Based on figures from 2008, the Chronicle survey states Penn State received  $2373 per student from the state — less than half the amount every other state university in the nation receives from state funding, aside from the University of Colorado. (Ohio State receives $10,647 per student, the State Univeristy of New York at Buffalo receives $16,086 per student and Rutgers in New Jersey receives $8,702 per student.)

Despite the drastically lower funding Penn State receives, the school has been at the top of the list for tuition among flagship unversities for many years. And still, Gov. Tom Corbett is suggesting a budget cut to reduce Penn State’s subsidy to less than half the current amount.

Penn State officials note the tragic nature of these budget cuts, but many still are going forward with plans that come with a hefty price tag.

For instance, the school officials are carryng on plans for a trip to mid-town Manhattan to meet with prestigious donors. Officials will stay at the Knickerbocker Suite of the Helmseley Hotel, where room rates average $250 per night.

Though some officials said they received “favorable rates” for the hotel arrangements, Gov. Tom Corbett is among the board members against the travel plans. He said he will not be attending, and has reprimanded other board members for attending a costly meeting and simultaneously complaining about budget cuts.

James C. Garland, retired president of Miami University of Ohio, said public universities have drastically boosted the cost of tuition, and majority of the money has gone toward administrative salaries and superfluous campus additions like climbing walls and luxury boxes at football stadiums. He said some state universities have even looked to out-of-state students who are required to pay higher tuition fees to subsidize the costs of such amenities.

Penn State is certainly not the only Pennsylvania school suffering from extremely limited funds.

Jane Wellman, an expert on higher education finance and CEO of Delta Cost Project, a Washington-based nonprofit that analyzes financial policies in higher education, said none of Pennsylvania’s state-owned or state-related universities have much leeway in terms of their budget.

Pennsylvania has never been generous with subsidies for public institutions, Wellman said.

She noted that the Pennsylvania State System of Higher Education (PASSHE) schools have already used the data from her Web site to cut budgets where they can, in an effort to be more cost-effective.

State officials have begun proposing resolutions to the funding problem: Corbett and the Garland both support a plan to award education subsidies to students directly, the require the schools to compete for those students who have been awarded the subsidies.

This plan would benefit both students and universities, raising the level of excellence across the board.

Garland said the same amount of money would end up at college campuses, but the funds would be more directly channeled toward students who are in need of support from the state.

For instance, the New England College of Business (NECB), which offers online degree programs, recently announced a reduction in tuition for curricula in business administration for all spouses of active-duty service members.

The school’s reduced tuition for military spouses in conjunction with the Military Spouse Career Advancement Accounts funding of $2,000 per year may help quell the cost of higher education that many families experience when they enter college.

Tracie Jefferson, who is an NECB student and a military spouse, recently took advantage of this program and plans to advance her career by pursuing a business degree.

“I like the flexibility, the layout, the features, and how user-friendly it is,” said Jefferson. “From the beginning, the professor was there in his introduction, he explained what we could expect and how the class would go, and he gave us a phone number and contact time if we had further questions.

For instance, the Arizona Board of Regents (ABOR) recently announced that it has made progress since it began offering new, low-cost options for students of all public-funded Arizona higher education institution who wish to earn a bachelors degree, according to the University of Arizona's news site.

Officials told the news provider that there are currently 1,162 bachelors degree pathway programs between the state's community colleges and universities. They added that students who are enrolled in select pathway tracks are eligible to receive a 50 percent discount in tuition from what they would pay if they completed their four-year degree on one of the main university campuses.

Furthermore, universities are also offering lower tuition options at extended campus centers and through accelerated and online degree programs. Currently, 11,000 students across the state are using their low-cost opportunities.

The university system's move to an Enterprise model has pushed them to offer more bachelor's degree in an accelerated format, which includes online learning as well as joint admissions programs with two-year schools and regional colleges within the state.

"Maintaining existing low-cost models and deploying even more in the future will be standard practice for the Enterprise as we navigate the challenge of educating larger numbers of students with dwindling state resources," Anne Mariucci, ABOR chairperson, told the news source.

Texas governor urges schools to offer cheaper bachelors degrees

In Texas, Governor Rick Perry recently announced a proposal that would push universities and colleges in the state to offer $10,000 bachelors degree programs, news station KXAN reports.

Many Texas lawmakers said that they believe tuition costs at four-year schools are too expensive, budgets are too large and colleges have lost sight of their main objective, which is to prepare students for a career.

For instance, officials told the news source that tuition and fees for 60 credit hours at Austin Community College costs $3,480. Meanwhile, the same amount of time spent at the University of Texas costs nearly $18,836.

"It is time for a bold, Texas-style solution to their challenge that I am sure the brightest minds in their universities can devise," Perry told the news provider. "Today I am challenging our institutions of higher education to develop bachelors degrees that cost not more than $10,000, including textbooks."

In order to achieve this goal, Perry suggests that schools should explore online options and innovative teaching techniques.

According to a 2009 Reuters report, the online education industry grew by 17 percent over the course of the year. Furthermore, the sector had been growing at a rate of approximately 20 percent annually in previous years. Furthermore, nearly 25 percent of U.S. students currently take at least some web-based courses.

Online school reduces tuition costs for military personnel

Meanwhile, some online schools like Excelsior College are targeting specific groups of individuals by offering tuition discounts. Officials from the learning institution recently announced that they are streamlining the application process and reducing the cost of going to school for military enrollees.

They added that the school will reduce graduate-level tuition for Army personnel from $455 per credit to $250 beginning for the March 2011 semester. Furthermore, the reduction will also apply to other branches of the military beginning in May.

"The military’s pre-college screening process provides all the necessary information to satisfy Excelsior’s application requirements, so military students can save time and start coursework earlier," said Susan Dewan, executive director of Excelsior’s Center for Military Education.