State Update

Ohio Governor Signs Budget That Links Funding for Institutions of Higher Education to Graduation Rates

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On June 30, Gov. John Kasich (R-OH) approved the two-year state budget, H.B. 59. The budget provides a new funding formula that awards more state funding to colleges and universities with higher graduation rates (see PDF, page 3618-3629). Specifically, the share of university funding tied to graduation rates will increase from the current 20% to 50%. Community college funding will be tied to course and degree completion, with new success points based on measures of student achievement. Gov. Kasich recently released an updated chart detailing campus-by-campus funding projections for 2014 based on the new funding model.

Also, for universities, the approved budget limits in-state undergraduate tuition and general fee increases to no more than the greater of either 2% over what the institution charged in the previous academic year or 2% of the statewide average cost. For community colleges, annual tuition and general fee increases are capped at $100 (See H.B. 59, PDF, page 3631-3632).

In addition, Gov. Kasich vetoed a provision in the state budget which would have blocked Ohio from preparing to expand Medicaid coverage under the federal Affordable Care Act (see PDF, page 5). Gov. Kasich supports expanding Medicaid coverage, though many lawmakers in his own party oppose it. His veto prepares the state to accept federal funding for the expansion, if the Ohio General Assembly authorizes it.