Oh, those college expenses.
There are those big ideas of what it will be like. It’s all freedom and independence until financial reality sets in. Then the calls start to come about borrowing money.
No, this isn’t about your sophomore psychology student wanting to use that emergency credit card. It’s about what happens when colleges are the ones with their hand out.
Universities, whether private or public, are usually nonprofit entities and, as a result, pay no taxes. Just ask the City of Pittsburgh, which is peppered with college properties that generate no tax revenue.
But will what once was an issue for pro sports teams become more common with post-secondary institutions? That is, leaning on the state or other government to build your own stadium or ice rink or baseball field.
Last year, Robert Morris University filed a grant application to the state Department of Community and Economic Development for a $28 million hockey arena, requesting $10 million in grant money.
That’s a big ask for a private school’s non-educational project. But it paid off. Gov. Josh Shapiro announced a $7 million Redevelopment Assistance Capital Program grant in November 2024.
Other schools have gotten grants, too. In August 2024, Shapiro unveiled $33 million in grants to 12 capital projects at community colleges, including $1.5 million for Allegheny County and $500,000 for Westmoreland County — but these were for instructional or program projects.
Many colleges rely on donors for their big-ticket sports construction. Penn State insists the cost of its $700 million Beaver Stadium renovation will be borne by athletics revenue, donations and selling naming rights (like the $50 million deal to play on West Shore Home Field). But not every school has the Nittany Lions’ deep pockets.
Seton Hill University is planning a $30 million athletic facility that would break ground in the spring and spend two years under construction. The plan includes a $37.5 million bond issue with the help of Latrobe Industrial Development Authority. That also will require approval from Latrobe City Council, as well as Westmoreland County and the state.
However, these are less like asking parents for a handout than they are like asking for parents to cosign a student loan.
Is Seton Hill getting a state grant? Yes. The remainder of the bond issue funding will pair with a $4 million grant to renovate Sullivan Hall. But, hey, plenty of students fund their education with a mix of loans and grants, right?
As a smart student can tell you, how you pay for college can be as important to your future as the college you choose. The same can be true of how colleges spend their money. What they build is a reflection of their programs. How they fund those buildings is a reflection on their programs.