GOP Legislator Says GOP Wants to Eliminate All Direct State Funding to All Public Colleges, even CCs

[JPZenger]

http://lehighvalleyramblings.blogspot.com/2011/05/reichley-delivers-reality-check-at.html

Republican State Representative Doug "Reichley added that Republicans are looking at a proposal, down the road, of eliminating all operating money that goes to state related colleges, including community colleges, and giving the money to PHEAA for grants to families and students "to put the bargaining power back in the hands of the families who are paying the tuition, and create competitive pressure on the institutions to provide you the best bargain."

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That makes sense - the 50 to 52% cuts to State-owned and state-related universities and the 10% cut to community colleges is simply the first step in an ideologically driven master plan. Corbett hates public education, and wants to eliminate direct state funding. (I guess he's still pissed off that he had to travel to the borderlands of Texas to find a fourth-tier private law school that would take him).

In effect, all state money for colleges would be through a voucher-type system, in the same way they are trying to install in phases for elementary and high schools.

[Divernan]

1. Until PHEAA's Bd. is rid of politicians & oversight is tightened, it remains corrupt.

I worked with many PA state agencies and observed PHEAA to be the most self-serving, corrupt of the lot. For those legislators (both D and R)who were the most interested in maximizing their legislative perks, an appointment to the PHEAA board was the penultimate appointment. It sickened me to hear one Dem house memeber - who would sell his vote on any bill except one dealing with abortion (he campaigned on "right-to-life" issues) brag about going on these retreats where every board member could get "private" massages.

Wagner critical of changes to PHEAA board
July 10, 2010

HARRISBURG - State Auditor General Jack Wagner says a newly signed bill does virtually nothing to improve the makeup of the 20-member board of the state's student-aid agency. Gov. Rendell signed the bill Friday, a day after Wagner asked him to veto it. Wagner had advocated for eight lawmakers on the Pennsylvania Higher Education Assistance Agency's (PHEAA) board to be replaced by top banking and economic development advisers to the governor, college and university leaders, and a student. The bill calls for no more than four of the board's 16 legislators to be replaced by nonlegislators, and such appointments can only be made if a legislator wants to leave. PHEAA has come under fire in recent years for its high executive salaries and spending on lavish board retreats.

http://articles.philly.com/2010-07-10/news/24968187_1_pheaa-board-wagner-20-member-board

The board consists of 16 state lawmakers, three appointees by the governor and the secretary of education. Auditor General Jack Wagner, in a 2008 audit conducted during a scandal centered on the agency's profligate spending, recommended leaving eight legislators on the board.

Read more: Makeup of PHEAA board may change - Pittsburgh Tribune-Review http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_675015.html#ixzz1LEMbO4Nd

"When Dick Willey is looking at a salary of $280,000, that's sufficient. These people accepted their jobs knowing what the salaries were," she said.

"When you take a government job, you're in it for public service, not to fill your pockets. If these people think they can make more money on the outside, if they're unhappy with their salaries, they need to leave."

Mr. Willey's bonus was almost $181,000 -- or $16,500 more than the governor's annual salary. Executive vice presidents Timothy Guenther, Brian Lechner and James Preston each received $113,300 bonuses on top of $217,300 base salaries. In each case, the bonuses were about $1,000 more than last year's.

A fifth vice president, Kelly Logan, who joined the agency in January, received a bonus of $52,400 on top of a $201,200 salary. Ms. Logan is not related to the senator.

Together, the five bonuses totalled $573,800.

Read more: http://www.post-gazette.com/pg/07236/811760-298.stm#ixzz1LEQ0Jdjv


PHEAA AND RESORTS

The board members of the state’s student aid agency held retreats at a host of pricey resorts. After a series of reports in The Patriot-News, the Pennsylvania Higher Education Assistance Agency would undergo sweeping changes. The newspaper found that PHEAA spent more than $860,000 for six board retreats at resorts between 2000 and 2005. And the agency spent more than $2.2 million on promotional giveaways between 2003 and 2007, even after Gov. Ed Rendell issued a memo saying he wanted to put an end to buying novelty items such as rubber ducks and T-shirts with PHEAA names on them. Dick Willey, the CEO during that time, would resign amidst growing criticism from the Rendell administration, and the board would gain new leadership. The governor became further irritated after learning that the agency spent $409,000 on a legal fight with The Patriot-News and other media organizations to block the disclosure of expenses related to the retreats. The Commonwealth Court ordered the agency to pay
The Patriot-News’ legal fees.
http://www.pennlive.com/midstate/index.ssf/2010/01/decade_in_review_top_p

With 16 of 20 board members, including the Board Chairman, from the General Assembly, PHEAA has received about $440 million a year to run its loan and grant programs. While paying lavish salaries and bonuses to its top administrators, and treating it board members/state legislators to the most lavish boondoggle trips, i.e., "executive retreats" the state legislature has ever seen, the credit ratings of PHEAA's bonds were downgraded by Moody's and the agency stopped issuing certain types of student loans. During the global market meltdown a couple of years ago, "PHEAA stopped issuing certain types of student loans. The New York ratings agency Moody's downgraded the credit rating of PHEAA bonds Feb. 23, 2009, citing problems in the lending market."

"PHEAA responded by cutting about $72 million from its budget, giving 250 employees buyouts, ending bonuses for management and cutting its marketing budget. The cuts came amid public outcry over hundreds of thousands of dollars PHEAA spent on executive retreats and other expenses, and a $400,000 legal bill to defend against a Harrisburg newspaper's lawsuit to make the spending public."

Read more: Makeup of PHEAA board may change - Pittsburgh Tribune-Review http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_675015.html#ixzz1LEO5jdkI