Volume 3 of Pennsylvania House Speaker John Perzel's series of essays on the future of education in the Commonwealth of Pennsylvania was published in winter 2005 and examines the issue of access. It includes an essay by Saint Joseph's president Timothy R. Lannon, S.J., entitled "We Are a Pennsylvania University and We Authorize This Message," reprinted below.
SAINT JOSEPH'S UNIVERSITY
WE ARE A PENNSYLVANIA UNIVERSITY AND WE AUTHORIZE THIS MESSAGE
TIMOTHY R. LANNON, S.J.
Citizens across America recently went to the polls and voted for candidates who campaigned with advertisements that all contained the phrase, “I authorized this message.” In healthily contested and freely held elections, the American electorate measured the words and deeds of aspiring public servants before lending support to those felt to have the best -- and not merely the easiest -- ideas. With that approval, our elected officials received the authority to lead us until the next election, when we must decide, all over again, to whom to extend our trust.
In many ways, American colleges and universities – and certainly those in Pennsylvania -- are quite like candidates for public office. Our institutions of higher learning stand in full review every autumn before prospective students and their families. Their decisions on whether or not to pursue college cast a very real vote regarding the quality of our education product and, especially, the cost of that opportunity. In effect, American colleges and universities run for election every year and, some may argue, every single semester.
The good news is that our colleges and universities are succeeding in earning the trust and confidence of the American public. Enrollments continue to grow. Retention and graduation rates are increasing. We are the envy of the world and attract students from around the globe. The recognized value of an education at colleges and universities in this state and beyond has never been higher.
At the same time, there is an increasingly real concern about the growing cost of a college education. Some cast a questioning eye at expenses. Others express criticism at labor costs and seemingly inflated services. A few legislators at the national level have even suggested a need for price controls or, at the very least, the imposition of penalties and limits associated with federal financial support.
This scrutiny, while not unwelcome, does not accurately reflect the daily reality for most university presidents and administrators. We are all striving to manage notably large operations by containing costs and increasing the value of services provided. Many of us are disbelieving of suggestions that colleges are engaged in unrestrained price increases, and others believe we are the first line of defense against externally rising costs.
In order to attract, retain and graduate students, colleges must respond to the demands of the consumer. While it is certain that everyone wants costs to remain low, it also remains true that students and their families come to the process of selecting a university with undeniably broad expectations. In addition to providing quality academic and athletic programs and maintaining an attractive campus, our schools are now expected to make available a vast and often expensive array of factors associated with housing, student activities, recreation, community service, counseling, health care, public safety, supported research, transportation, technology, telecommunications and more.
One such example is the cost of building and maintaining student residences. Colleges and universities know that increasing the number of students living in supervised housing greatly improves academic achievement. In addition, housing a larger percentage of students on campus increases the quality of life for neighborhoods and communities that live in proximity to and, hopefully, in partnership with nearby universities.
The challenge is to offer housing that students will want. The days of crowded dorms with a shower at the end of the hall and milk crates as desks and shelves are gone. In the case of Saint Joseph’s University and our new City Avenue Residence Halls, we understood the need to build suites with private bathrooms, spacious bedrooms and living areas, cable television, broadband Internet access, kitchenettes, common areas with recreation and exercise equipment, sufficient parking spaces, and 24-hour public safety and security. Despite the high demand for on-campus housing, had we built anything less, we would have been stuck with an empty building. That is the reality, and it makes for quite a challenge when managing costs.
Administrators also absorb the growing desire of government at all levels for colleges and universities to supplement municipal services and drive local economic development. Those public efforts are not without a significant price, which is heavily subsidized by private funds.
Many colleges and universities function in size and performance on a par with small towns. In the same way that municipal leaders rely upon increases in fixed property taxes to match the inflationary cost of providing public services, college administrators struggle to preserve endowments and constrain increases in tuition while managing the costs of their schools' multiple roles in the community.
To our credit and that of nearly every other college and university, we take a proactive approach to containing costs and even realizing savings. The external accreditation process closely examines our overall operation and rigorously challenges us to affirm our practices and procedures against our mission. We unfold our finances to a competent board of trustees and, perhaps more importantly, to public audits operating under the heightened attention and more stringent accounting rules adopted in the wake of national scandals in the for-profit sector.
In addition, a number of colleges and universities have adopted a program of review similar to Saint Joseph's Committee for Optimizing Resources and Expenses (CFOR). Under the leadership of our vice president for financial affairs and consisting of students, staff, faculty and administrators, CFOR regularly reviews contracts and procedures across the university and subjects them to rigorous scrutiny in an effort to identify and realize greater efficiencies. Not only has the effort resulted in considerable savings, but it has also fostered a more frugal approach to our patterns of conducting business.
Yet the public debate over tuition costs will continue, and it should. We invite both the concerns and the awareness that come with understanding the challenge of paying for excellence. Despite our positive differences from campus to campus, all college and universities have an important, common story to tell. As such, it is imperative that we “authorize this message”:
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For the majority of students, increases in tuition and fees are more than offset by increased student aid. College Board data show that the total available student aid in 2003-04 was about $122 billion -- a record amount that was 13 percent higher than the previous year (11 percent after adjusting for inflation). Grant aid grew by 8 percent.
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Most students pay far less than the "sticker price" after grant aid and tax benefits are included. Last year, the average student at a four-year private institution received about $9,400 in grant aid and education tax benefits. If the same student were to receive a similar amount of grant aid and tax benefits this year, the average net price would be about $10,700.
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Indeed, approximately 85% of Saint Joseph's students receive financial assistance in the form of scholarships grants, loans and work/study, and about 80 percent of all merit-based aid is actually meeting demonstrated financial need.
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In reporting on tuition figures, the news media typically use the Consumer Price Index (CPI) as the yardstick against which it compares the rate of tuition increase. But universities such as Saint Joseph's purchase a very different mix of products and services than households do, and many of these, such as health care, increase at rates well above the CPI.
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Colleges are increasingly challenged to provide cutting-edge facilities in preparing students for today's rapidly evolving workplace. Institutions now must replace and upgrade equipment with a frequency unimagined a decade ago, especially in science and technology fields, as well as in the campus telecommunications infrastructure. Also, students now expect a level of services, security and living accommodations that were not part of their parents' college experiences. One look at our City Avenue Residence Halls is testament to this.
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A new College Board report by a respected higher education economist shows that increases in educational attainment have a significant social return in decreased demands on public budgets, and through higher levels of education, individuals depend less on social safety net programs, display higher levels of civic participation and have higher educational expectations for their children.
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In spite of economic pressures, many colleges and universities have made powerful and creative institutional commitments to serving their communities -- partnering with local government to improve neighborhoods, providing service and expertise to area elementary and secondary schools, and offering free services to needy members of the community, for example. Saint Joseph’s partnership with the Philadelphia School District is just one example of such civic contribution.
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One of the noblest byproducts of the higher education enterprise is its pool of energetic and dedicated volunteers. In 1999-2000 (the most recent available data), it is estimated that 5.3 million college students performed 1.2 billion hours of community service -- and that statistic ignores the immense but unmeasured community service undertaken by members of the faculty, staff and administration on college campuses. Needless to say, Saint Joseph's contributes mightily in this area, as well.
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Private universities such as Saint Joseph's also save students money by helping them graduate in a timely manner. SJU has been cited by the Commonwealth of Pennsylvania for graduating a high percentage of its students within five years -- meaning fewer years of paying tuition and more years earning an income.
These are but a few of the main points to consider. And, although it would be foolish for any of us to ignore the concerns of families across the nation that are increasingly cautious about the cost and value of a college, it is important to realize that each incoming class of freshmen and transfer students delivers a critical vote of confidence regarding the value of education they choose. With more than 10 applicants for every seat in the freshman class, we recognize that the value of a Saint Joseph's education is higher than ever. Our success, however, depends heavily upon remaining accountable, accessible and affordable.
An honest examination of our efforts and a healthy debate about the cost and value of higher education in Pennsylvania are the best ways to ensure such success. After all, Saint Joseph’s University -- along with every college and university in America – will face a vote of confidence again next fall.
Our message must not only be authorized. Our message had better be good.