The choices we make

As I approach the end of more than six years as chancellor, I remain in awe of PASSHE’s power as an engine of social mobility and workforce development for all Pennsylvanians and its potential to advance its historic mission against all headwinds.

In so many ways, these state-owned universities have changed little since I first visited them in the fall of 2018. They are today as they were then: each is amazing and beautiful in distinctive ways. Each is populated with incredible people – faculty and staff who are devoted to the mission, damned good at what they do – students who are excited to engage, learn, and grow.

Yet, in so many ways, they have also changed profoundly. Need evidence? Look at the usual “input” and “output” numbers. System enrollment, having slid for more than a decade, is stable; student retention and graduation rates have improved. And having had the honor of never once recommending a tuition increase, our net average price of attendance has declined by nearly 25% in inflation-adjusted dollars, thanks to you, members of the Board, for your courage, and to two governors and several sessions of the General Assembly.

Changes are also apparent as universities respond to Pennsylvania’s urgent need for an adult population with the skills and abilities to sustain its economic competitiveness, health, and well-being.

Let us not forget that sixty percent of today’s jobs in this commonwealth require a postsecondary education, which only fifty-one percent of adults have. And there aren’t enough traditional PASSHE students – high school graduates – to educate into those jobs.

So, what are PASSHE universities doing by way of response?

They are opening their doors to new groups of students, reaching well beyond the “traditional” ones we have served so well for decades. We see growth in:

• dual enrollment programs for high school students;
• strengthened community college transfer and dual enrollment programs;
• degree-completion programs for the million-plus Pennsylvanians who once attended college but did not complete their degree;
• non-degree credentials (taking months, not years), enabling people to upskill and re-skill to improve their competitiveness in the changing worlds of work; and
• bespoke programs that help employers recruit, retain, and develop their workforce.

Changes in educational delivery—notably growth in the number of students enrolled in fully online programs—also reflect our interest in serving new student groups, including those lacking the ability or interest in face-to-face residential education.

Student support is changing so we can scaffold everyone’s success. This is apparent in support for students with insecure housing and food sources, improved academic prep for students entering or returning to postsecondary education, and the availability of “navigators” who help students find the resources and support they need (when needed) to succeed.

The system has also changed. Universities now work together with servant-leadership support from the system office to increase efficiency, improve service quality, and learn more rapidly how to evolve to meet the changing needs of students, their employers, and communities. They share many commonly required back-office services (payroll, HR, benefits, procurement) that drive down costs.

Ok. Big yawn. That’s pretty typical in today’s university systems.

Far less typically, they build “front-office” shared services—notably program and course sharing—to expand student opportunities. That’s a game-changer. Imagine what we can do for Pennsylvanians when any student anywhere in the system can access programs and courses everywhere.

Three other systemwide efforts stand out above others owing to their tremendous potential to position us powerfully to advance into the future in the interest of our students and the state:

1. PASSHE universities are working together to document and support employees’ adoption of high-impact practices that improve organizational performance and student outcomes. We began with budget and program management and have moved on to student-facing educational functions.
2. Using data, PASSHE universities ensure that credentialing programs respond to employee, student, and demographic demand; student support is targeted to help more people make it into and through their education and into a good job; and faculty and staff have information they need to perform at the highest level.
3. System governance is equipped with the incentives and accountabilities that advance the Board’s priorities – ensuring more people are able affordably to engage in and complete a credential that can advance their careers, and the system’s universities are managed effectively, transparently, and in a financially sustainable manner.

PASSHE’s transformation story over the past six years demonstrates that higher education’s future is shaped – but not determined – by political, demographic, technological, and other sectoral trends beyond its control. It shows that the choices people make matter.

Making good choices:

• faculty and student-facing employees continually evolve their practice to help more students succeed;
• university leaders mobilize followership behind clearly articulated, analytically derived, and data-driven strategies, ensuring their universities keep pace with rapidly changing student and workforce needs;
• universities work together as part of a system to accelerate each other’s progress, build on strengths, and shore up weaknesses; and
• state elected officials make policy and budget decisions that strengthen public higher education as an engine of workforce development and social mobility.

Yes. We can.

Actually: “Yes. We do.”

The transformation story also suggests that higher education can tackle the most difficult and complex challenges – even the seemingly intractable ones.

I’m frequently asked what the most important thing is that I’ve learned at PASSHE.

My answer? The obstacles typically thrown in the way of change (“we can’t do that because...”) are mirages.

Where necessary reforms are constrained by policy, we change the policy; where impeded by employee capability, we invest in professional development; where constrained by law, we sometimes even change the law.

I’m also asked what, if anything, will stand in the way of continuing progress. As a trained historian, I’m loathed to make predictions. But if I had to, I’d say that inertia coupled with the absence of any collective sense of urgency is the greatest challenge.

It doesn’t need to be.

Remember March 2020 when the global pandemic taught us that universities offering face-to-face and residential education are designed to accelerate the spread of lethal airborne disease? Social distancing, it turns out, is orthogonal to their operating model. And so, in a matter of weeks, faculty and staff re-imagined and retooled the operating model at every level of the organization.

What the general public saw was just the tip of that iceberg—students learning remotely via synchronous web-based applications. Below the waterline was a comprehensive, largely invisible re-crafting of supportive policy, operational, contractual, and regulatory environments. (Like you and most folks in higher education, I’m exhausted just remembering it.)

Still, that experience shows us what we can do when we have a collective sense of urgency. Can we achieve a similarly transformational level of urgency without the threat of a global pandemic?

I wonder. I hope so.

Why? Because the need for continued transformation is, well, urgent.

• The tsunami of disruptive change associated with AI is here – its headwaters are already crashing down on our shores.
• Our business model is still broken. Sure, PASSHE’s tremendous and difficult work financially stabilizing the system, and its universities bought us a little time but not salvation. In what time we have, our universities must choose what students they serve and then equip themselves, accordingly, retooling aggressively if they decide to serve a more comprehensive array of students or downsizing significantly if they remain primarily serving traditional students.
• The partnership with our owners—the state—has been strengthened, and like any partnership, it requires constant nurturing, care, and attention. Unlike many partnerships, it is susceptible to economic cycles, suggesting we should reimagine ourselves in ways that protect us when our partner finds it difficult.
• Competition intensifies as universities and colleges aggressively seek to attract the same students to enroll. And guess what? They are choosing from the same relatively small set of strategic options we are considering.
• And the public’s trust in higher education is in freefall.

Time is not our friend when addressing these challenges.

Looking across the national landscape, it is clear that the swift and agile higher education institutions will effectively address these issues. By so doing, they will win the race to higher, sustaining ground while better serving their students and communities.

Others will wither. Some will be consumed, and others will disappear. Sadly, many will be left as shadows of their former selves, lurching through crises against a backdrop of constant and severe recession management. Sure, legacy, history, a misplaced sense of entitlement, and political connectivity may help a few, but probably not very much and not for long.

And the stakes in this race? They couldn’t be higher.

I fear it is possible that the postsecondary education sector will double down on reifying privilege and widening social inequality. While I believe the arc of history remains tilted in that direction, we can bend it.

The past is not prologue; the future is the cumulative effect of individual choices, and choices have consequences. PASSHE’s transformation story to-date has confirmed that conviction. Change is possible, and that fuels and sustains my irrepressible optimism.

Thank you for this tremendous opportunity to serve. It has been a privilege and a pleasure to work with and learn from you — faculty, staff, trustees, presidents, board members, system office and university colleagues, our elected officials, and — above all — our students.

Know for a fact that I will follow your progress from afar (though I’m not sure that description is entirely accurate for old uptown Harrisburg, which is about a mile and a half from where we sit).

And, as ever, we have a lot to do. So, onwards.

OPEN LETTER TO ALL STUDENTS, FACULTY, STAFF AND SUPPORTERS OF PASSHE

Dear friends,  

I have informed the PASSHE Board of Governors that I will end my service as Chancellor effective Friday, October 11, 2024 (after our next Board meeting). This has been one of the most challenging decisions of my career.   

For six years, I have poured my heart and soul into our system, its people, mission, and places. My passion for our work, students, and cause is unwavering. A significant amount of good, critical, and undoubtedly hard work is yet to be done for our students, their communities, and Pennsylvania.    

At the same time, U.S. higher education is struggling — at any number of levels, in any number of ways. The risks are profound. The crises are real. And the students—the people—that I care about the most are in danger of being left further behind. So, when a compelling opportunity presented itself to work nationally, I had to take it seriously.     

I need to help—at least to try to help. It’s in my DNA—a product of my upbringing. And the urgency has only intensified as I realize that the runway ahead of me is a whole lot shorter than the one behind me. I am reminded now more than ever of words I was raised with: “If I am only for myself, what am I? And if not now, when?”     

You will always be in my heart and thoughts, and I look forward to following your progress as you grow ever stronger.   

It is an honor and a privilege to serve you as chancellor. I am deeply grateful for the opportunity, the collegiality, the camaraderie, and the progress we have made.       

As for me? I will remain here in Harrisburg in the same row house with the same YMCA membership, bike routes, and routine Thursday afternoon visits to the Broad Street Market.       

Meanwhile, you have my admiration and warmest regards.    

Cheers,

Dan

P.S. I will let you know of my next steps when I am free to share the information in September.

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Congratulations, graduates!

What a tremendous accomplishment you have logged in completing your degree. Your hard work – the investment you have made in yourself – will serve you well going forward. Of that, I have no doubt. 

Here are a few reasons why.

While completing your degree, you will have learned how to navigate a complex system by making the best possible choices – not least, which courses to take – that draw upon available options, align with your interests, and help you accomplish your goals. That is a skill you will use again (and again and again). Did you know that the average worker changes jobs a dozen times throughout a career and may change careers at least four times?

While completing your degree, you will have developed a well-stocked tool kit that enables you to encounter, process, and effectively utilize new information, to gain and deploy wholly new competencies and skills. Many of you will have nurtured innate curiosity. These habits will serve you well as you navigate your career(s) and life. Did you know that half of all workers’ core skills will need to be updated every five years? By obtaining your degree, you didn’t pack your suitcase for the long haul. No. You equipped yourself to “evolve your wardrobe” as the consummate lifelong learner.

While completing your degree, I hope and pray that you will have learned to engage with respect, appreciate, and — in a humanistic way — even love people who are not like you, people from different backgrounds, and with other world views, cultures, and habits. Goodness knows respect, common decency, tolerance — these basic values — are in short supply. I’ve always believed that universities are among the few places left in this country where people naturally encounter others unlike themselves and, by so doing, hone their humanity. This trait will serve you well, but also will serve your communities and our nation.

Please thank the people who supported you in acquiring your degree – your family and friends, our faculty and staff. And take a moment to acknowledge your accomplishment.

Most importantly, be as proud of your accomplishment as I am.

Celebrate!

Message to Faculty and Staff

Dear PASSHE Colleagues:   

Last week, I had the opportunity to visit Millersville University with Dr. Khalid Mumin, Pennsylvania’s secretary of education; Dr. Kate Shaw, deputy secretary and commissioner for postsecondary and higher education; and Dr. Daniel Wubah, Millersville’s president. Meeting with students pursuing various majors in the College of Science and Technology, we saw first-hand how the university partners with high schools, community colleges, and regional employers to develop degree pathways that lead to jobs in high demand in and around central Pennsylvania.

Students spoke about their experiences — reflecting on internships and other work-based learning opportunities. Faculty spoke about the innovations they were introducing to support students traveling along these pathways. Employers spoke to the critical role Millersville plays in helping them to recruit and keep talent in Pennsylvania. And we saw from their perspectives the value of degrees grounded in a general education. It was a fantastic day because it shone a bright light on the energy and dynamism that is apparent across all of our PASSHE universities. We are relevant, we are current, we are energetic, entrepreneurial, and focused on quality, and yes, we are open for business!                  

We also know change isn’t easy. We realize this from many perspectives, but here I will focus on our work lives and the tectonic shifts they have undergone. I think about the significant shifts that have occurred just in my career and am gobsmacked by the breadth of areas in academe that have seen transformation. Thirty-five years ago, when I started as a newly minted faculty member at Glasgow University in Scotland, I was working at a 573-year-old university teaching in a field that focused on the past. Student grades were expressed as Greek letters for which there were no numerical equivalents (to what would you equate a “beta double minus” or even more problematically an “alpha gamma” – perhaps connoting flashes of brilliance but sloppily presented?).         

The World Wide Web was a year or two away from being created, the library was accessible via a card catalog, and while email existed, access to it from home required a noisy (and scarce) dial-up modem. There was “remote connectivity” (it was called a phone). And there were biofuels (known quaintly as “wood”).         

Work life was idyllic. It was simple. 

Yet, my interest in understanding how systems-thinking can catalyze learning would lead me to undertake very different roles that I had never imagined before, things like building data archives and digital libraries, investing in nationwide higher education reforms to improve higher education access and outcomes for historically underserved people, and leveraging the connective and collective power of systems to help all students. Soon, I found myself as a scholar of history — one who studied the immutable and settled (if still vigorously debated) — now focused on the future and the changes it brings.       

Work life got more complicated.       

Amid change, we ask how we can be resilient without becoming cynical. How can we empathize with those involved or impacted by the work? How can we share reflections with and learn from peers making similar journeys — giving voice to uncertainty and doubt — without undermining standing? How can we do this without denying our physical, psychological, and emotional health?       

At our recent Board of Governors meeting, our West Chester colleague Dr. Tina Chiarelli Helminiak — Tina serves as the faculty liaison to our Board by virtue of her role as chair of the PASSHE Faculty Council — spoke about the importance of acknowledging the hard work everyone has done to cope with the transformational changes we are seeing in higher education nationally and here at home in our State System. And she is right.        

I hit on the same set of themes in my remarks to the Board, drawing from my inaugural address in January 2019, in which I reflected on what I had learned from my first 14-campus PASSHE tour. Here’s what I said then: 

I found an amazing collection of institutions populated by incredible people — students, faculty, and staff who take quite seriously why they are there and have immense pride in our mission. 

I found universities that provide engaging experiences you see at the best liberal arts colleges, only at a public university price.

I found universities that are unique in the educational programs they offer. Their distinctiveness stands out in quiet, confident defiance of a misguided, inaccurate public narrative that we are somehow all the same.  

I found universities that are responsive to changing societal needs. Again, defying a different public narrative, they offer a broad array of educational opportunities, focused increasingly on those aligned with employer needs — in healthcare, business, STEM, and other areas.  

I found universities that house some of the most innovative practices I have seen in higher education. I’ve seen a lot in a 35-year career self-consciously located on the leading edge.

And above all, I found a profound sense of optimism amongst people – our faculty and staff who had at that stage experienced deep cumulative budget cuts for over a decade — but who nonetheless had a desire to hope and to create our future—not only to survive, but to thrive.         

Five years and many more campus tours later — through all the shift, change, pandemic and recovery, and integration — I find the very same things to be true. I feel the very same way.          

And at the same time, I recognize and won’t ignore the fact that the level and pace of change we have experienced and that you have managed through also brings exhaustion, burnout, and some level of fear. That is real and will undoubtedly re-surface as conversations initiated by Governor Shapiro take place about how public higher education evolves in the state. (You can read more about his proposals for higher education HERE.)     

In case it is helpful, here is what I plan to do as those conversations unfold: remain focused on two things — 1) what is best for the students of Pennsylvania, and 2) how can I best support you — my colleagues, our faculty and staff — in the work. These two objectives work hand-in-glove and will remain at the forefront for me as the commonwealth considers the future framework for public higher education.         

The Governor has said this is the start of the discussion, which could take quite a while because this scale of change does not happen quickly. Let’s remember this is a marathon, not a sprint.

One further point I must add. In speaking to a new vision for public higher education in Pennsylvania, references have been made to the commonwealth’s broader higher education system as being broken. I don’t need to have a point of view on that, but what I know for a fact is that you — the people who have built our universities and our system and who run them and who work in them in service to our students, their communities, and employers are not broken. You are underserved, maybe, with regard to public investment, but you a not broken. Not by a long shot. You are tremendous, and today, I am as proud and admiring of what you do as I was the first time I had the privilege of touring our campuses.   

We do not live in an acknowledgment culture. I regret that, but I won’t bend to it.          

Thank you for everything you do, for the commitment you show to your university, our system, our students, and this commonwealth — each of you plays a critical role in shaping our future.

With much appreciation and the deepest gratitude,    

Dan

A bold idea worthy of attention

In my last blog I explained how universities and colleges like ours are adapting creatively to the tremendous financial, political, and demographic pressures that are bearing down on them. They are re-imagining themselves at a rate and pace that is unheard of in higher education, in order that they may continue as essential engines of workforce development, social mobility, and a more accepting and civil society. 

As a follow up, I want to share some thoughts about Governor Josh Shapiro’s proposal for major enhancements to Pennsylvania’s public higher education sector – namely the ten PASSHE universities and the state’s 15 community colleges. In a nutshell, it seeks to leverage the strengths of these very institutions to accelerate the pace of innovation we are seeing here in support of students, their communities, employers, and the state. 

First, the Governor’s proposal would drive substantially more investment into PASSHE universities and into the community colleges, making them significantly more affordable for Pennsylvanians. That is key to filling the state’s talent gap because these institutions serve nearly half of all low-income (Pell eligible) students in the state. What’s more, these students make up more than a third of enrollments at PASSHE universities and community colleges — a far greater percentage than in other sectors.  

Currently, the state is 49th nationally in its investment in higher education. Despite this, these institutions consistently deliver the most affordable, high-quality education options for students and a strong talent pipeline for the state. We are good at what we do in a way that testifies to the quality of our faculty and staff – their creativity and commitment. Imagine what we could accomplish if the state invested more in our work and in our students. 

Second, the proposal seeks to create an entirely new system that would include all 25 institutions as equal members. What a tremendous opportunity.   

Systems can be enormously powerful. PASSHE is a great example. Our universities have worked as a system to drive innovation that has expanded opportunities for students, grown enrollment, and improved metrics — all while controlling costs. Working as a system, our PASSHE universities have partnered effectively with the state to increase funding, enabling us to keep tuition frozen for six consecutive years — a rare accomplishment in public higher education.  

We are all incredibly proud of the progress our PASSHE universities have made, but there’s only so much we can do by ourselves. Imagine what we might accomplish as part of a new system involving our universities and community colleges working together. If done right, this new system can transform how PA delivers public higher education, strengthen our economy, provide pathways for all into and beyond the middle class.  

Change is complicated. It engenders all sorts of emotions: excitement, wonder, intrigue, curiosity, apprehension, and more. So you know, I feel excitement about creating an even more effective higher education system; intrigue about what it will take to bring together 25 unique colleges and universities under one, new umbrella; curiosity about how we can tap into the best of what we know and do and leverage it toward something even better.    

As the governor has said, this is the start of a conversation that will result in a detailed plan. And the details matter. No doubt these will be difficult conversations that require us to ask difficult questions of each other and of ourselves.   

I’m an historian by training, so I feel more comfortable reviewing the past than predicting the future. Still, I can’t help but think that these courageous conversations will present real opportunities for Pennsylvania and the students we serve.  

And as an historian, I’ve observed that moments of true transformation are about convergence – the combination of people, ideas, and time. I believe that we have the people.  We have the ideas.  And now – now is the time.   

Dan 

Amid the national higher ed swirl, we stand together

Entering into a new calendar year affords an opportunity to reflect on higher education – our shared practice, mission, and passion. Such reflection occupied a good deal of my time during the recent holiday break.

For me, it’s a process. It’s richly informed by my PASSHE experiences and engagements with other universities, colleges, and entities operating in and around higher education. Inputs also include the research reports, articles, and books I consume voraciously when my schedule permits.

To my surprise, I kept bumping up against “disruptive innovation” – a concept I thought had diminished its hold over the “higher ed imagination.” Harvard’s Clayton Christensen developed disruptive innovation decades ago in The Innovator’s Dilemma (1997). It characterizes how small-scale participants in an existing market can compete effectively with large-scale players – even overturn their hold over the marketplace – by introducing new technologies or approaches that give them reach into underserved markets. In The Innovative University (2011), Christensen applied the concept to higher education. He argued that online learning would enable new higher ed providers to challenge existing ones by serving student markets at lower cost and by reaching into new markets. As a result of disruptive innovation, Christensen believed that many higher education institutions would ultimately close.

Christensen was only partly correct. Online learning has changed higher education fundamentally as it has become part of the very fabric at many institutions. When done well and by design, its acceptance by students, faculty, and administrators as a viable, quality means of instructional delivery has grown consistently since 2002, when Babson College started measuring such things. Unsurprisingly, use of online modalities grew consistently, with growth acceleration during and after the pandemic.

Enrollments at large-scale online institutions show no signs of receding, while the footprint of online learning at more traditionally oriented universities and colleges also continues to expand. But online learning has not proven to be the disruptive innovation that Christensen predicted it would be. Yes, there has been a steady uptick in the number of college closures, but nothing that yet heralds the more massive movement he expected. As a consequence, discussion about disruptive innovation in higher education moved onto a back burner a few years ago.

So why did I keep bumping into it over the holiday? Why do I enter the new year wondering whether it is back now with a vengeance, and likely with more staying power? I haven’t nailed that down yet, so here’s a “drafty” best guess.

In The Abundant University (2023), Michael D. Smith argues that the advance of online learning was necessary but insufficient to disrupt the higher education industry (obviously). It significantly expanded the reach of education providers. Still, it did not undermine their monopoly hold over postsecondary education and the awarding of degrees and credentials that employers use as proxies for the competencies they seek in their hires. Smith asks what happens: 

• When employers engage in skills-based hiring and look for real (rather than proxy) assessments of people’s competencies, whether through examinations used as part of the hiring process and/or with reference to skills-aligned non-degree credentials?
• When the market for skills-aligned non-degree credentials explodes and includes new actors such as Google and LinkedIn, whose tremendous reach and name recognition reduce to almost nothing the marginal cost of each new credential they produce, and the marketing required to get a student to enroll in the credentialing course or pathway?

Smith isn’t speculating about things that might happen. He is speaking directly to trends that are gaining significant traction right now. A 2023 survey of 800 employers found that 55 percent had eliminated degree requirements for some job positions in 2024 and 45 percent planned to do so in 2024.

Some topics Smith does not address directly are also germane.

The confidence that Americans have in higher education is slipping. Buckle your seatbelts. A 2023 report by Gallup leads with this: “Americans’ confidence in higher education has fallen to 36%, sharply lower than in two prior readings in 2015 (57%) and 2018 (48%).” Confidence is weaker among self-identified Republicans than among Democrats, but the differences are trivial. Americans’ confidence in higher education is not a partisan issue.

I have addressed this phenomenon before and put it down to a combination of factors. For example, the rising price of higher education puts it out of reach for low- and middle-income individuals, many of whom are disappointed, even angry, and feeling left behind in an economy that increasingly and in gross disproportion benefits the rich. (Arlie Russell Hochschild’s 2016 work Strangers in Their Land is brilliant on this last point.)

Another factor contributing to waning public trust is that higher education issues are getting swept up more frequently in the rough-and-tumble of partisan contests. As a result, higher ed’s reputation has suffered from attacks coming from both left and right along the political spectrum. And it doesn’t appear to matter that those attacks glom onto issues that are highly localized to a specific region of the country or a particular small corner of our vastly diverse industry. We are all painted with the same brush in the public’s mind. We are all Harvard. We are all New College. We are all Michigan State. We are all Missouri.

Recent developments have only exacerbated these confidence-busting and politically polarizing tendencies. Research by economists Raj Chetty, David Deming, and John Friedman shows how ruthlessly efficient elite universities are at reproducing privilege in this country. It’s been raising eyebrows among higher education insiders for some time, with occasional play being made with the content in the media (for example, in this article in Forbes). And it has served as background to attacks, again from both left and right, on higher education with respect to its diffidence, irrelevance, and elitism. Reactions to Hamas’s October 7 attack on Israel and Israel’s ensuing response — whatever you think of them — dumped a boatload of fuel on those burning embers.

I haven’t even touched on artificial intelligence, which already is rocking our world and will continue to do so in ways we cannot even begin to imagine. But for those interested in a little foray, have a look at ChatGPT’s response to the prompt I gave it earlier today: “What is disruption theory and how does it apply to higher education?”



I could go on, but I won’t because I want to get to the countervailing argument that I made with myself as I kept bumping into disruptive innovation. (And yes, I admit that Chancellor Dan does not require an audience to engage in the Socratic method, even though the method, by definition, appears to require one.)

My countervailing argument is based on my experience at PASSHE. More precisely, it is based on you, on the work you do in support of our students, in support of our mission as an engine of workforce development, social mobility, and a more civil, tolerant, and generous society. That work is tremendously impactful. It changes lives, saves some, and lifts up whole communities. It counters at every level the skepticism, cynicism, anger, and distrust swirling around higher education, amplifying potential for the industry’s disruption.

Our work – your work – is not performed in service to the one percent. The work is performed as per our birthright – for all Pennsylvanians. And you are damned good at what you do, by any measure. I’m partial to measures showing us how students who enroll from households in the lowest income quintile earn about as much 10 years after graduating as those from higher income quintiles. I’m partial to measures that show when we layer race/ethnicity onto that equation, we get a comparable result. Are there gaps in student outcomes? Yes, there are, particularly with regard to student persistence and graduation rates. They are large and unacceptable, and they exist between black/brown and white students, between wealthy and less wealthy students, and between rural and urban students. At the same time, we are dedicated to attacking these gaps and making progress – not swiftly enough for any of us, I know, but we are making progress, nonetheless.

We have a great deal more to do. But let us be clear, that report refers as much to our energy, dedication, and even innovation in these areas as it does to the scale of the hill that remains for us to climb.

Our work – your work – is closely aligned with employers’ needs. It is career-aligned. It always has been. We were born as teachers’ colleges, for goodness’ sake, and last I checked, teaching is a career. Obviously, the world has moved on, and the communities we serve require a great deal more than teachers. They need – and we produce – healthcare workers, business professionals, engineers and scientists, designers, artists, librarians, and more. They need, and we produce, people who can think creatively, communicate effectively, and work collaboratively as part of teams – skills that our graduates master in part because our programs are grounded in a general education that fosters those skills.

We don’t sit idly by, clinging to past accomplishments as the labor market changes. No. We evolve our programs continuously, because we are the people’s universities operating in service to all of Pennsylvania. You can track that evolution at the university level – I do – and see how changes in university degree programs reflect employers’ changing needs in the regions we serve.

And we continue to respond as employer needs continue to change. Employers we serve are increasingly turning to skills-based hiring. In response, many of our universities are integrating career-aligned non-degree credentials into their degree programs. Some are making such credentials available to non-degree students. The level of innovation is high, it is inspiring, and it is proceeding apace.

East Stroudsburg University is doing great using badges to acknowledge students who master employer-defined skills in specific areas of business, teaching, and sports science. Kutztown University is working with Coursera, through which students will have access to as many as 300 employer-recognized credentials they can pursue at no cost to themselves, thereby increasing their viability in the labor market. Through our partnership with Grow with Google – a partnership launched only last fall – our universities have enrolled nearly 700 students (350 of them unique learners) in courses that lead directly to high-demand credentials.

Our work – your work – is responsive to students’ ever-changing needs. I am acutely aware, as you are, of the challenges our students face, the pressures they are under, the level and breadth of anxiety they deal with as they navigate their lives, our universities, and their careers. Everything we see in the research literature speaks to the importance of highly personalized forms of student engagement – engagement tailored to a student’s specific needs whether performed online, face to face, or in some hybrid modality.

This work is awfully hard to do, especially as we engage more students from underserved markets. The increasing diversification of our student body and our program offerings defies a one-size-fits-all delivery model. And here, too, we’re pretty damned good – you’re pretty damned good. In the past several months, I’ve visited with faculty who are engaging students in research projects that are meaningful societally and tremendously powerful as opportunities for individual growth.

I’ve spoken with colleagues at Indiana University of Pennsylvania who are engaging proactively in a holistic approach to student success, ensuring that every student has access to a human navigator who can connect them with the resources they need to succeed in their very individualized educational journeys. (“Success coaches” and other related terms are used at other of our universities also pursuing this path.) I am inspired by the work our colleagues at PennWest Clarion are doing with the using a novel approach to “emergency aid” – an approach that helps students in need have instant access to the dollars they need to keep them from stopping out.

Our work – your work – is supported with hard-earned dollars received from students and from Pennsylvania taxpayers. Accordingly, and respectfully, you undertake that work with careful stewardship. Here too you have excelled, though the work has been especially challenging. In 2019, our universities adopted a standard budgeting process to get a more accurate picture of our financial circumstances. Initial results became available in Fall 2019 and showed six of our (then) 14 universities were spending beyond their means and dipping routinely into reserves to balance budgets. One of the six had exhausted its reserves and was relying on the others for extensive cross subsidy; four others were headed rapidly in that direction. Worse, the data showed the System careening toward a $160 million structural deficit that, if left unaddressed, would have exhausted our scarce reserves by 2027.

Today, structural deficits of that proportional magnitude are all too commonplace in higher education. They are showing up in like Arizona, California, West Virginia, and at other universities in Pennsylvania, just to name a few. In some ways, PASSHE was fortunate to have identified its deficit sooner rather than later, and to have acted swiftly to address it.

Four years later and because of your hard work, the System is more financially stable. That work has been rewarded by the General Assembly, which approved unprecedented back-to-back increases in state appropriations totaling 22%, as well as significant one-time investments including funds for unmanageable legacy debt burden. And the work was rewarded more recently by the credit rating agency, Moody’s, which raised PASSHE’s credit outlook from negative to stable. Students have benefited directly too. They have not seen a tuition increase for six years and are beginning to benefit from expanded investment in student financial aid and student services, the impacts of which are beginning to show up now routinely in improved enrollment and retention trends.

This is cause for celebration. Yet it is too soon to let down our guard. All of our universities are recovering, but several remain in a weakened state. As such, they are particularly sensitive to exogenous shocks of even the smallest magnitude — fall enrollments or state appropriations that come in even slightly below expectations, or sudden and unmanageable cost increases, for example. The bipartisan political coalition that came together and is essential to continued relatively high levels of state support also requires our constant careful attention and nurturing. Should it fracture, then PASSHE’s state appropriations will fall back into the pattern of neglect that characterized the 2010s, or worse. We need to proceed together with caution and care.

Lastly, the work – your work – is constantly looking for new constructs that enable us to fulfill our mission while taking account of the very challenging demographic, financial, and political circumstances in which we find ourselves. Colleagues at Commonwealth University and PennWest are fundamentally re-thinking educational, business, and administrative approaches so all students, irrespective of campus location, have access to the broadest possible range of academic programs and student supports.

Their stories are beginning to appear, and they should be written, told, and seriously studied. The work involved in blending departments, aligning campus policies and practices, building whole new program arrays and course scheduling protocols is, well, more than heroic. And it has been done in ways that are smart as well as effective.

As another example of innovation, colleagues at Cheyney are implementing a model that promises to sustain the university into the future, utilizing a range of creative partnerships to do so. Their progress is significant, and it is grossly under-recognized, including by those in regulatory and accrediting circles. (Note: Before the break, Board of Governors Chair Cynthia Shapira and I drafted a letter to the university community expressing our admiration for their work and offering our support in solidarity.)

Like many others across our System, these are stories of grit, determination, creativity, and purpose. They testify to our evolution as a public higher education system, our public-mindedness, and to the qualities that should be recognized as fundamental to public higher education. They testify – you testify – to our power and our promise. And it is on that note that I enter this new year.

Wishing each and every one of you a happy and healthy 2024. I look forward to seeing you on campus.