Audit: Penn State most expensive public university in Big Ten conference

State Auditor General Eugene DePasquale took Penn State to task Thursday for skyrocketing tuition and growing preference for out-of-state students at its University Park campus.

In a news conference coinciding with the release of the office's first-ever performance audit of the university, DePasquale unleashed a blistering criticism of Penn State, saying a combination of rising tuition and a seeming preference for out-of-state students has left countless Pennsylvania students locked out of the public land grant school.

DePasquale cited statistics from 1990-91 that showed 76.5 percent of students at the school's main campus were Pennsylvania residents, compared to only 56.2 percent in the 2015-16 school year.

"In 11 of the past 16 years and the last 7 consecutive years, non-resident acceptance rates were higher than that of Pennsylvania residents," DePasquale said. "The thumb is being put on the scale for international and out-of-state students. Don't get me wrong. I think there should be all of everything at universities, but Pennsylvania students should be winning tiebreakers. ... It looks as though Pennsylvania students are losing tiebreakers to out-of-state students and that has to change."

University officials said the Legislature's general support appropriation, used primarily to offset the cost of tuition for Pennsylvania resident students, has steadily decreased over many decades. They agreed that has been a major factor in tuition increases.

"In fact, the university's appropriation for 2016-17 is lower than it was in 2001-02," school officials said in response to DePasquale's comments. "If Penn State's state appropriation had kept pace with the consumer price index since 2001-02, the university would have received $134 million of additional appropriations in 2016-17, which would have translated to approximately a 19 percent tuition reduction for Pennsylvania resident students."

DePasquale's 115-page audit took a sweeping look at the school, reviewing issues from tuition and admittance rates to compliance with protection for children and students on campus. DePasquale came back with 23 findings and nine recommendations.

Auditors said Penn State tuition increased by 535 percent in the past 30 years. DePasquale said that made it the most-expensive public university in the Big Ten conference, with tuition of $19,347 in 2016-17. The University of Nebraska, the lowest priced school in the conference, had tuition of $8,618.

"Penn State must do whatever is necessary to control tuition," DePasquale said.

He cited a friend of his son's who was admitted to both schools and chose Nebraska.

"As a Pennsylvania resident, it was more affordable for her to go to Nebraska," he said.

DePasquale conceded all other state universities in the conference receive more state support than Penn State. Indeed, some students have found more affordable options at private schools.

"Actually going to private liberal-arts colleges with financial aid — not sticker price, but what you actually pay — they become more affordable than Pitt, Penn State and Temple," DePasquale said, explaining that the state-related research universities typically do not offer the level of institutional aid that private schools can provide.

DePasquale conceded that part of the issue at Penn State is that state subsidies to the school "fell off a cliff" during the period in question. But he also attributed part of the increases to dramatic campus expansions during that period.

He said audit findings suggest Penn State has turned to admitting an ever-increasing number of out-of-state students, who pay an additional tuition premium of about $15,000 a year, to balance its books.

DePasquale suggested the state may need to consider seeking a cap on out-of-state enrollment at Penn State, Pitt and Temple. But he said he would rather see state appropriations increased to give Pennsylvania residents a better shot at admissions.

Debra Erdley is a Tribune-Review staff writer. Reach her at 412-320-7996, derdley@tribweb.com or via Twitter @deberdley_trib.