This marks the first year where state college and universities’ funding is entirely based on performance rather than number of students enrolled.
Ohio Board of Regents’ Jeff Robinson said the funding percentages break down into a handful of criteria:
“Degree completion, which is 50 percent, there’s an additional 30 percent based on course completion, and then there’s some additional funding on there that has some other barometers for student success points,” Robinson explained.
The University of Akron’s provost Mike Sherman says this new plan has already helped the administration in taking a deeper look at who they were enrolling– and the results were not exactly ideal.
“What we discovered was we were admitting some students who had less than a 10 probability of graduating,” Sherman said. “Often at 5 or 6 times more cost per credit hour than other students.”
That led the university to create a tougher admissions process with more of a focus on ACT scores and applicants’ high school GPAs.
Sherman said he’s confident students admitted under this tougher approach will help increase the school’s graduation rate– and, in turn, their funding.
“We know from that approach, over time, we’ll achieve a 60 percent graduation rate or higher,” Sherman said. “Right now, it’s hovering in the low 40 percent range, because we previously accepted students who really had no chance of completing.”
Looking to the future, the Board of Regents’ Jeff Robinson says the funding plan for four year schools could be useful to the state’s 23 community colleges.
The upcoming mid-biennium budget review will likely include changes to their funding formulas.