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: above state and national averages • College attainment (BA or higher): below state and national averages • Per-capita income: below state and national averages • Poverty level: higher 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 No community colleges

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

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 locallyimposed 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

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 1 Operating Revenues Expenses Income (Loss)

$2,925,831 $5,672,499 ($2,746,669)

Non-Operating State Appropriations Revenue Local Appropriations Revenue Net Operating Revenue

Total Income (Loss)

$1,508,580 $1,246,575 $2,755,155

$8,486

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 2 Operating Revenues Expenses Income (Loss)

$4,041,793 $6,799,091 ($2,757,298)

Non-Operating State Appropriations Revenue Local Appropriations Revenue Net Operating Revenue

Total Income (Loss)

$1,529,440 $1,246,575 $2,776,015

$18,717

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 3 Operating Revenues Expenses Income (Loss)

$5,182,444 $8,365,150 ($3,182,706)

Non-Operating State Appropriations Revenue Local Appropriations Revenue Net Operating Revenue

Total Income (Loss)

$1,932,920 $1,246,575 $3,179,495

($3,211)

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 4 Operating Revenues Expenses Income (Loss)

$6,175,544 $9,664,652 ($3,489,109)

Non-Operating State Appropriations Revenue Local Appropriations Revenue Net Operating Revenue

Total Income (Loss)

$2,253,460 $1,246,575 $3,500,035

$10,926

What’s Our Investment?

(Subject to change by Erie County)

Total Financial Projection | Year 5 Operating Revenues Expenses Income (Loss)

$7,224,855 $10,868,534 ($3,643,679)

Non-Operating State Appropriations Revenue Local Appropriations Revenue Net Operating Revenue

Total Income (Loss)

$2,575,100 $1,246,575 $3,821,675

$177,996

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, lessexpensive 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 _____.

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