State higher education funding, which is currently determined by enrollment, could shift to a model that factors in performance as early as the next academic year.
Because it is more expensive to teach classes with a greater number of students, schools currently receive aid based solely on enrollment. But under the proposed model, the state would consider other factors when awarding aid, and funding would be split 30 to 70 between performance and enrollment.
The new system would reward schools for producing results rather than rewarding them for their number of students, said Bruce Johnson, president of the Inter-University Council, an association that represents Ohio's four-year schools.
While the proposal has yet to be finalized, performance factors currently included are the number of students who pass core curriculum courses, graduation rate and university efforts at helping at-risk students.
According to Michael Chaney, director of communications for the Ohio Board of Regents, at-risk students are those who are statistically least likely to be retained as well as those who are ill-equipped academically.
In addition, each university would have a mission specific goal, which would be negotiated with Board of Regents Chancellor Eric Fingerhut.
Johnson said that this factor would focus on each school's Centers of Excellence, programs each four-year public school will identify as areas of specialization by June.
The advantage is to get the university itself aligned with its stated priorities
he said.
OU is currently working to select its Centers of Excellence in its graduate programs and is initiating a similar review of its undergraduate catalog.
The new formula could be recommended by Fingerhut as early as January, and, if accepted by the governor, the new funding model would take effect next year. Specific benchmarks for the performance factors have yet to be determined.
OU President Roderick McDavis said he supports a system in which funding is tied to performance.
What it says is we have to be accountable not only for recruiting students but for retaining them and for graduating them McDavis said, adding that he believes OU would do well under such a system because of its focus on improvement in those areas.
According to the Board of Regents, 71 percent of OU students graduate within six years, which ties Ohio State University for the second-best graduation rate in the state. Miami University has the highest six-year graduation rate of any four-year public university at 80 percent.
OU's freshman-to-sophomore retention rate rose to 80 percent this year, up two percent from last year, according to the Office of Institutional Research.
I believe we would fare well because we're focusing on retention. We're focusing on improving our graduation rate
McDavis said.
The state allotted more than $1.8 billion in funding for higher education this fiscal year, but because of budget shortfalls it is uncertain how much funding schools will receive in the upcoming two-year budget period, which starts July 1.
State funding currently makes up about 25 percent of OU's $657.8 million operating budget. Rebecca Vazquez-Skillings, assistant Vice President for Budget Planning and Analysis, said that while she anticipates that OU will do well under the new system, she doesn't expect an increase in funding for OU because state funding will decrease overall. While OU may receive a greater percentage of state funding under the new model, Vazquez said she believes the actual amount will be relatively similar to the current level.
I'm not exactly sure how things will turn out
but I don't anticipate we will receive more funding under the new system
Vazquez said.
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Wesley Lowery
