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Pitt trustee votes against funding for Pitt

I’ve been told by another BOT member (who tells me they were shocked by this news) that she is generally the least likely state appointed member to cause problems. She is free to vote as she pleases in the legislature. However, the conflict that exists in this matter makes me think she should recuse herself in the matter or resign her position on the board if she feels compelled to vote this way. Pitt expends resources to lobby for this money. Time, energy and money. For her to vote no is a direct conflict with that effort. I don’t know where this ends, but I know she’s got other BOT members fired up.
She's likely not standing in the way of funding passing (i.e. not the swing vote as it failed by 6 votes), so she is likely playing politics in the legislature by aligning with the no vote political block. She may not vote no if her vote was the sole vote holding up the funding. Still, it is a bad look and should be looked at to be censured by Pitt's board.

She has made public statements that are supportive of Pitt in the past on various issues.
 
My 2-cents:

Pitt was once 100% private but was bailed out by the State when Chancellor Litchfield damaged Pitt economically in a well-intentioned effort to make Pitt the "Stanford of the EAST." From Wikkipedia:

Edward Harold Litchfield (April 14, 1914 – March 8, 1968) was an American educator and the twelfth Chancellor (1956–1965) of the University of Pittsburgh. He is best known for a major expansion of the university, but also a failure to raise sufficient capital to fund such growth, eventually leading to his resignation in July 1965.

As noted, State funding has slipped to 9% from 30% of Pitt's budget. If the slippage continues there will probably be a state support percentage reached where remaining "state related" will no longer make much, if any, economic sense.

I would note that the decrease in state support as a percentage is probably not solely due to the State reducing its funding in absolute dollar amounts; but, likely has a Pitt increasing its self-supporting income component as well--especially since the cost of attending all colleges and universities has grown for decades at a rate well in excess of the growth in the overall cost of living.

Crazy Paco's take on the funding issue would be interesting---I added this before Paco posted.
It is true that state funding has dropped by a combination of Pitt's budget getting bigger (and there are many reasons for that, primarily greatly increased R&D expenditures) and the state failing to keep pace with CPI inflation, let alone higher education inflation. The primary expense at all universities is faculty and staff salaries and benefits (not administrative besides that popular narrative, although I don't disagree there has been a largely unnecessary proliferation of administrative positions). Unlike CPI inflation that measures the cost of widgets whose production can be outsourced to Mexico or Vietnam to keep labor and overall costs down, universities are intensive human service providers that can't be outsourced, and salaries and benefits have generally fallen quite a bit behind the private sector for such terminal degree expertise. Regardless, when adjusting for inflation, Pitt is now receiving less % support from the state then in some of the years BEFORE it became state related in 1966. Let that sink in.
 
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It is true that state funding has dropped by a combination of Pitt's budget getting bigger (and there are many reasons for that, primarily greatly increased R&D expenditures) and the state failing to keep pace with CPI inflation, let alone higher education inflation. The primary expense at all universities is faculty and staff salaries and benefits (not administrative besides that popular narrative, although I don't disagree there has been a largely unnecessary proliferation of administrative positions). Unlike CPI inflation that measures the cost of widgets whose production can be outsourced to Mexico or Vietnam to keep labor and overall costs down, universities are intensive human service providers that can't be outsourced, and salaries and benefits have generally fallen quite a bit behind the private sector for such terminal degree expertise. Regardless, when adjusting for inflation, Pitt is now receiving less total $ support from the state then in some of the years BEFORE it became state related in 1966. Let that sink in.
Paco

Do you think the state is sending a message to education funding that they will start to focus on community colleges and fully funded state schools and the PITT, PSU, TEMPLE, and Lincoln need to accept this for the future?
 
Paco

Do you think the state is sending a message to education funding that they will start to focus on community colleges and fully funded state schools and the PITT, PSU, TEMPLE, and Lincoln need to accept this for the future?

Not seriously, IMO; this is about mostly political grandstanding, and we've seen this in the past. In 2009, appropriations for the commonwealth system schools weren't passed until late December...5 and 1/2 months late. It wrecked havoc on Pitt's budget and planning that year, as you could imagine and resulted in increases in tuition to students; caused layoffs at Penn State. Similar rhetoric was thrown around, including reverting the schools to private status, and the schools were starting to explore that possibility.

I can't predict the future, but I only base my opinion on this isn't the first time this is happened, and likely won't be the last. However, what is going on behind the scenes, I have no idea. But this uncertainty makes it very tough on the universities and students though. Luckily, Pitt is in the best financial shape of any of the other 3.
 
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Her vote seems simple enough. Funding for 3 of 4 schools failed to pass. All 3 schools would not agree to keep tuition the same. The 1 school that got funded agreed to maintaining current tuition. If her position on the Board re conditional tuition increases matches her position in the legislature, there is nothing wrong with her vote.
 
This is interesting. Hearing her reasoning would be helpful. Maybe she was for a higher amount of funding so voted against? If Rep Mihalek has been generally supportive of Pitt in the past, maybe she has earned some benefit of doubt until she speaks out to her reasoning?
As far as conflict of interest goes, that's another interesting issue. The conflict is actually by design. The legislature appointed her, and a full 1/3 of the Board. I would think the intent would be for them to participate in both the Pitt Board and the PA Legislature on issues pertaining to both. Otherwise why appoint them?
 
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Agree- recusing from voting is the right move - either for or against. I’m surprised that isn’t the mo to be honest . It’s clearly a conflict of interest.
Others in the thread state that she was appointed by the Legislature. That would seem to preclude recusal as it is nonsense.
 
And giving them less State funding means they will have to charge even higher tuition. How does that solve the problem?
It is called "leverage". Funding comes with strings attached.
 
It is called "leverage". Funding comes with strings attached.
This money is earmarked for one purpose, to enable Pitt to charge lower tuition to in-state students. It does nothing for Pitt, and essentially is passed through to these students. So they are the ones who will be effected if this money disappears. Do those Republicans who oppose this funding want to explain to their constituents that they will have to pay higher tuition to go to Pitt? That is going to go over very well.
 
This money is earmarked for one purpose, to enable Pitt to charge lower tuition to in-state students. It does nothing for Pitt, and essentially is passed through to these students. So they are the ones who will be effected if this money disappears. Do those Republicans who oppose this funding want to explain to their constituents that they will have to pay higher tuition to go to Pitt? That is going to go over very well.
They already have to explain why their constituents have to pay higher tuition since Pitt refuses to hold it steady.

How does it go over when constituents' tax dollars get taken from them in addition to paying higher tuition?
 
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How does it go over when constituents' tax dollars get taken from them in addition to paying higher tuition?
It goes over well at the faculty Christmas party. .....But really, I think Pitt is not a big part of the problem, for one Pitt draws a lot of Professional talent worthy of a decent wage. and secondly I don't think Pitt has a ton of mamby pamby programs /degrees in comparison to alot of other PA schools, but what do I know?
 
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The Pa legislature wants the State Related Schools to hold tuition steady but they keep reducing the funding they give.

Consider Pennsylvania has one of the largest body(number) of legislators in the entire nation.

Maybe its time for them to reduce their number by about 25% and save the taxpayers money.

HAIL TO PITT!!!!
 
Consider the facts on the size of the Pennsylvania Legislature.

Pennsylvania has a population of about 13 million but is governed by a HUGE number of Rep. compared to all other States.

Pennsylvania House of Rep has 203 members (Largest in the Nation)
Pennsylvania State Senate has 50 members.

The United States of America has a population of 334 million and is governed by 100 senators and 435 house members.

Maybe, the size of the PA legislature needs to be reduced just as funding for Pitt was reduced from about 30% to 9%.

HAIL TO PITT!!!!
 
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Others in the thread state that she was appointed by the Legislature. That would seem to preclude recusal as it is nonsense.
Any time you serve on a board, especially one like this, you are required to always act in the best interest of the organization because of your fiduciary responsibilities to the organization. If she is acting with any personal interests, like making sure her standing in a party gets her re-elected, it is a breach of that responsibility from the board's point of view. It's actually a pretty serious matter and if the other directors are doing their job, she should be required to explain her actions, in writing, or face penalties. And that is not to say that her reasons aren't justifiable although if she does have objections to a policy or a planned tuition increase, those should have been noted -- again, in writing -- to the board and placed in the record. I realize there are complexities to holding dual role's here because she also holds a responsibility to act in the best interest of her constituents but if there is truly a conflict, she should resign from the board.
 
Any time you serve on a board, especially one like this, you are required to always act in the best interest of the organization because of your fiduciary responsibilities to the organization. If she is acting with any personal interests, like making sure her standing in a party gets her re-elected, it is a breach of that responsibility from the board's point of view. It's actually a pretty serious matter and if the other directors are doing their job, she should be required to explain her actions, in writing, or face penalties. And that is not to say that her reasons aren't justifiable although if she does have objections to a policy or a planned tuition increase, those should have been noted -- again, in writing -- to the board and placed in the record. I realize there are complexities to holding dual role's here because she also holds a responsibility to act in the best interest of her constituents but if there is truly a conflict, she should resign from the board.
Well said.
 
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Any time you serve on a board, especially one like this, you are required to always act in the best interest of the organization because of your fiduciary responsibilities to the organization. If she is acting with any personal interests, like making sure her standing in a party gets her re-elected, it is a breach of that responsibility from the board's point of view. It's actually a pretty serious matter and if the other directors are doing their job, she should be required to explain her actions, in writing, or face penalties. And that is not to say that her reasons aren't justifiable although if she does have objections to a policy or a planned tuition increase, those should have been noted -- again, in writing -- to the board and placed in the record. I realize there are complexities to holding dual role's here because she also holds a responsibility to act in the best interest of her constituents but if there is truly a conflict, she should resign from the board.
When the legislature puts a person on the Board, a recusal for her political positions would be nonsense.
 
When the legislature puts a person on the Board, a recusal for her political positions would be nonsense.
Just curious - are you versed in the legal requirements of a board member's fiduciary responsibilities? Because that appears to be the issue here. If she cannot meet that responsibility, due to her political position, she should resign from the board. That is the simple solution. She cannot have it both ways.
 
Just curious - are you versed in the legal requirements of a board member's fiduciary responsibilities? Because that appears to be the issue here. If she cannot meet that responsibility, due to her political position, she should resign from the board. That is the simple solution. She cannot have it both ways.
As an appointee by the legislature, her first responsibility is to the legislature. She represents their interests on the board,
 
Just curious - are you versed in the legal requirements of a board member's fiduciary responsibilities? Because that appears to be the issue here. If she cannot meet that responsibility, due to her political position, she should resign from the board. That is the simple solution. She cannot have it both ways.
Simple question. When a union member is appointed to a company's BOD, should he vote for employee pay cuts because it is in the best interests of the company?
 
As an appointee by the legislature, her first responsibility is to the legislature. She represents their interests on the board,
I mentioned that in a prior post in this thread. The conflict of interest is actually by design in such a situation. All legislature appointed board members would have the same conflict. If they all recused themselves from fiscal decisions there is no point in having them.
 
Her vote seems simple enough. Funding for 3 of 4 schools failed to pass. All 3 schools would not agree to keep tuition the same. The 1 school that got funded agreed to maintaining current tuition. If her position on the Board re conditional tuition increases matches her position in the legislature, there is nothing wrong with her vote.

As a Republican politician, yes, there is nothing wrong with her vote. As a Pitt trustee, there is EVERYTHING wrong with her vote. How do you not know that?
 
Here is another way to view this. As a representative she also has constituents who rely on the state’s appropriation for a reduced tuition fee. Those constituents are of all political affiliations. That is what this money is earmarked for. It’s been the deal since 1966. I don’t see her being some watchdog for the state. That’s not what is going on here. I see it as many do. Someone who allowed political grandstanding to get in the way of doing what was not only in the best interests of Pitt, but also the interests of many of her constituents. I, like many of you, am a PA resident. I also have a son who attends Pitt. Perhaps we have a little more skin in the game than others simply opining from states that support public education at a much higher level than PA does. It’s just a sad and sorry state of affairs when every darn thing has to become a game of political chicken.
 
Here is another way to view this. As a representative she also has constituents who rely on the state’s appropriation for a reduced tuition fee. Those constituents are of all political affiliations. That is what this money is earmarked for. It’s been the deal since 1966. I don’t see her being some watchdog for the state. That’s not what is going on here. I see it as many do. Someone who allowed political grandstanding to get in the way of doing what was not only in the best interests of Pitt, but also the interests of many of her constituents. I, like many of you, am a PA resident. I also have a son who attends Pitt. Perhaps we have a little more skin in the game than others simply opining from states that support public education at a much higher level than PA does. It’s just a sad and sorry state of affairs when every darn thing has to become a game of political chicken.
Her goal seems to be exactly what you state her constituents want - lower tuition. Posters want to believe the only way that happens is for those same constituents to pay more in taxes so the state can fund the university. That is not the only way to reach that goal.
 
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As a Republican politician, yes, there is nothing wrong with her vote. As a Pitt trustee, there is EVERYTHING wrong with her vote. How do you not know that?
What do you not understand that her position on the board is to represent the people who appointed her?
 
Her goal seems to be exactly what you state her constituents want - lower tuition. Posters want to believe the only way that happens is for those same constituents to pay more in taxes so the state can fund the university. That is not the only way to reach that goal.
Ok. Maybe we just see how to achieve this in different ways. Perhaps tuition in PA would be lower if PA supported public education at a higher rate than all but one state? Withholding funds earmarked to fund in-state tuition reductions doesn’t achieve this in my view. The thing in this case is I don’t believe for one minute that Mihalik was doing anything other than kissing the rear ends of the leadership in her party in Harrisburg. That clouds my view, admittedly.
 
There is such hypocrisy in these situations. I can remember all of these business ethics classes and courses we would have to take. Basically telling me it might not be wrong to fraternize with customers or competitors, but it could have "the appearance of improprieties".

Loved that. I got shot down by my boss during one corporate meeting as I wanted to point out (out loud) that our CEO sits on the board of one of our bigger customers. And you are worried about the appearance of two engineers from two companies having a beer??
 
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As an appointee by the legislature, her first responsibility is to the legislature. She represents their interests on the board,
Nope. The legislature's interest in having board members is to have oversight of funds once they are given.

Also, a member of the legislature never has a responsibility to that body. They are responsible to their constituents. If her interests are truly lower tuition, this is exactly the opposite of what she should be doing for her district. She should be advocating for the board to help facilitate that with funds from the state and then finding ways to make those funds work better for students.

I don't really understand how there is this "expense" oriented approach from people regarding the funding of higher education. It's an investment that is in the best interest of society. Instead, we have somehow gone down this rabbit hole where the legislature is more concerned about pushing more and more money towards PHEAA and its well documented ability to drive up borrowing costs and mismanage its mission.
 
There is such hypocrisy in these situations. I can remember all of these business ethics classes and courses we would have to take. Basically telling me it might not be wrong, but it could have "the appearance of improprieties".

Loved that. I got shot down by my boss during one corporate meeting as I wanted to point out (out loud) that our CEO sits on the board of one of our bigger customers. And you are worried about the appearance of two engineers from two companies having a beer??
Well, you might find out that you're being grossly undercompensated or that another company treats engineers like human beings. A CEO that is price fixing for, and collecting a paycheck from a customer is just fine so long as he doesn't draw too much attention to himself when he needs to dump his shares when he finds out that the customer won't be needing what you're selling them any longer.
 
Her goal seems to be exactly what you state her constituents want - lower tuition. Posters want to believe the only way that happens is for those same constituents to pay more in taxes so the state can fund the university. That is not the only way to reach that goal.
If someone takes the republicans in the legislature at their word about this, then they should expect a visit from the Chief Wallet Inspector and be prepared to recite their social security number and the security code on the back of their credit cards.
 
Her goal seems to be exactly what you state her constituents want - lower tuition. Posters want to believe the only way that happens is for those same constituents to pay more in taxes so the state can fund the university. That is not the only way to reach that goal.
Absolutely. She could be using her position on the board to find ways to make those dollars go further. That's why she's there.
 
Nope. The legislature's interest in having board members is to have oversight of funds once they are given.

Also, a member of the legislature never has a responsibility to that body. They are responsible to their constituents. If her interests are truly lower tuition, this is exactly the opposite of what she should be doing for her district. She should be advocating for the board to help facilitate that with funds from the state and then finding ways to make those funds work better for students.

I don't really understand how there is this "expense" oriented approach from people regarding the funding of higher education. It's an investment that is in the best interest of society. Instead, we have somehow gone down this rabbit hole where the legislature is more concerned about pushing more and more money towards PHEAA and its well documented ability to drive up borrowing costs and mismanage its mission.
Her role in the legislature is to her constituents. Her role when appointed to any body is to those who appointed her.

The "expense" you're speaking is taxes paid by workers in PA. Why should pipefitters and electricians and anyone other non-college attendee pay for the lower tuition for others?
 
If someone takes the republicans in the legislature at their word about this, then they should expect a visit from the Chief Wallet Inspector and be prepared to recite their social security number and the security code on the back of their credit cards.
The same can be said for Dems and all other pols.

Regardless, the principle she claimed is sound.
 
Her role in the legislature is to her constituents. Her role when appointed to any body is to those who appointed her.

The "expense" you're speaking is taxes paid by workers in PA. Why should pipefitters and electricians and anyone other non-college attendee pay for the lower tuition for others?

because it makes the state of PA better, prevents brain drain, among a host of other reasons.

And where do you see that is her "role"? Source please?
 
because it makes the state of PA better, prevents brain drain, among a host of other reasons.

And where do you see that is her "role"? Source please?
Brain drain is prevented by keeping graduates in the state with good jobs and good living conditions. PA taxes and regulations need to be changed to do that.

Her role is common sense. Prove me wrong.
 
Her role in the legislature is to her constituents. Her role when appointed to any body is to those who appointed her.

The "expense" you're speaking is taxes paid by workers in PA. Why should pipefitters and electricians and anyone other non-college attendee pay for the lower tuition for others?
Your first statement is half right. The appointment is part of her duties to the state, also knows as the citizens. The overarching goal is to make sure public funds are spent correctly and that the university flourishes.

The second one has a pretty easy answer. There isn't any use for a pipefitter or an electrician if a group of people don't have the education and skills to design buildings or other infrastructure. Universities provide the foundations for those skills. But it's not just working stiffs who pay taxes, either. Those higher paying jobs requiring an education pay larger tax bills since PA assesses payroll taxes on a flat percentage.
 
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