Shocking (not):

[PSUFTG]

Remember when Neeli and the Board told us they solved the $100 million per year systemic budget deficit? Just two years ago?
And remember who told you back then that it was all ********, smoke-and-mirrors, and whack-a-mole hocus pocus?

Lol.

So now we have an even LARGER annual deficit than we had in 2022.
And in addition to the current $124 Million deficit, we are looking at $300 million deficit projections by 2030.

Buckle up!

They are already taxing the endowment for operating expenses - something they insisted for years that they COULD NOT do (and didn't want anyone to know about).
The level of incompetence is only surpassed by the level of disingenuousness.

University taking proactive steps to address projected budget shortfall | Penn State University

 

[Penn State Pigskin 2025]

Barron and his crew of reckless spending really set this economic house on fire.

Apparently the fire is now at nine alarms.

 

[BobPSU92]

budget shortfall


LOOK OVER THERE! BEAVER STADIUM RENOVATION!!!

 

[Penn State Pigskin 2025]

budget shortfall


LOOK OVER THERE! BEAVER STADIUM RENOVATION!!!

Separate pots of money and the football program funds all of the Olympic programs. Barron set the record for most fiscally irresponsible he also was less interested in cementing political contacts in Harrisburg that would have helped the university. A former state senator friend of mine said that Barron was an arrogant man.

 

[BobPSU92]

Separate pots of money and the football program funds all of the Olympic programs. Barron set the record for most fiscally irresponsible he also was less interested in cementing political contacts in Harrisburg that would have helped the university. A former state senator friend of mine said that Barron was an arrogant man.

I realize that. Just some humor, though PSU will naturally make much of the stadium renovation while making little of the budget shortfall.

 

[Penn State Pigskin 2025]

I realize that. Just some humor, though PSU will naturally make much of the stadium renovation while making little of the budget shortfall.

That logic makes zero sense.

 

[BobPSU92]

That logic makes zero sense.

That’s what I was going for.

 

[PSUFTG]

Separate pots of money [ Uh, not really But I am certainly no longer interested in where that discussion goes on this board]
and the football program funds all of the Olympic programs [Fair enough to say].
Barron set the record for most fiscally irresponsible [Not an unfair statement, but he got a LOT of help from the incompetent, disengaged, and/or self-interested members of the Board of Trustees - and that continues uninterrupted to this day. And Neeli - and her Court - particularly Sarah Thordike the "VP of finance - are certainly no better] he also was less interested in cementing political contacts in Harrisburg that would have helped the university. A former state senator friend of mine said that Barron was an arrogant man [LOL That certainly wouldn't require any high level of discernment to realize].

Largely accurate, IMO. With some caveats.

"Separate pots of money [ Uh, not really But I am certainly no longer interested in where that discussion goes on this board]
and the football program funds all of the Olympic programs [Fair enough to say].
Barron set the record for most fiscally irresponsible [Not an unfair statement, but he got a LOT of help from the incompetent, disengaged, and/or self-interested members of the Board of Trustees - and that continues uninterrupted to this day. And Neeli - and her Court - particularly Sarah Thordike the "VP of finance - are certainly no better] he also was less interested in cementing political contacts in Harrisburg that would have helped the university. A former state senator friend of mine said that Barron was an arrogant man [LOL That certainly wouldn't require any high level of discernment to realize].

 

[Penn State Pigskin 2025]

That’s what I was going for.

Your logic make sense if you expect PS to have football program that will compete in CFP.
I’m not going to belabor my dialogue with as I have work to do. Have a good day.

 

[BobPSU92]

I was ”thinking”. It’s always been emphasized that the PSU athletic department funds itself (or borrows). The university does not fund athletics. That’s great. Imagine a world where an academic department had to cut back because its funds were diverted to football. The degree of would be severe. However, has it ever been said that the athletic department can’t fund academics?

I know.

 

[bdgan]

Imagine a world where an academic department had to cut back because its funds were diverted to football.

That world exists and has existed for some time.

Across DI colleges, 94 percent of athletics programs, including 49 of the 69 Power colleges, spent more than they generated in revenue in the 2023–24 academic year. The median college reported a gap of $20.6 million. This gap was larger than the median a decade earlier ($12.3 million). Over this period, spending increased more than generated revenue in all DI subdivisions.

I'm not sure if academic departments were cut back. More likely students paid an "activities fee" in addition to tuition.

 

[Roar814]

Alright I am way more ignorant on PSU's financial situation than I'd like to be. What are some legitimate ways this can be solved?

 

[BobPSU92]

Alright I am way more ignorant on PSU's financial situation than I'd like to be. What are some legitimate ways this can be solved?

 

[Midnighter]

Remember when Neeli and the Board told us they solved the $100 million per year systemic budget deficit? Just two years ago?
And remember who told you back then that it was all ********, smoke-and-mirrors, and whack-a-mole hocus pocus?

Lol.

So now we have an even LARGER annual deficit than we had in 2022.
And in addition to the current $124 Million deficit, we are looking at $300 million deficit projections by 2030.

Buckle up!

They are already taxing the endowment for operating expenses - something they insisted for years that they COULD NOT do (and didn't want anyone to know about).
The level of incompetence is only surpassed by the level of disingenuousness.

University taking proactive steps to address projected budget shortfall | Penn State University

First of all, this is some S Tier academic administration bullsh*t:

Penn State is taking proactive steps to address an expected shortfall of $124 million in its $2.2 billion Education and General (E&G) budget for FY 2026-27. University leaders are implementing a series of targeted financial actions to align resources with current realities, while protecting core research, academic and student success priorities.

Second, how big of a hit is international student enrollment to this deficit? They mention it right away, so my guess is not very. Assume they could simply admit qualified out of state applicants given the sheer number of applicants they have.

As an aside, 43,000+ enrollment at UP? Jesus. Hard pass.

 

[ChiTownLionPSU]

Alright I am way more ignorant on PSU's financial situation than I'd like to be. What are some legitimate ways this can be solved?

Time for another tuition bump!

$124,000,000 / 43,000 students = $4,651 per student.

Presto, problem solved.

 

[PSUFTG]

First of all, this is some S Tier academic administration bullsh*t:

Penn State is taking proactive steps to address an expected shortfall of $124 million in its $2.2 billion Education and General (E&G) budget for FY 2026-27. University leaders are implementing a series of targeted financial actions to align resources with current realities, while protecting core research, academic and student success priorities.

Second, how big of a hit is international student enrollment to this deficit? They mention it right away, so my guess is not very. Assume they could simply admit qualified out of state applicants given the sheer number of applicants they have.

As an aside, 43,000+ enrollment at UP? Jesus. Hard pass.

FAIAP, revenue from an OOS student is essentially equal to revenue from International student - so the answer to your question is
1) "not much" if they simply dig deeper into OOS pool to fill that seat

2) even less "not much" due to the fact that bringing in more from other regions (India) has pretty much replaced the loss of Chinese students (which had become the far largest chunk of International)

3) The PROBLEM is that they have already been pretty much scraping bottom on the OOS pool - because the yield there is RIDICULOUSLY low (for numerous reasons that have been discussed - largely by me - for years now)

That is a HUGE problem. HUGE!!

So they are pretty much out of "target market" to maintain that OOS tuition revenue they have become addicted to.
(and have already had to play the "discount shell game" in the OOS market). So that is a nearly certain **** show in the making as we move forward (and probably a big factor in why the projected deficits over the next few years are twice as bad as the situation this year)

 

[Chumboshifko1]

Neeli is no better than her masters.

 

[Nittering Nabob]

Time for another tuition bump!

$124,000,000 / 43,000 students = $4,651 per student.

Presto, problem solved.

I get $2,884 per student which they will probably allocate as $2,000/per in-state student and $4,000 per out-of state student.

 

[laKavosiey-st lion]

Barron and his crew of reckless spending really set this economic house on fire.

Apparently the fire is now at nine alarms.
View attachment 1524626

that fire is blue

 

[Ghost of OM]

Alright I am way more ignorant on PSU's financial situation than I'd like to be. What are some legitimate ways this can be solved?

The situation is that General Funds only have three sources of income - 1. Tuition, 2. Appropriation and 3. Other which is the smallest of the three slice pie consisting of short-term investment income, indirect cost recovery from sponsored grants and a tax that is applied to auxiliary services revenue (housing & foods, athletics and other smaller pots). It’s really hard to increase revenues to erase a deficit that size.

The other option is cutting expenses/programs. I hate seeing the campuses close and don’t think that will really help much in the long run. No one wants to see majors eliminated or academic colleges closed or combined but it may come to that. Every college has multiple Deans at various levels all making mid 6 figures. Every academic area has communication specialists, IT specialists, DEI staff and programs. Central Administration has ballooned in recent years. The President and Provosts offices have added a ton of very highly paid staff. But, even carving away some of that doesn’t touch a $300 million hole.

I’m glad it isn’t my problem anymore.

 

[Bwifan]

Time for another tuition bump!

$124,000,000 / 43,000 students = $4,651 per student.

Presto, problem solved.

It just staggers me anymore how expensive PSU has gotten even for in state residents. I look at what in state residents to go to college for down here at any of the state universities in Florida, so much cheaper it just makes me shake my head to how bad PSU has been managed over the last 20 years plus

 

[bdgan]

The situation is that General Funds only have three sources of income - 1. Tuition, 2. Appropriation and 3. Other which is the smallest of the three slice pie consisting of short-term investment income, indirect cost recovery from sponsored grants and a tax that is applied to auxiliary services revenue (housing & foods, athletics and other smaller pots). It’s really hard to increase revenues to erase a deficit that size.

The other option is cutting expenses/programs. I hate seeing the campuses close and don’t think that will really help much in the long run. No one wants to see majors eliminated or academic colleges closed or combined but it may come to that. Every college has multiple Deans at various levels all making mid 6 figures. Every academic area has communication specialists, IT specialists, DEI staff and programs. Central Administration has ballooned in recent years. The President and Provosts offices have added a ton of very highly paid staff. But, even carving away some of that doesn’t touch a $300 million hole.

I’m glad it isn’t my problem anymore.

I'd love to see majors eliminated (those that will never produce an income adequate to repay student loans)

 

[Ghost of OM]

It just staggers me anymore how expensive PSU has gotten even for in state residents. I look at what in state residents to go to college for down here at any of the state universities in Florida, so much cheaper it just makes me shake my head to how bad PSU has been managed over the last 20 years plus

Florida also provides almost double the state support per student as PA does. I’m not defending the way PSU has been managed, you just need to recognize how little PA values higher ed.

Pitt receives $5,971 per student in state appropriation, Temple $5,263. Penn State = $2,802. PSU would be much better off financially if we were supported like the other two “State Related” schools are on a per student basis.

 

[Nittering Nabob]

I'd love to see majors eliminated (those that will never produce an income adequate to repay student loans)

They just eliminated about 50 majors. They need to keep hacking away at majors and overpaid department personnel.

I could get PSU in sounder, cash flow positive financial status in one week.

 

[Bwifan]

Florida also provides almost double the state support per student as PA does. I’m not defending the way PSU has been managed, you just need to recognize how little PA values higher ed.

Pitt receives $5,971 per student in state appropriation, Temple $5,263. Penn State = $2,802. PSU would be much better off financially if we were supported like the other two “State Related” schools are on a per student basis.

Florida also runs in the black and can afford to do that, unlike the debt PA is carrying and only getting worse. Why FL also just put a massive reduction in my property taxes because they can afford to do so.

 

[Ghost of OM]

Florida also runs in the black and can afford to do that, unlike the debt PA is carrying and only getting worse. Why FL also just put a massive reduction in my property taxes because they can afford to do so.

Oh you are absolutely right there. FL is so much better managed than PA. However, my point is not wrong. That is mostly why the FL in-state tuition is so much lower than PA - Florida supports their higher ed institutions much better than PA does. In fact, most states do. PA has ranked near the bottom in support for higher ed for years.

 

[Zenophile]

Florida also provides almost double the state support per student as PA does. I’m not defending the way PSU has been managed, you just need to recognize how little PA values higher ed.

Pitt receives $5,971 per student in state appropriation, Temple $5,263. Penn State = $2,802. PSU would be much better off financially if we were supported like the other two “State Related” schools are on a per student basis.

I seem to recall that there were certain B&I trustees in the 2012-15 year timeframe who didn’t much care for the commonwealth attempting to interfere in their matters, so they threatened to make Penn State “more private.”

Did those trustees succeed, or is this per student disparity due to something else?

 

[Ghost of OM]

I seem to recall that there were certain B&I trustees in the 2012-15 year timeframe who didn’t much care for the commonwealth attempting to interfere in their matters, so they threatened to make Penn State “more private.”

Did those trustees succeed, or is this per student disparity due to something else?

You recall correctly. I don’t think that was a totally serious threat but sometime in that range of years, the Governor’s initial budget release recommended huge cuts to all the State Relateds appropriations. Cuts so severe, if enacted, would have essentially made PSU a private university. In fact, some private universities around the country would have had higher appropriations than PSU.

The disparity in appropriation per student dates back to when Pitt and Temple were brought into the fold as State Related. I believe at that time someone did a per student support calculation for Penn State and the legislature agreed to give roughly the same amount to the other two. After that, our enrollment exploded but the appropriation amount was never again adjusted per student. Basically now everyone gets an X percent increase or decrease annually and, as a result, our enrollment growth has eroded our per student appropriation amount.

TMI? You asked.

 

[Midnighter]

Oh you are absolutely right there. FL is so much better managed than PA. However, my point is not wrong. That is mostly why the FL in-state tuition is so much lower than PA - Florida supports their higher ed institutions much better than PA does. In fact, most states do. PA has ranked near the bottom in support for higher ed for years.

Easier to be better managed when you have some of the best, most desirable beaches and weather in the world.

 

[baltimorened]

You recall correctly. I don’t think that was a totally serious threat but sometime in that range of years, the Governor’s initial budget release recommended huge cuts to all the State Relateds appropriations. Cuts so severe, if enacted, would have essentially made PSU a private university. In fact, some private universities around the country would have had higher appropriations than PSU.

The disparity in appropriation per student dates back to when Pitt and Temple were brought into the fold as State Related. I believe at that time someone did a per student support calculation for Penn State and the legislature agreed to give roughly the same amount to the other two. After that, our enrollment exploded but the appropriation amount was never again adjusted per student. Basically now everyone gets an X percent increase or decrease annually and, as a result, our enrollment growth has eroded our per student appropriation amount.

TMI? You asked.

well, no matter the reason, at some point income has to be equal or greater than expenses...lots of folks believe that Penn state is already at the tipping point for tuition...so therefore the reason to cut expenses...typically the fastest, easiest way to cut expenses is headcount...

 

[baltimorened]

Easier to be better managed when you have some of the best, most desirable beaches and weather in the world.

don't forget, Disney universal, sea world and all the other attractions around the state...tourist dollars seem to fund just about everything

 

[Zenophile]

You recall correctly. I don’t think that was a totally serious threat but sometime in that range of years, the Governor’s initial budget release recommended huge cuts to all the State Relateds appropriations. Cuts so severe, if enacted, would have essentially made PSU a private university. In fact, some private universities around the country would have had higher appropriations than PSU.

The disparity in appropriation per student dates back to when Pitt and Temple were brought into the fold as State Related. I believe at that time someone did a per student support calculation for Penn State and the legislature agreed to give roughly the same amount to the other two. After that, our enrollment exploded but the appropriation amount was never again adjusted per student. Basically now everyone gets an X percent increase or decrease annually and, as a result, our enrollment growth has eroded our per student appropriation amount.

TMI? You asked.

Never TMI. Thank you.

 

[Ghost of OM]

don't forget, Disney universal, sea world and all the other attractions around the state...tourist dollars seem to fund just about everything

You saying Hershey Park and Knobels aren’t the same?

 

[Midnighter]

don't forget, Disney universal, sea world and all the other attractions around the state...tourist dollars seem to fund just about everything

Yeah, exactly. But, I asked ChatGPT to detail the economic impact of Disney in Florida and it’s basically a third of the tourism industry (over $40bn). I asked for a similar single entity comparison in PA, and even though not on the same scale, know what the answer was? I bet you do .

 

[Ghost of OM]

Yeah, exactly. But, I asked ChatGPT to detail the economic impact of Disney in Florida and it’s basically a third of the tourism industry (over $40bn). I asked for a similar single entity comparison in PA, and even though not on the same scale, know what the answer was? I bet you do .

We Are!

 

[UncleRoyBiggins]

Neeli's got this.