OU won't do as well as hoped under new state subsidy guidelines

Ohio University will receive less funding than originally expected under a new State Share of Instruction (SSI) formula that places a higher emphasis on OU's enrollment and science, technology, engineering, medicine and mathematics courses (STEMM).

The change has contributed to the university's seriously considering a 3.5 percent tuition increase this winter and spring, as well as next school year.
Passed with the state budget earlier this summer, the new funding formula weighs in factors such as enrollment, graduate and undergraduate course completion, success in attracting and retaining at-risk students, degree attainment success, success in graduating at-risk students, and STEMM course incentives. "At-risk" students are those who qualify for Ohio's need-based financial aid.

OU did well in areas such as course completion, but the university's static enrollment was the biggest factor affecting the amount of money the university is receiving, said John Day, associate dean of academic affairs and associate provost for academic budgeting.

"We did well statewide with degrees granted and courses completed," Day said. "The problem with us is our enrollment has stayed flat while others in the state grew, and that put us behind."

The SSI makes up approximately 30 percent of the university's funding. For the 2010 fiscal year, the university will receive $124 million, an increase of 2.2 percent from the previous year. Ohio Gov. Ted Strickland originally designated the university to receive a 4 percent increase, but by the time the budget made it through the Legislature, the funding had dropped. State lawmakers also threw a clause into the new budget allowing Ohio state institutions to raise tuition 3.5 percent this year and next year, to make up for the loss of funding.

OU also did not perform as well as some other state institutions in attracting at-risk students. While southeast Ohio does have many economically disadvantaged families, Day said it's difficult to get those students to college.

As for OU's performance in the STEMM areas, the university must look at targeted enrollment growth in those areas, said Becky Watts, chief of staff for university President Roderick McDavis.

"When you do enrollment growth, you have to do it in a very targeted way," Watts said. "What we know now is that we need to maintain a high academic profile and at the same time do some targeted enrollment growth in the STEMM areas."

Watts and Day agreed that classroom capacity will be a challenge in growing the enrollment in these areas. These areas are usually more expensive, so growing in these areas could also cost more money, according to Day.

"Since we've been cutting, the question is do we have enough faculty to give more students classes?" Day said.

Simply improving these factors won't be the answer to getting the university more funds, though, Day explained. Tuition plays a much bigger role in the university's overall funding. Student retention, an area where OU does particularly well, is just as important since it keeps tuition dollars at OU. Attracting out-of-state students is also an area where OU can improve, because out-of-state students pay higher tuitions, Day said.

"We don't want to pay undue amounts of attention to this one thing, though it is important," Day added.

In April, some OU faculty members expressed concern that this funding formula would adversely affect academic quality at the university by subtly encouraging faculty to inflate grades in order to maintain funding. McDavis dismissed the notion, saying that the academic integrity of the university will remain high.

The funding formula was changed after the Ohio Board of Regents consulted with the Inter-University Council, the state body that represents Ohio's public institutions. McDavis was the chair of the body during this decision-making process.