Under Ohio Gov. John Kasich’s higher-education funding model, Ohio University is projected to receive the biggest increase in state funds compared to other state universities this fiscal year.
Of Ohio’s 13 public four-year universities, OU’s state funds will grow by almost 9.1 percent under the Ohio Board of Regents State Share of Instruction allocation, which is not part of the biennial budget, according to fiscal year 2014 projections.
OU’s portion of this fund — $124.7 million, or almost 10 percent — is based on the state’s new commitment to funding higher education based on degrees granted, not solely on the number of enrolled students.
The board grew this funding pool by slightly more than 2 percent between fiscal years 2013 and 2014, from about $1.231 billion to about $1.257 billion, respectively.
“At this point, we feel very good about our graduation rate and all the reasons why we’re able to receive a significant allocation,” OU President Roderick McDavis said.
‘Graduation rate funding’ formula is a misnomer
Simply stating that state funding is now linked to graduation rates is misleading, said David Creamer, Miami University’s vice president for Finance and Business Services.
“Everybody hears, ‘Well, it’s based on graduation,’” Creamer said. “No, you get other things considered into how to fund each of those graduations.”
Of fiscal year 2014 projections:
• 50 percent of funding is based on degrees granted
• 28 percent of funding is based on course completion
• 12.86 percent of funding for doctoral-degree completion
• 8.61 percent of funding for medical school appropriation
The type of student and what he or she is studying might also draw more dollars, said John Day, OU’s associate provost for Academic Budget and Planning.
Certain kinds of degrees, such as STEM majors — degrees in sciences, math and technology — attract money under the state’s analysis because of the fact that they cost a university more to produce.
Ohio’s Board of Regents determines a value for each degree for a statewide average. A civil engineering degree, for example, costs $106,892; a history degree costs $55,612, according to state data.
The State Share Instruction formula also awards more money to universities for the following:
• Graduating “at-risk”
students
• Granting in-state students degrees
Values of at-risk degrees—and thus, more valuable degrees—are driven by the following factors: the academic ability of the student, the student’s age, ethnic background and estimated family contribution.
“The institutions came up with the funding formula,” said David Cannon, vice chancellor for finance at the Board of Regents. “It was a great process for them to have the involvement to decide how the funding should be allocated.”
Universities such as OU that grant a large amount of at-risk and in-state degrees benefitted most from the change, Day said.
Almost 45 percent of OU students who completed courses during the 2012-13 academic year are considered at-risk either financially, academically or both.
OU also awarded 6,803 degrees to in-state students during the 2012-13 academic year.
That’s why Miami University, which has the highest six-year graduation rate in the state, is projected to receive only a 1.51 percent increase in SSI compared to last year. The university, Creamer said, has fewer at-risk and in-state students than other state universities do.
“We agree with the direction that the formula’s moving … even though financially it wasn’t positive for us,” Creamer said.
Ohio State University, with the second-highest six-year graduation rate in the state, will receive the largest chunk at 26.5 percent.
‘We have not changed’
Despite the changes in the formula, OU has not changed — and has no plans to change — its admissions criteria, said Craig Cornell, OU’s vice provost for enrollment management.
“We have not changed the university’s admission policy or strategy to meet an arbitrary end goal of graduation rates,” Cornell said. “It’s more about the support mechanisms (to) make sure students are staying and are successful.”
Student success and course completion have been a focus at OU for a long time, Cornell said.
“We do very well on these measures … but it doesn’t mean we shouldn’t be doing better,” said David Descutner, dean of University College and associate provost for undergraduate studies.
Increasing student retention and graduation rates fulfills OU’s moral commitment to its students, helps the university’s prestige with prospective students and raises the revenues of the university, he said.
“The students that we admit here, obviously we want them to graduate,” Descutner said. “(But) if they don’t graduate here, one of the things we’re proud of is they typically graduate (elsewhere).”
The state allocation makes it clear OU is making the right decisions, Descutner and Cornell said, but the university remains skeptical of SSI funding, a fund that has historically dropped for the university.
“As the conversation is continuing in Columbus about the formula, we are remaining cautious about what we received and what we will receive for the fiscal year 2015 budget,” McDavis said.
dd195710@ohiou.edu
@WillDrabold
