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?
• 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 _____.
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