The State System’s FY 2022-23 appropriation request of $550 million and at least $201 million in direct funds to students will have measurable benefits including:.State support is crucial if the State System is to recapture its affordability advantage and bring down costs for State System students.State investment can reduce the share of low and middle-income students’ cost of a State System education an additional $1,000 per student increases retention by 3-4% and also supports increased recruitment and graduation.A student’s share of cost may continue to rise substantially absent significant recurring state investment.Although Pennsylvania has increased funding for public education in recent years, and federal relief funding has been helpful, the State System’s current state funding, when adjusted for inflation, is only between FY 2010-11 and FY 2011-12 levels.The proportion of enrolled students from lower- and middle-income families has declined from 80% in 2011 to 70% in 2019.For low- and middle-income families (income less than $110,000), almost 40 cents of every dollar earned goes to paying for a State System education, compared to just 20 cents of every dollar for high-income families.The proportion of education costs paid by students at 4-year public institutions in Pennsylvania was 71.9% in 2020, ranking Pennsylvania as the 11th highest in the country for percentage of costs borne by students.Over the last decade, the average price students pay to attend a State System university has increased by 33%.Here’s how much and why costs have increased: Unfortunately, a State System education is drifting beyond the reach of the students we were born to serve. The State System’s mission is to provide the most affordable, high quality education possible. System Success | Contributions to the State Total impact of Institutional spending projected to increase by 7.6 percent over the period of FY 2019-20 to 2022-23.Projected economic impact of the State System during FY 2022-23 is $3.8 billion, excluding impact from capital expenditures.Direct spending from FY 2013-14 to FY 2019-20 increased by 2.9 percent.Aggregate result of total direct spending in 2022-23 is expected to support approximately 45,940 jobs within the Commonwealth, in addition to the State System employees.
Each dollar invested by the Commonwealth to one State System university produced an average return of $8.30 in economic impact.Total economic impact of the State System on the Commonwealth during FY 19-20 was $4.0 billion.While State System universities not only provide a personal benefit to their students, they also represent a public good that has a multiplier effect for their community and for the Commonwealth. State System universities are catalysts for upward social mobility for the whole community, and especially for those underrepresented populations that face social and economic barriers to success.