Dive Brief:
- The Pennsylvania State System of Higher Education announced changes to health plan costs for non-teaching staff, but a similar plan proposed to faculty and coaches as part of union contract negotiations was rejected.
- Lancaster Online reports the union is seeking a one-year contract that includes raises and the system said it would agree to the deal if the increased costs for the health plan were added, but the union said no.
- System Chancellor Frank Brogan said savings to the health care plans will help keep tuition low, but while nonunionized staff members had no say in the matter, faculty and coaches plan to fight the increased costs.
Dive Insight:
State systems of higher education are budgeting with decreased state funding at a time when other costs are rising faster than inflation. Some state schools are starting to plan for a time when their institution will be "public" in name more than in funding sources. A handful of community colleges in Arizona already have that reality. They do not get any money from the state. The Pennsylvania plan to cut healthcare costs could save $3.5 million per year across the entire system.
Employee costs make up a majority of most college budgets. Keeping these costs down is one way to save money. Schools have shifted to rely on adjunct instructors instead of tenured faculty with full benefits and a lifetime job guarantee. But students as well as faculty are starting to fight back against this trend.