REthink Erie | Community Presentation

www.rethinkerie.com

What is REthink Erie?

• Collaboration of business, government,

economic development, education, social

service and philanthropic organizations

• Formed to look at region’s workforce,

economic development, and education needs

• Structured process involving more than 50

community and business leaders

Why REthink?

Direct correlation between educational attainment

and income levels in Erie County.

• High-school diploma attainment: aboveabove state and national averages

• College attainment (BA or higher): belowbelow state and national averages

• Per-capita income: belowbelow state and national averages

• Poverty level: higherhigher than state and national averages

Source: U.S. Census Bureau

Why REthink?

Why REthink?

• Every day 500+ skilled workforce positions

unfilled (BREP)

• 57% of all job opportunities 2006-2016 will

require some post-secondary education (BLS)

• Most populous PA area without a community

college

• Our tax dollars support the other 14 PA public

community colleges and benefit their

communities

PA Community Colleges

14 community colleges (with 26 campuses and 79 instructional sites)

NoNoNoNo community collegescommunity collegescommunity collegescommunity colleges

Where Are We Now?

• Administration: REthink provided application-related

files to Erie County, which is now leading the effort

• Erie County Sponsorship: Community and State to

resolve any sponsor resolution amendment issues

• Application: To be written and finalized by Erie

County (including pro forma, five-year program

delivery plan, and ten-year capital plan) by locally-

imposed deadline of 9/30/10

• Supplemental Data: Economic impact analysis to be completed when pro forma and capital plan finalized

What Will It Look Like?

• Students: Up to 1300 full- and part-time in first year

• Programs: What’s needed first?

Biotechnology Tech CAD/Mechanical Engineering

CNC Machining Computer Support Tech

Electronics Tech GIS Mapping Tech

Web Tech Health Information Tech

Management Tech Parks and Natural Resources

Welding

• Career transfer and remedial/developmental programs also possible

• Seven or eight of the 11 proposed occupational programs could use Erie County Technical School facilities and equipment

What Will it Look Like?

• Locally-controlled community college offering

programs our community needs

• Three sources of funding, by law: State, local

sources, student tuition

• New legislation directs 2% of local table games

revenue (estimate: $1.5 million/year) to establish

and maintain a community college in Erie County.

• Erie Community Foundation $1,000,000 gift (if application has local approval by 9/30/10); additional private-sector support accruing

(Subject to change by Erie County)

Total Financial Projection | Year 1

OperatingRevenues $2,925,831Expenses $5,672,499Income (Loss) ($2,746,669)

Non-OperatingState Appropriations Revenue $1,508,580Local Appropriations Revenue $1,246,575Net Operating Revenue $2,755,155

Total Income (Loss) $8,486

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 2

OperatingRevenues $4,041,793Expenses $6,799,091Income (Loss) ($2,757,298)

Non-OperatingState Appropriations Revenue $1,529,440Local Appropriations Revenue $1,246,575Net Operating Revenue $2,776,015

Total Income (Loss) $18,717

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 3

OperatingRevenues $5,182,444Expenses $8,365,150Income (Loss) ($3,182,706)

Non-OperatingState Appropriations Revenue $1,932,920Local Appropriations Revenue $1,246,575Net Operating Revenue $3,179,495

Total Income (Loss) ($3,211)

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 4

OperatingRevenues $6,175,544Expenses $9,664,652Income (Loss) ($3,489,109)

Non-OperatingState Appropriations Revenue $2,253,460Local Appropriations Revenue $1,246,575Net Operating Revenue $3,500,035

Total Income (Loss) $10,926

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 5

OperatingRevenues $7,224,855Expenses $10,868,534Income (Loss) ($3,643,679)

Non-OperatingState Appropriations Revenue $2,575,100Local Appropriations Revenue $1,246,575Net Operating Revenue $3,821,675

Total Income (Loss) $177,996

What’s Our Investment?

What’s Next?

• Application needs local sponsor approval prior

to submission to State

• Application is sent to the State Board of

Education; reviewed by Governor and public

• Application is outline plan; Board of Trustees

prepares final “120-Day Plan” after college is

approved by State

FAQs

• Why do we need another college? We have

fine ones already.

– Not “another college.”

– Community colleges have certificates, less-

expensive two-year degrees that transfer credits,

and life-long learning programs.

– Not everyone wants or needs a four-year

education right away.

– Some can’t meet four-year entrance requirements

(grades, test scores) or pay $14-$24,000 a year.

FAQs

• Why start a new community college? Why not

be a satellite of an existing college?

– We talked to three.

– Double tuition for out-of-county students.

– Start with transfer programs only; community

pays for specialized or occupational programs.

– No local Trustee; “advisory board” only.

– Financially benefits college’s home county.

FAQs

• What’s the difference between a community

college and a “proprietary” school?

– Different missions: Proprietaries are “for-profit”

businesses.

– Community colleges have wide-range of needed

programs, versus specialties of a proprietary.

– Community colleges can offer training degrees

with transfer credits; proprietary school degrees

usually don’t transfer.

FAQs

• Why train for jobs we don’t have? Businesses

are closing down.

– Community colleges help business attraction to

increase the tax base, bring in new jobs.

– Community colleges can educate for the next

cycle of job growth and Baby-Boomer retirement.

– If jobs are lost in one industry, community

colleges can retrain for another (in Michigan,

36,000 auto workers were retrained).

FAQs

• What is this going to cost me, the taxpayer?

– The State requires “local sponsor” participation.

– Local sponsor typically funds 7%-15% (not 33%).

– Estimates are for application purposes only:

Trustees find funds and decide to lease or build.

– In addition to table games and gifts, other funding

sources are being explored by the County.

FAQs

• I am retired and on a fixed income. I have no kids to send to college. What’s in it for me?

– A better local economy benefits us all.

– Businesses with stable, productive workforces stay in business and pay taxes.

– Underemployed or less-affluent can be educated and get jobs, reducing social services and costs.

– Community colleges help attract new businesses.

– $1 invested = $3 back to the community.

– And you may have always wanted to learn _____.

www.rethinkerie.com