1. 1 Changes in the State Share of Instruction FY 2008 and Beyond Presented by: The Office of Administrative Services

2. State Share of Instruction (SSI) Prior to FY 2010 Prior to FY 2008: A single enrollment driven SSI formula for all campuses based on expenditure patterns. Old taxonomy consisting of 16 subsidy models. FY 2008 Biennium: Off formula. Universities provided with a uniform 2% and 10% increase, respectively. 2

3. New Taxonomy In FY08 Ohio Board of Regents implemented a new subsidy taxonomy for funding course work. Increased number of models from 16 to 26 in order to decrease variance of cost within each model. Based on groupings of subject fields: –AH Arts & Humanities –BES Business, Education & Social Sciences –STEM Science, Technology, Engineering & Math 3

4. 26 Subsidy New Models Undergraduate: AH 1 AH 2 AH 3 AH 4 BES 1 BES 2 BES 3 BES 4 STEM 1 STEM 2 STEM 3 STEM 4 STEM 5 Graduate: AH 5Doc 1 AH 6Doc 2 Med 1 Med 2 BES 5 BES 6 BES 7 STEM 6 STEM 7 STEM 8 STEM 9 New Taxonomy Old Taxonomy General Studies I General Studies II General Studies III Baccalaureate I Baccalaureate II Baccalaureate III Masters I Masters II Masters III MPD1 Doctoral I Doctoral II Medical I Medical II 4

5. FY 2010 and Beyond Three SSI formulas, one each for university main campuses, regional campuses and community colleges. New formulas based increasingly on student success outcomes, rather than enrollments. Core subsidy based on course and degree completions to be gradually phased in over a period of four years. 5

6. University Main (UM) Campus Funding Methodology Beginning with FY2010-2011 biennium the State Share of Instruction (SSI) allocation includes funds previously associated with: State Share of Instruction Access Challenge Success Challenge Tuition Subsidy 6

7. University Main (UM) Campus Funding Methodology The following is subtracted from the SSI allocation: Doctoral Set-Aside = 12.89% of SSI allocation for UM Campuses Medical 1 Set-Aside = 1.61% of SSI allocation for UM Campuses Medical 2 Set-Aside = 6.96% of SSI allocation for UM Campuses FY2009 Access Challenge Allocations for Access Institutions STEP #1 7

8. University Main (UM) Campus Funding Methodology Next the Degree Attainment Component is subtracted: Equal to a percentage of SSI allocation for UM Campuses excluding the Access Challenge: FY2010 = 5% FY2011 = 10% FY2012 = 15% FY2013 = 20% STEP #2 8

9. University Main (UM) Campus Funding Methodology Course Completion Component: The remaining amount of SSI is allocated to the course completion component of the formula. Applied to undergraduate and master’s level only. Course completion = Grades A-D, M (making progress), Pass. The average course completion rate for each campus by Subject Field and Level is calculated: FY10 SSI: average completion rates of FY08 and FY09 FY11 SSI: average completion rates of FY08, FY09, FY10 The calculated completion rate is multiplied by the 2-yr or 5-yr average subsidy eligible student FTE. STEP #3 9

10. University Main Campuses SSI Formula Additional funds for course and degree completions of “at-risk” students. FY’10: At-risk defined as percentage of undergraduate students who are eligible for OIG or OCOG in any term being measured. Aggregated to the Discipline Area and Level by campus. 10

11. University Main Campuses SSI Formula Definition of “At Risk” Students for FY’11 & Beyond: Subsidy consultation recommendation at this time For Course Completion - Financial Need - Lack of Academic Preparation For Degree Completion - Financial Need -Lack of Academic Preparation -Race/Ethnicity -Age 11

12. University Main (UM) Campus Funding Methodology Allocate Specific Goals and Metrics: A portion of each campuses total SSI is available for redistribution based on each institutions’ relative progress and achievement of its institutional goals and metrics. FY2011 = Up to 1% (+/-) FY2012 = Up to 2% (+/-) FY2013 = Up to 3% (+/-) STEP #4 12

13. University Main Campuses SSI Formula Specific Goals and Metrics: In process of being determined by campuses and Chancellor’s office. Will be very specific to each campus. Will be in line with the USO’s Strategic Plan. The economic environment will be considered when determining reallocations. 13

14. University Main Campuses SSI Formula Doctoral Subsidy - over next 10 years phasing in a formula based upon degree completions, external funding and quality review measures. Medical subsidy - currently under review. Recommendations expected later this summer. Regional campuses - based on course completions and additional for ‘at-risk’ students. Degree completion maybe included in future years. 14