it;
2. throw another $20mm at it (by a University that is already running. a deficit on a consolidated basis)

Not only are they rearranging deck chairs on the Titanic, but the captain is moving further into the iceberg, full speed ahead.

Gotta spend money to save money. The money won’t save itself.

 

[Rick76]

The branch campuses were a great idea and novel way of bringing the Penn State educational experience to all parts of the commonwealth. But, the model is outdated and this seems like a step in the right direction. It's a pretty good deal tuition wise but kids are figuring out there are other paths to success with much less debt.

If you look at the Hazleton campus of PSU as an example, when it was started about 100 years ago, there was no other local college option for people in Hazleton. Then Wilkes and Kings opened up in Wilkes-Barre. Then the Luzerne County Community College opened up. Now Lackawanna College has a branch in Hazleton, Johnson College has a campus outside Hazleton, the Luzerne County Community College has a branch in Hazleton, McCann's School has expanded its curriculum to include tech, and students can take courses world wide on line. In short, there is more competition for a fairly stagnant student pool. In addition, some of the other options are cheaper than PSU.

Times change and PSU has to change to stay relevant.

 

[PSUFTG2]

If you look at the Hazleton campus of PSU as an example, when it was started about 100 years ago, there was no other local college option for people in Hazleton. Then Wilkes and Kings opened up in Wilkes-Barre. Then the Luzerne County Community College opened up. Now Lackawanna College has a branch in Hazleton, Johnson College has a campus outside Hazleton, the Luzerne County Community College has a branch in Hazleton, McCann's School has expanded its curriculum to include tech, and students can take courses world wide on line. In short, there is more competition for a fairly stagnant student pool. In addition, some of the other options are cheaper than PSU.

Times change and PSU has to change to stay relevant.

I think a lot of people would agree that there is plenty of opportunity for positive changes to the way PSU administers the CWC system.
Whether the recently enacted Voluntary Separation bit was a positive step is far more debatable.

 

[BobPSU92]

I think a lot of people would agree that there is plenty of opportunity for positive changes to the way PSU administers the CWC system.
Whether the recently enacted Voluntary Separation bit was a positive step is far more debatable.

Penn State University Corporation

 

[Thorndike2021]

AND!

All buffets to feature local delicacies. PSU Harrisburg = carp fresh from the Susquehanna, etc.

It's all about recruiting, people!

 

[BobPSU92]

AND!

All buffets to feature local delicacies. PSU Harrisburg = carp fresh from the Susquehanna, etc.

It's all about recruiting, people!

Berkey Creamery makes onion dip.

 

[GrimReaper]

Berkey Creamery makes onion dip.

View attachment 589611

Looks like there is something there for Molly, too.

 

[PSU Mike]

I wonder what the definition of staff is, cited in the VSIP stats. I had said on here when it was announced that the opt-in rate by employee category would speak to the expected marketability (i.e., market value) of each class. Many of those remaining are either overpaid or operate in a niche category.

 

[manatree]

AND!

All buffets to feature local delicacies. PSU Harrisburg = carp fresh from the Susquehanna, etc.

It's all about recruiting, people!

Three Mile-Eyed Carp

 

[Rick76]

Penn State University Corporation

PSU has to start operating more like a business and less like a governmental sacred cow in order to survive and thrive. I'm glad we brought in a business prof as our president. She has a lot of tough decisions to make.

In any corporation, the quickest way to cut costs is via reducing personnel costs. Nudging people out of the door who were thinking about packing it in anyway is a good start. That's an easy decision. Consolidating/eliminating programs is a tough decision, but it will probably have to be done. Terminating people is the toughest

Any job at any company, non-profit, NGO, government, etc isn't your job. The job belongs to the company, non-profit, NGO, government and you are in the position at the will of the owner. You are just passing through and really aren't entitled to the job. You have to earn the right to keep the job every day.

 

[PSUFTG2]

PSU has to start operating more like a business and less like a governmental sacred cow in order to survive and thrive. I'm glad we brought in a business prof as our president. She has a lot of tough decisions to make.

In any corporation, the quickest way to cut costs is via reducing personnel costs. Nudging people out of the door who were thinking about packing it in anyway is a good start. That's an easy decision. Consolidating/eliminating programs is a tough decision, but it will probably have to be done. Terminating people is the toughest

Any job at any company, non-profit, NGO, government, etc isn't your job. The job belongs to the company, non-profit, NGO, government and you are in the position at the will of the owner. You are just passing through and really aren't entitled to the job. You have to earn the right to keep the job every day.

That said, this current effort is probably the least "business-like" operation one could imagine.

 

[GrimReaper]

PSU has to start operating more like a business and less like a governmental sacred cow in order to survive and thrive. I'm glad we brought in a business prof as our president. She has a lot of tough decisions to make.

In any corporation, the quickest way to cut costs is via reducing personnel costs. Nudging people out of the door who were thinking about packing it in anyway is a good start. That's an easy decision. Consolidating/eliminating programs is a tough decision, but it will probably have to be done. Terminating people is the toughest

Any job at any company, non-profit, NGO, government, etc isn't your job. The job belongs to the company, non-profit, NGO, government and you are in the position at the will of the owner. You are just passing through and really aren't entitled to the job. You have to earn the right to keep the job every day.

Neels has been in the job for two years. The toughest decisions she's made is what to have for lunch.

 

[LBUfanatic]

Neels has been in the job for two years. The toughest decisions she's made is what to have for lunch.

The General Assembly is likely going to pass a performance based budget formula for the state -relateds, which PSU supports. Even if your statement is true, which it is not, she will undoubtedly be making difficult decisions going forward as PSU’s state funding will be at stake.

 

[leinbacker]

Penn State University Corporation

Wish whack
Pink black
P S C

 

[J.E.B]

Neels has been in the job for two years. The toughest decisions she's made is what to have for lunch.

Neeli seems to have disappeared ever since the university got shot down looking for more state $$$. Saw her on a zoom about stadium renovation and in person at the Palmer opening but otherwise she’s not been very visible and neither has her right hand man.

 

[Keyser Soze 16802]

Neeli seems to have disappeared ever since the university got shot down looking for more state $$$. Saw her on a zoom about stadium renovation and in person at the Palmer opening but otherwise she’s not been very visible and neither has her right hand man.

"Give us more money but don't expect us to be transparent about how we spend your money"

I'm *shocked* this never works for PSU

 

[LBUfanatic]

"Give us more money but don't expect us to be transparent about how we spend your money"

I'm *shocked* this never works for PSU

See my post above. Neeli and PSU support a performance-based funding model, which, by its very nature, is rooted in transparency.

 

[PSU Mike]

See my post above. Neeli and PSU support a performance-based funding model, which, by its very nature, is rooted in transparency.

Get the money first. Worry about hitting goals second.

 

[LBUfanatic]

Get the money first. Worry about hitting goals second.

The General Assembly balked at that strategy, which is why they are requiring the move to performance based.

 

[Keyser Soze 16802]

See my post above. Neeli and PSU support a performance-based funding model, which, by its very nature, is rooted in transparency.

C'mon, respectfully, PSU's top administration has resisted transparency tooth and nail for a long long time. Anyone who has paid attention knows that to be true. If you want to be an apologist for them, you'll need to do better than that. Prez Neeli could open the books today and show the world how responsible PSU s being with monies received.

 

[PSUFTG2]

"Performance Based" is - in and of itself - nothing but a buzzword.

It goes over well because, lets be honest, we all want to think that paying for performance is a good thing. That said, as to Higher Education, how do you determine what "performance" is? That is the real question that must be addressed up front.
It is not hard to look at any PBF metric and see how it can easily be manipulated for both better or worse.

There is a long litany of states trying to implement various forms of "performance based" funding - and every one is different. Largely the differences tend to be based on the current political winds (in recent years, for instance, a whole lot of URM/DEI type parameters. Five years from now, in all likelihood that will be a distant memory - taken over by whatever political/attract-the-voters issue is ruling the day)

There are, certainly, examples where "performance based" has had (IMO) positive impact - but a lot of research has been done, with the consensus being that the impact is negligible (if positive at all).
Putting a market-tested buzzword attached to the legislation doesn't mean a thing.
Done right? Yeah!
Done poorly? Ugh!
What would we most likely see from Harrisburg? IDK

No one - including the folks down in Harrisburg - have any idea what they may, or may not, come up with regarding PBF metrics / How money will be allocated / or anything at all about how things may, or may not, change.
One thing that is pretty certain, based on both common sense and history throughout the nation, once those metrics are set each school will do everything they can to "shine" in those metrics (in order to get more money). Whether that will be good or bad, who it may be good or bad for, whether there is a positive or negative impact? All of that will be determined by the prescience of those who set those parameters (of course, once set, one can also feel pretty confident that they will change as the political winds adjust over time).


Data Dowload on PBF: SHEEO_SHEF_FY23_PBF_Data.xlsx (live.com)
A "pro" performance-based article: Performance-Based Funding of Higher Education - Center for American Progress

 

[LBUfanatic]

C'mon, respectfully, PSU's top administration has resisted transparency tooth and nail for a long long time. Anyone who has paid attention knows that to be true. If you want to be an apologist for them, you'll need to do better than that. Prez Neeli could open the books today and show the world how responsible PSU s being with monies received.

Not an apologist at all, especially given that I currently have 2 kids at PSU and another who graduated last year. I’m just stating the fact that PSU is agreeing to a model which promotes transparency. Maybe a step in the right direction.

 

[LBUfanatic]

"Performance Based" is - in and of itself - nothing but a buzzword.

It goes over well because, lets be honest, we all want to think that paying for performance is a good thing. That said, as to Higher Education, how do you determine what "performance" is? That is the real question that must be addressed up front.
It is not hard to look at any PBF metric and see how it can easily be manipulated for both better or worse.

There is a long litany of states trying to implement various forms of "performance based" funding - and every one is different. Largely the differences tend to be based on the current political winds (in recent years, for instance, a whole lot of URM/DEI type parameters. Five years from now, in all likelihood that will be a distant memory - taken over by whatever political/attract-the-voters issue is ruling the day)

There are, certainly, examples where "performance based" has had (IMO) positive impact - but a lot of research has been done, with the consensus being that the impact is negligible (if positive at all).
Putting a market-tested buzzword attached to the legislation doesn't mean a thing.
Done right? Yeah!
Done poorly? Ugh!
What would we most likely see from Harrisburg? IDK

Data Dowload on PBF: SHEEO_SHEF_FY23_PBF_Data.xlsx (live.com)
A "pro" performance-based article: Performance-Based Funding of Higher Education - Center for American Progress

The model being debated in Harrisburg ties metrics to how well the state-relateds do in majors which will produce graduates to support Pennsylvania’s workforce needs. It is a concerted effort to get graduates to stay in Pennsylvania to try to help reverse the ever-aging population. Will it work? That remains to be seen. However, it does require PSU to be more nimble, responsibe and transparent, which is the exact thing you and others in this thread are complaining that PSU is not. It’s a much-needed change which should at least be viewed with some degree of optimism. And, as it relates to current issues of transparency, I often wonder how much latitude the Board gives PSU’s Administration to disclose important metrics, most especially spending.

 

[GrimReaper]

Not an apologist at all, especially given that I currently have 2 kids at PSU and another who graduated last year. I’m just stating the fact that PSU is agreeing to a model which promotes transparency. Maybe a step in the right direction.

Transparency is a good thing. What was the last report on progress to eliminate the operating budget deficit?

 

[LBUfanatic]

Transparency is a good thing. What was the last report on progress to eliminate the operating budget deficit?

No clue. Which is why I stated that I support more transparency.

 

[GrimReaper]

No clue. Which is why I stated that I support more transparency.

But does Neels, at least on the important stuff?

 

[LBUfanatic]

But does Neels, at least on the important stuff?

Again, I can’t control what she does so if an outside entity, i.e. the General Assembly, forces more transparency from PSU it’s a good thing. And, as I asked in an earlier response, how much latitude does Neeli have from the Board to disclose the “important stuff?”

 

[EricStratton-RushChairman]

The branch campuses were a great idea and novel way of bringing the Penn State educational experience to all parts of the commonwealth. But, the model is outdated and this seems like a step in the right direction. It's a pretty good deal tuition wise but kids are figuring out there are other paths to success with much less debt.

Dr. Eric Walker's original plan was to push all undergraduate education to the branch campuses and leave Main Campus only for graduate and research. He kind of looked down his nose at undergraduate education.

 

[GrimReaper]

Again, I can’t control what she does so if an outside entity, i.e. the General Assembly, forces more transparency from PSU it’s a good thing. And, as I asked in an earlier response, how much latitude does Neeli have from the Board to disclose the “important stuff?”

I've not seen anything in the documents defining BoT powers and responsibilities that require it's approval of release of such information. It's possible that certain members of the Board made it a condition of her hiring that she clear such information with them before it's made public. Says a lot about her if she agreed to such a proviso.

 

[Keyser Soze 16802]

I've not seen anything in the documents defining BoT powers and responsibilities that require it's approval of release of such information. It's possible that certain members of the Board made it a condition of her hiring that she clear such information with them before it's made public. Says a lot about her if she agreed to such a proviso.

If she wants one of those cushy 7 figure "consulting" contracts when she's done as prez, she'll do their bidding without hesitation

 

[GrimReaper]

If she wants one of those cushy 7 figure "consulting" contracts when she's done as prez, she'll do their bidding without hesitation

Can't think of a good reason why the BOT would prevent the Administration from providing updates on the financial situation unless they are making little to no progress or moving in the wrong direction.

The result of the VSIP initiative was predictable, though I'm not sure they had a better alternative.

 

[PSUSignore]

C'mon, respectfully, PSU's top administration has resisted transparency tooth and nail for a long long time. Anyone who has paid attention knows that to be true. If you want to be an apologist for them, you'll need to do better than that. Prez Neeli could open the books today and show the world how responsible PSU s being with monies received.

Even the almighty Paterno famously said he wanted your money and not your 2 cents. This is nothing new, but I doubt people that are critical of it now were critical of Paterno for the same philosophy.

 

[GrimReaper]

Even the almighty Paterno famously said he wanted your money and not your 2 cents. This is nothing new, but I doubt people that are critical of it now were critical of Paterno for the same philosophy.

Don't think that Joe would have used that approach, even back then, when appealing for a nine-figure appropriation from the legislature. Context is important.

 

[PSUFTG2]

Even the almighty Paterno famously said he wanted your money and not your 2 cents. This is nothing new, but I doubt people that are critical of it now were critical of Paterno for the same philosophy.

FWIW: The context there was persuading folks to make philanthropic donations.

 

[Keyser Soze 16802]

Even the almighty Paterno famously said he wanted your money and not your 2 cents. This is nothing new, but I doubt people that are critical of it now were critical of Paterno for the same philosophy.

 

[pamdlion]

Cut the fat. Don’t need a president and 4 dozen deans on every campus.

 

[SleepyLion]

FWIW: The context there was persuading folks to make philanthropic donations.

One would think it would be easier to persuade folks to give away other people's money.