Joan Benso, president and CEO of Pennsylvania Partnerships for Children, told listeners on Radio Smart Talk earlier this week, “In the last 20 years, the Consumer Price Index has gone up about 100%. Family income has gone up about 140%. Health care has gone up 300%. But the cost of higher education has gone up over 400%. Families are now finding themselves in a place that their expectations for their children have to be readjusted in these difficult times.”

So, what exactly does “readjusted” mean? To some, it means staying closer to home by attending a community college or a nearby state-system school. Peter Van Buskirk, former dean of admission at Franklin and Marshall College, is a national expert on college admissions and created The Admission Game website and program to empower families to make informed decisions about higher education. He says students and parents need to prioritize and soul-search a bit before investigating college choices. He suggests answering first a very basic question: What do you want to do with your education? Let the answer to that question guide your selections. Van Buskirk urges parents and students not to apply to colleges that are neither academically nor financially feasible. “You must learn to manage expectations,” he cautions. On the plus side he adds, “Very rarely is the amount that a college lists as its sticker price the price you will pay. Financial aid will reduce that amount if you demonstrate need. Some schools will give merit-based financial aid regardless of need and that will reduce the sticker price, as well.”

Joan Benso emphasizes that 45% of the fastest growing, family-sustaining jobs in the commonwealth do not require a bachelor’s degree. An industry-based credential often is sufficient and can be obtained for much less cost out-of-pocket than a full-blown four-year college experience. They both will share their insights on the challenge of higher education funding with us on Friday night.

Gov. Ed Rendell broadened the conversation on alternative funding for higher ed with his budget proposal last month to legalize video poker machines. Under Rendell’s plan which he has gone on the road to promote, the state would license, regulate, and tax about 17,000 video poker machines at bars, clubs and restaurants and use the proceeds to fund higher-education grants for Pennsylvania students attending one of the 14 state-system universities or a community college. Students at Penn State, Pitt and the other state-related schools and private colleges would not qualify for the grants. Rendell predicts the number of video poker machines (now illegal) could double or triple, ringing in some $550 million for the state. Students with family incomes of up to $100,000 could receive grants of up to $7,600 a year.

However, Pennsylvania’s Republican Attorney General (a potential 2010 gubernatorial candidate) Tom Corbett says the plan could violate existing agreements with the state’s casinos which paid $50 million each for slots licenses.

The plan also doesn’t pass muster with state Senator Jeff Piccola, one of Rendell's most passionate critics. The Dauphin County Republican chairs the Senate Education Committee. He unveiled his own tuition-assistance plan last month. Piccola says it would provide financial assistance to 25,000 additional students attending a college or university of their choice in Pennsylvania. Piccola claims his plan would increase funding for community colleges, place caps on tuition increases, and instill more accountability.

Piccola wants to target an additional $145 million to the Pennsylvania Higher Education Assistance Agency's (PHEAA) State Grant program. Those dollars are awarded based on financial need.

"I believe that we already have a vibrant network of colleges and universities throughout our Commonwealth. Our marketplace works, therefore, students and their families should have choice and not be pigeonholed like Rendell's plan," Piccola said when he released his proposal. Piccola pays for the grants through cuts in spending (including cuts to universities and museums) and the elimination of film-industry tax credits. And he would require that all Pennsylvania colleges and universities receiving state funding keep tuition increases at or below the Consumer Price Index. Plus, Piccola puts some accountability on students, too – requiring grant recipients to graduate in four years and maintain at least a “C” average.

Gov. Rendell had proposed $42 million in cuts to state-related universities but now says the federal higher education stimulus money coming to PA will offset those cuts. At a House Appropriations Committee budget hearing this week, Penn State president Graham Spanier testified that the federal stimulus funds will help but that he still would have to raise tuition about 5 percent next year. The presidents of the other three state-related universities made no predictions about tuition hikes. Higher education comprises about 8 percent of the state budget and the federal stimulus relief is temporary.

There also has been a lot of chatter about the State Board of Education's suggestion that Pennsylvania create a “no frills” college. They would offer accelerated degress with very few amenities.

Dr. Kathleen Shaw, Deputy Secretary for Postsecondary and Higher Education in the state Department of Education, and Sen. Piccola will discuss these competing proposals on Friday night's show.

From higher ed to hiring. Jobs in cutting-edge fields like biotechnology, medical arts, and pharmaceuticals are going begging for talent across the state. Pennsylvania educators and government leaders want to encourage students to pursue advanced medical careers and they have found a compelling and visual way to do it. Harrisburg's Whitaker Center for Science and the Arts, Penn State Milton S. Hershey Medical Center and Highmark Blue Shield launched a new educational collaboration this week that allows high school students to watch a live surgery. It's the first program of its kind in Pennsylvania, and only one of four in the entire country. Smart Talk producer Heather Woolridge will dissect that story and then Carolyn Scanlan, President and CEO of the Hospital and Healthsystem Association of Pennsylvania and Bridgette Wendel, a pharmacy student at Temple University, will join me to talk about trends in medical-career training.

And, finally, just when you thought the bad economic news couldn't get much worse, along comes data that confirms more of us are victims of identity theft. The Federal Trade Commission's consumer complaint report details the worsening identity theft and fraud problem. We'll go in-depth on the report and offer tips on how to protect your personal information and finances from scammers -- especially imporant as you gear up for the April 15th tax deadline. The FTC says the number of fraudulent tax returns filed because of identity theft increased 579% between 2002 and 2007. The Federal Trade Commission received more than 56,000 complaints in 2007 alone. In January the Pennsylvania Commission on Crime and Delinquency started a new website chock full of good ideas for avoiding a rip-off. Smart Talk Producer Mark Wallace has the story.

Be sure to join us Friday night at 8:30, or catch the repeat telecast Sunday at Noon. And feel free to send along your comments and questions for our guests. You can email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .