Dayton Daily News...
Overhaul to make state schools more affordable may not work, some say
By Laura A. Bischoff, Columbus Bureau
Saturday, August 13, 2011 

COLUMBUS — One of the questions surrounding Board of Regents Chancellor Jim Petro’s plan to overhaul Ohio’s 14 four-year public universities goes to the heart of whether more Ohioans can achieve their dreams of higher education: Will the plan make college more affordable? 

The average undergraduate tuition and fees at the state’s 14 main campuses climbed to $9,217 in fiscal year 2011, up 75 percent over fiscal year 2002, according to the Board of Regents. That puts Ohio tuition costs well above the national average of $6,397. 

In a 2008 report card issued by the National Center for Public Policy and Higher Education, Ohio earned an F in college affordability. 

Adjusted for inflation, the national average cost of tuition, fees, books and room and board at four-year institutions climbed 115 percent between 1980 and 2010 and 36.8 percent between 2000 and 2010, according to the U.S. Department of Education. 

Petro’s plan, unveiled last week, calls for relieving universities of government mandates and in exchange, requiring them to earmark between 10 and 20 percent of their state funds for a merit-based scholarship aimed at Ohio’s brightest students. 

The plan requires approval by the General Assembly. 

“Unfortunately, there is an assumption that any savings would become ‘extra’ funds to be used for new purposes. The reality is that we have taken very significant budget cuts and still have a large budget gap. We are pushing hard to improve efficiencies so that we can move forward minimizing tuition increases while increasing quality. That is our big financial challenge and eliminating nonproductive regulations can help us to that,” said Miami University President David Hodge. 

The U.S. Department of Education ranks Miami University as the fifth most expensive public four-year university in the country. It costs $19,305 a year for tuition, books, fees, supplies, room and board at Miami, less financial aid awards, according to the U.S. Department of Education. 

Ohio has five universities ranking among the top 32 most expensive public four-year universities: Miami, Ohio State, Ohio, University of Cincinnati, and Shawnee State. 

Tucked into Petro’s plan are a few changes that could impact tuition costs. 

For example, universities would be allowed to charge different tuition rates for classes held in peak and nonpeak hours. This could give students a chance to save money by taking classes in less popular time slots, such as Fridays or early mornings, and allow universities to better balance facility use, said Spencer Waugh, policy director for the Board of Regents. 

Also, for universities that want to attain “international enterprise” status, they’ll have to meet at least seven of nine performance benchmarks. Three of those benchmarks could impact affordability: have at least 20 percent of students in internship or work co-op programs, lower tuition costs or tie them to inflation, sign an agreement with a community college to accept all credits earned by students transferring between the two-year and four-year institution. 

Ohio State University has an agreement with Columbus State Community College to allow students to transfer to OSU and bring along their community college credits. Earning credits at community colleges, where tuition averages $3,200, is a key strategy for making higher education more affordable. The Board of Regents said 39,777 students transferred within the university system last year, a 32 percent increase over 2002, and students saved $20.1 million by taking courses at the community college level instead of at a four-year university. 

Petro said he is uncertain whether state-imposed tuition freezes or caps would be among the mandates that would be vanquished for enterprise universities. He doubts that lawmakers would be willing to give up that power. 

Although not part of the enterprise plan, Petro said the state is pushing universities to give students ways to complete bachelor degrees in three years, instead of four. By 2012, universities must have plans in place for three-year degrees for 10 percent of their programs and for 60 percent of their programs by 2014. 

Earning a bachelor’s in three years could save students a year’s worth of room and board costs. 

Inter-University Council President Bruce Johnson, who served as lieutenant governor under Republican Bob Taft, said tuition increases come when state support declines. 

State spending on higher education took up 17.7 percent of the general revenue budget in 1979 but is projected to account for only 10.5 percent this year. 

From 1975 to 1991, state spending on higher education grew at a robust clip. But the support sputtered in the early 90s, again a decade later and yet again in the last three years. 

The state now spends $2.23 billion on higher education, compared with $2.79 billion in 2009. 

Although students would benefit from the new scholarship money, for universities, the potential savings aren’t immediately clear. 

“A lot of the things that are being proposed don’t result in things that we can immediately translate into dollars that would be saved,” said Miami Finance Director David Creamer. “The reality is there’s not a lot of detail around even the regulatory relief. Until you see the legislation ... we could easily over- and under-estimate the benefits of that change.” 

Read it at the Dayton Daily News