As Reported by House Education Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 53 5
1999-2000 6
SENATORS CARNES-GARDNER-KEARNS-MUMPER-DRAKE-SPADA- 8
REPRESENTATIVES WINKLER-WIDENER-HARRIS-BRADING-BENDER
_________________________________________________________________ 9
A B I L L
To amend sections 3345.01, 3354.09, 3355.06, and 11
3357.09 and to enact section 3333.32 of the 12
Revised Code and to amend Section 7.01 of Am. 14
Sub. H.B. 282 of the 123rd General Assembly, as
subsequently amended, to grant in-state tuition 16
rates and subsidies at certain public 17
institutions of higher education to residents of
contiguous states who are employed in Ohio and 18
whose employers contract to pay their tuition and 19
fees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 3345.01, 3354.09, 3355.06, and 23
3357.09 be amended and section 3333.32 of the Revised Code be 24
enacted to read as follows:
Sec. 3333.32. FOR PURPOSES OF STATE SUBSIDY AND TUITION 26
AND FEE SURCHARGES, A STUDENT ATTENDING A STATE UNIVERSITY LISTED 28
IN SECTION 3345.011 OF THE REVISED CODE, A COMMUNITY COLLEGE, A 30
TECHNICAL COLLEGE, A UNIVERSITY BRANCH, OR A STATE COMMUNITY 31
COLLEGE HAS RESIDENT STATUS IF ALL OF THE FOLLOWING CONDITIONS 32
APPLY:
(A) THE STUDENT RESIDES IN A CONTIGUOUS STATE. 35
(B) THE STUDENT IS EMPLOYED IN OHIO BY A BUSINESS, 38
ORGANIZATION, OR GOVERNMENT AGENCY LOCATED IN OHIO. 40
(C) THE EMPLOYER ENTERS INTO A CONTRACT WITH THE 43
INSTITUTION OF HIGHER EDUCATION UNDER WHICH THE EMPLOYER PAYS ALL 44
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OF THE STUDENT'S TUITION AND FEES DIRECTLY TO THE INSTITUTION AND 45
AGREES NOT TO CHARGE OR SEEK REIMBURSEMENT FROM THE STUDENT IN 46
ANY MANNER FOR ANY PART OF THE TUITION AND FEES. 47
Sec. 3345.01. Except as provided in section SECTIONS 56
3333.17 AND 3333.32 of the Revised Code, the board of trustees of 58
a state university or college, as defined in section 3345.12 of 59
the Revised Code, may charge reasonable tuition for the
attendance of pupils who are nonresidents of Ohio. 60
Sec. 3354.09. The board of trustees of a community college 69
district may: 70
(A) Own and operate a community college, pursuant to an 72
official plan prepared and approved in accordance with section 73
3354.07 of the Revised Code, or enter into a contract with a 74
generally accredited public university or college for operation 75
of such community college by such university or college pursuant 76
to an official plan prepared and approved in accordance with 77
section 3354.07 of the Revised Code; 78
(B) Hold, encumber, control, acquire by donation, 80
purchase, or condemnation, construct, own, lease, use, and sell 81
real and personal property as is necessary for the conduct of the 82
program of the community college on whatever terms and for 83
whatever consideration may be appropriate for the purpose of the 84
college; 85
(C) Accept gifts, grants, bequests, and devises absolutely 87
or in trust for support of the college during the existence of 88
the college; 89
(D) Appoint the administrative officers, faculty, and 91
staff, necessary and proper for such community college, and fix 92
their compensation except in instances in which the board of 93
trustees has delegated such powers to a college or university 94
operating such community college pursuant to a contract entered 95
into by the board of trustees of the district; 96
(E) Provide for a community college necessary lands, 98
buildings or other structures, equipment, means, and appliances; 99
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(F) Develop and adopt, pursuant to the official plan, the 101
curricular programs identified in section 3354.01 of the Revised 102
Code as arts and sciences programs and technical programs, or 103
either. Such programs may include adult-education programs. 104
(G) Except as provided in section SECTIONS 3333.17 AND 106
3333.32 of the Revised Code, establish schedules of fees and 108
tuition for students who are residents of the district, residents 109
of Ohio but not of the district, and students who are 110
nonresidents of Ohio. The establishment of rules governing the 111
determination of residence shall be subject to approval of the 112
Ohio board of regents. Students who are nonresidents of Ohio 113
shall be required to pay higher rates of fees and tuition than 114
the rates required of students who are residents of Ohio but not 115
of the district, and students who are residents of the district 116
shall pay a smaller tuition and fee rate than the rate for either 117
category of nonresident students. 118
(H) Authorize, approve, ratify, or confirm any agreement 120
relating to any such community college with the United States 121
government, acting through any agency of such government 122
designated or created to aid in the financing of such projects, 123
or with any person or agency offering grants in aid in financing 124
such educational facilities or the operation of such facilities 125
except as prohibited in division (K) of this section. 126
Such agreement may include a provision for repayment of 128
advances, grants, or loans made to any community college district 129
from funds which may become available to it. 130
When the United States government or its agent makes a 132
grant of money to any community college district to aid in paying 133
the cost of any projects of such district, or enters into an 134
agreement with the community college district for the making of 135
any such grant of money, the amount thereof is deemed 136
appropriated for such purpose by the community college district 137
and is deemed in process of collection within the meaning of 138
section 5705.41 of the Revised Code. 139
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(I) Grant appropriate certificates of achievement to 141
students successfully completing the community college programs; 142
(J) Prescribe rules for the effective operation of a 144
community college and exercise such other powers as are necessary 145
for the efficient management of such college; 146
(K) Receive and expend gifts or grants from the state for 148
the payment of operating costs, for the acquisition, 149
construction, or improvement of buildings or other structures, or 150
for the acquisition or use of land. In no event shall state 151
gifts or grants be expended for the support of adult-education 152
programs. Gifts or grants from the state for operating costs 153
shall not in any biennium exceed the amount recommended by the 154
Ohio board of regents to the governor as provided in Chapter 155
3333. of the Revised Code. Such gifts or grants shall be 156
distributed to such districts in equal quarter-annual payments, 157
unless otherwise provided or authorized in any act appropriating 158
moneys for such purposes, on or before the last day of February, 159
May, August, and November in each year. 160
(L) Retain consultants in the fields of education, 162
planning, architecture, law, engineering, or other fields of 163
professional skill; 164
(M) Purchase: 166
(1) A policy or policies of insurance insuring the 168
district against loss of or damage to property, whether real, 169
personal, or mixed, which is owned by the district or leased by 170
it as lessee or which is in the process of construction by or for 171
the district; 172
(2) A policy or policies of fidelity insurance in such 174
amounts and covering such trustees, officers, and employees of 175
the district as it considers necessary or desirable; 176
(3) A policy or policies of liability insurance from an 178
insurer or insurers licensed to do business in this state 179
insuring its members, officers, and employees against all civil 180
liability arising from an act or omission by the member, officer, 181
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or employee when the member, officer, or employee is not acting 182
manifestly outside the scope of employment or official 183
responsibilities with the institution, with malicious purpose or 184
bad faith, or in a wanton or reckless manner, or may otherwise 185
provide for the indemnification of such persons against such 186
liability. All or any portion of the cost, premium, or charge 187
for such a policy or policies or indemnification payment may be 188
paid from any funds under the institution's control. The policy 189
or policies of liability insurance or the indemnification policy 190
of the institution may cover any risks including, but not limited 191
to, damages resulting from injury to property or person, 192
professional liability, and other special risks, including legal 193
fees and expenses incurred in the defense or settlement of claims 194
for such damages. 195
(4) A policy or policies of insurance insuring the 197
district against any liabilities to which it may be subject on 198
account of damage or injury to persons or property, including 199
liability for wrongful death. 200
(N) Designate one or more employees of the institution as 202
state university law enforcement officers, to serve and have 203
duties as prescribed in section 3345.04 of the Revised Code. 204
Any instrument by which real property is acquired pursuant 206
to this section shall identify the agency of the state that has 207
the use and benefit of the real property as specified in section 208
5301.012 of the Revised Code.
Sec. 3355.06. The managing authority of the university 217
branch district shall adopt its own rules governing proceedings, 218
designate the permanent place of business of the district, and 219
keep a record of all its proceedings. Such record shall be open 220
for public inspection during regular business hours at the 221
permanent place of business of the district. 222
The managing authority may: 224
(A) Enter into a contract for a period of not less than 226
four nor more than ten years with a state or municipal university 227
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for the operation of a university branch by such university on 228
the campus provided in accordance with sections 3355.01 to 229
3355.14 of the Revised Code. Except as provided in section 230
SECTIONS 3333.17 AND 3333.32 of the Revised Code, the contract 232
shall establish schedules of fees and tuition for: students who 234
are residents of the district; residents of Ohio but not of the 235
district; and students who are nonresidents of Ohio. Students 236
who are nonresidents of Ohio shall be required to pay higher 237
rates of fees and tuition than the rates required of students who 238
are residents of Ohio but not of the district, and students who 239
are residents of the district shall pay a smaller tuition and fee 240
rate than the rate for either category of nonresident students. 241
(B) Hold, encumber, control, acquire by donation, 243
purchase, or condemnation, construct, own, lease, use, and sell 244
real and personal property as is necessary for the creation and 245
maintenance of the university branch campus, on whatever terms 246
and for whatever consideration may be appropriate for the 247
purposes of the facility; 248
(C) Accept gifts, grants, bequests, and devises absolutely 250
or in trust for support of the university branch campus during 251
the existence of said branch; 252
(D) Receive an appropriation from any municipality or 254
county that is a part of the university branch district for the 255
purpose of providing funds for support of the university branch 256
campus; 257
(E) Receive and expend gifts or grants from the state for 259
the payment of operating costs, for the acquisition, 260
construction, or improvement of buildings or other structures, or 261
for the acquisition or use of land; 262
(F) Prescribe rules for the effective operation of a 264
university branch district college and exercise such other powers 265
as are necessary for the efficient management of such university 266
and are not in conflict with any contract entered into under 267
division (A) of this section. 268
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Any instrument by which real property is acquired pursuant 270
to this section shall identify the agency of the state that has 271
the use and benefit of the real property as specified in section 272
5301.012 of the Revised Code.
Sec. 3357.09. The board of trustees of a technical college 281
district may: 282
(A) Own and operate a technical college, pursuant to an 284
official plan prepared and approved in accordance with section 285
3357.07 of the Revised Code; 286
(B) Hold, encumber, control, acquire by donation, 288
purchase, or condemnation, construct, own, lease, use, and sell, 289
real and personal property as necessary for the conduct of the 290
program of the technical college on whatever terms and for 291
whatever consideration may be appropriate for the purposes of the 292
institution; 293
(C) Accept gifts, grants, bequests, and devises absolutely 295
or in trust for support of the technical college; 296
(D) Appoint the president, faculty, and such other 298
employees as necessary and proper for such technical college, and 299
fix their compensation; 300
(E) Provide for a technical college necessary lands, 302
buildings or other structures, equipment, means, and appliances; 303
(F) Develop and adopt, pursuant to the official plan, any 305
one or more of the curricular programs identified in section 306
3357.01 of the Revised Code as technical-college programs, or 307
adult-education technical programs; 308
(G) Except as provided in section SECTIONS 3333.17 AND 310
3333.32 of the Revised Code, establish schedules of fees and 312
tuition for: students who are residents of the district; 313
students who are residents of Ohio but not of the district; 314
students who are nonresidents of Ohio. The establishment of 315
rules governing the determination of residence shall be subject 316
to approval of the Ohio board of regents. Students who are 317
nonresidents of Ohio shall be required to pay higher rates of 318
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fees and tuition than the rates required of students who are 319
residents of Ohio but not of the district, and students who are 320
residents of the district shall pay smaller tuition and fee rates 321
than the rates for either of the above categories of nonresident 322
students, except that students who are residents of Ohio but not 323
of the district shall be required to pay higher fees and tuition 324
than students who are residents of the district only when a 325
district tax levy has been adopted and is in effect under the 326
authority of section 3357.11, 5705.19, or 5705.191 of the Revised 327
Code.
(H) Authorize, approve, ratify, or confirm, with approval 329
of the Ohio board of regents, any agreement with the United 330
States government, acting through any agency designated to aid in 331
the financing of technical college projects, or with any person, 332
organization, or agency offering grants-in-aid for technical 333
college facilities or operation; 334
(I) Receive assistance for the cost of equipment and for 336
the operation of such technical colleges from moneys appropriated 337
for technical education or for matching of Title VIII of the 338
"National Defense Education Act," 72 Stat. 1597 (1958), 20 339
U.S.C.A. 15a-15e. Moneys shall be distributed by the Ohio board 340
of regents in accordance with rules which the board shall 341
establish governing its allocations to technical colleges 342
chartered under section 3357.07 of the Revised Code. 343
(J) Grant appropriate associate degrees to students 345
successfully completing the technical college programs and 346
certificates of achievement to those students who complete other 347
programs; 348
(K) Prescribe rules for the effective operation of a 350
technical college, and exercise such other powers as are 351
necessary for the efficient management of such college; 352
(L) Enter into contracts and conduct technical college 354
programs or technical courses outside the technical college 355
district; 356
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(M) Enter into contracts with the board of education of 358
any local, exempted village, or city school district or the 360
governing board of any educational service center to permit the
school district or service center to use the facilities of the 361
technical college district; 362
(N) Designate one or more employees of the institution as 364
state university law enforcement officers, to serve and have 365
duties as prescribed in section 3345.04 of the Revised Code; 366
(O) Subject to the approval of the Ohio board of regents, 368
offer technical college programs or technical courses for credit 369
at locations outside the technical college district. For 370
purposes of computing state aid, students enrolled in such 371
courses shall be deemed to be students enrolled in programs and 372
courses at off-campus locations in the district. 373
(P) Purchase a policy or policies of liability insurance 375
from an insurer or insurers licensed to do business in this state 376
insuring its members, officers, and employees against all civil 377
liability arising from an act or omission by the member, officer, 378
or employee, when the member, officer, or employee is not acting 379
manifestly outside the scope of the member's, officer's, or 380
employee's employment or official responsibilities with the 382
institution, with malicious purpose or bad faith, or in a wanton 383
or reckless manner, or may otherwise provide for the 384
indemnification of such persons against such liability. All or 385
any portion of the cost, premium, or charge for such a policy or 386
policies or indemnification payment may be paid from any funds 387
under the institution's control. The policy or policies of 388
liability insurance or the indemnification policy of the 389
institution may cover any risks including, but not limited to, 390
damages resulting from injury to property or person, professional 391
liability, and other special risks, including legal fees and 392
expenses incurred in the defense or settlement of claims for such 393
damages.
Any instrument by which real property is acquired pursuant 395
10
to this section shall identify the agency of the state that has 396
the use and benefit of the real property as specified in section 397
5301.012 of the Revised Code.
Section 2. That existing sections 3345.01, 3354.09, 399
3355.06, and 3357.09 of the Revised Code are hereby repealed. 400
Section 3. That Section 7.01 of Am. Sub. H.B. 282 of the 402
123rd General Assembly, as amended by Sub. S.B. 245 of the 123rd 403
General Assembly, be amended to read as follows: 404
"Sec. 7.01. Instructional Subsidy Formula 406
As soon as practicable during each fiscal year of the 408
1999-2001 biennium in accordance with instructions of the Ohio 409
Board of Regents, each state-assisted institution of higher 410
education shall report its actual enrollment to the Ohio Board of 411
Regents. 412
The Ohio Board of Regents shall establish procedures 414
required by the system of formulas set out below and for the 415
assignment of individual institutions to categories described in 416
the formulas. The system of formulas establishes the manner in 417
which aggregate expenditure requirements shall be determined for 418
each of the three components of institutional operations. In 419
addition to other adjustments and calculations described below, 420
the subsidy entitlement of an institution shall be determined by 421
subtracting from the institution's aggregate expenditure 422
requirements income to be derived from the local contributions 423
assumed in calculating the subsidy entitlements. The local 424
contributions for purposes of determining subsidy support shall 425
not limit the authority of the individual boards of trustees to 426
establish fee levels. 427
The General Studies and Technical models shall be adjusted 429
by the Board of Regents so that the share of state subsidy earned 430
by those models is not altered by changes in the overall local 431
share. A lower-division fee differential shall be used to 432
maintain the relationship that would have occurred between these 433
models and the Baccalaureate models had an assumed share of 434
11
thirty-seven per cent been funded. 435
In defining the number of full-time equivalent students for 437
state subsidy purposes, the Ohio Board of Regents shall exclude 438
all undergraduate students who are not residents of Ohio, except 439
those charged in-state fees in accordance with reciprocity 440
agreements made pursuant to section 3333.17 OR EMPLOYER CONTRACTS 441
ENTERED INTO PURSUANT TO SECTION 3333.32 of the Revised Code. 442
(A) Aggregate Expenditure Per Full-Time Equivalent Student 444
(1) Instruction and Support Services 446
Model FY 2000 FY 449
2001 450
General Studies I $ 3,680 $ 3,762 452
General Studies II $ 4,060 $ 4,305 454
General Studies III $ 5,141 $ 5,259 456
Technical I $ 4,702 $ 5,012 458
Technical III $ 8,088 $ 8,477 460
Baccalaureate I $ 6,301 $ 6,611 462
Baccalaureate II $ 7,287 $ 7,582 464
Baccalaureate III $ 10,417 $ 10,574 466
Masters and Professional I $ 11,788 $ 12,300 468
Masters and Professional II $ 17,020 $ 17,558 470
Masters and Professional III $ 22,976 $ 23,214 472
Doctoral I $ 19,495 $ 19,647 474
Doctoral II $ 25,066 $ 25,840 476
Medical I $ 27,250 $ 27,709 478
Medical II $ 38,309 $ 39,323 480
(2) Student Services 483
For this purpose full-time equivalent counts shall be 485
weighted to reflect differences among institutions in the numbers 486
of students enrolled on a part-time basis. 487
FY 2000 FY 2001 489
All Expenditure Models $ 556 $ 594 490
(B) Plant Operation and Maintenance (POM) 492
(1) Determination of the Square-Foot Based POM Subsidy 494
12
Space undergoing renovation shall be funded at the rate 496
allowed for storage space. 497
In the calculation of square footage for each campus, 499
square footage shall be weighted to reflect differences in space 500
utilization.
The space inventories for each campus shall be those 502
determined in the fiscal year 1997 instructional subsidy, 503
adjusted for changes attributable to the construction or 504
renovation of facilities for which state appropriations were made 505
or local commitments were made prior to January 1, 1995.
Only fifty per cent of the space permanently taken out of 507
operation in fiscal year 2000 or fiscal year 2001 that is not 508
otherwise replaced by a campus shall be deleted from the fiscal 509
year 1997 inventory.
The square-foot based plant operation and maintenance 511
subsidy for each campus shall be determined as follows: 512
(a) For each standard room type category shown below, the 514
subsidy-eligible net assignable square feet (NASF) for each 515
campus shall be multiplied by the following rates, and the 517
amounts summed for each campus to determine the total gross 518
square-foot based POM expenditure requirement:
FY 2000 FY 2001 520
Classrooms $5.18 $5.33 521
Laboratories $6.45 $6.64 522
Offices $5.18 $5.33 523
Audio Visual Data Processing $6.45 $6.64 524
Storage $2.30 $2.36 525
Circulation $6.53 $6.72 526
Other $5.18 $5.33 527
(b) The total gross square-foot POM expenditure 530
requirement shall be allocated to models in proportion to 531
full-time equivalent (FTE) enrollments as reported in enrollment 533
data for all models except Doctoral I and Doctoral II.
(c) The amounts allocated to models in division (B)(1)(b) 535
13
above shall be multiplied by the ratio of subsidy-eligible FTE 537
students to total FTE students reported in each model, and the 539
amounts summed for all models. To this total amount shall be 540
added an amount to support roads and grounds expenditures to
produce the total square-foot based POM subsidy. 541
(2) Determination of the Activity-Based POM Subsidy 543
(a) The number of subsidy-eligible FTE students in each 545
model shall be multiplied by the following rates for each campus 547
for each fiscal year.
FY 2000 FY 2001 550
General Studies I $ 488 $ 488 552
General Studies II $ 563 $ 584 554
General Studies III $1,237 $1,217 556
Technical I $ 555 $ 553 558
Technical II $1,128 $1,175 560
Baccalaureate I $ 641 $ 655 562
Baccalaureate II $1,067 $1,109 564
Baccalaureate III $1,578 $1,598 566
Masters and Professional I $ 995 $1,022 568
Masters and Professional II $1,742 $1,895 570
Masters and Professional III $2,620 $2,614 572
Doctoral I $1,433 $1,382 574
Doctoral II $2,502 $2,613 576
Medical I $2,389 $2,485 578
Medical II $3,458 $3,362 580
(b) The sum of the products for each campus determined in 583
division (B)(2)(a) for all models except Doctoral I and Doctoral 584
II for each fiscal year shall be weighted by a factor to reflect 585
sponsored research activity and job-training related public 586
services expenditures to determine the total activity-based POM 587
subsidy.
(C) Calculation of Core Subsidy Entitlements and 589
Adjustments
(1) Calculation of Core Subsidy Entitlements 591
14
The calculation of the core subsidy entitlement shall 593
consist of the following components: 594
(a) For each campus and for each fiscal year, the core 596
subsidy entitlement shall be determined by multiplying the 597
amounts listed above in divisions (A)(1) and (2) and (B)(2) less 599
assumed local contributions, by (i) average subsidy-eligible 600
full-time equivalents for the two-year period ending in the prior 601
year for all models except Doctoral I and Doctoral II; and (ii)
average subsidy-eligible full-time equivalents for the five-year 603
period ending in the prior year for all models except Doctoral I 604
and Doctoral II.
(b) In calculating the core subsidy entitlements for 606
Medical II models only, the board shall use the following count 607
of full-time equivalent students in place of the two-year average 608
and five-year average of subsidy-eligible students. 610
(i) For those medical schools whose current year 612
enrollment is below the base enrollment, the Medical II full-time 613
equivalent enrollment shall equal: 65 per cent of the base 614
enrollment plus 35 per cent of the current year enrollment, where 615
the base enrollment is: 616
The Ohio State University 1010 618
University of Cincinnati 833 619
Medical College of Ohio at 620
Toledo 650
Wright State University 433 621
Ohio University 433 622
Northeastern Ohio Universities 623
College of Medicine 433
(ii) For those medical schools whose current year 626
enrollment is equal to or greater than the base enrollment, the 627
Medical II full-time equivalent enrollment shall equal the 628
current enrollment. 629
(c) For all FTE-based subsidy calculations involving 631
all-terms FTE data, FTE-based allowances shall be converted from 633
15
annualized to annual rates to ensure equity and consistency of 635
subsidy determination.
(d) The Board of Regents shall compute the sum of the two 638
calculations listed in division (C)(1)(a) above and use the
greater sum as the core subsidy entitlement. 639
The POM subsidy for each campus shall equal the greater of 641
the square-foot-based subsidy or the activity-based POM subsidy 642
component of the core subsidy entitlement, except that the total 644
activity-based POM subsidy shall not exceed 161 per cent of the 646
square-foot based POM subsidy in fiscal year 2000 and shall not 649
exceed 177 per cent of the square-foot-based subsidy in fiscal 650
year 2001. 651
(e) In fiscal year 2000, no more than 10.94 per cent of 653
the total instructional subsidy shall be reserved to implement 655
the recommendations of the Graduate Funding Commission. In 656
fiscal year 2001, no more than 10.75 per cent of the total 657
instructional subsidy shall be reserved for this same purpose. 658
It is the intent of the General Assembly that the doctoral 659
reserve be reduced 0.25 percentage points each year thereafter 660
until no more than 10.0 per cent of the total instructional 662
subsidy is reserved to implement the recommendations of the
Graduate Funding Commission. In fiscal year 2001, the Board of 663
Regents shall reallocate 2 per cent of the reserve among the 665
state-assisted universities on the basis of a quality review as
specified in the recommendations of the Graduate Funding 666
Commission.
The amount so reserved shall be allocated to universities 668
in proportion to their share of the total number of Doctoral I 669
equivalent FTEs as calculated on an institutional basis using the 671
greater of the two-year or five-year FTEs for the period fiscal 673
year 1994 through fiscal year 1998 with annualized FTEs for 674
fiscal years 1994 through 1997 and all-term FTEs for fiscal year 675
1998 as adjusted to reflect the effects of doctoral review. For 677
the purposes of this calculation, Doctoral I equivalent FTEs 678
16
shall equal the sum of Doctoral I FTEs plus 1.5 times the sum of 680
Doctoral II FTEs. No university shall receive less for doctoral 681
subsidy in fiscal year 2000 than it received for doctoral subsidy 682
in fiscal year 1999. 683
(2) Annual Guaranteed Funding Increase 685
For the purposes of this section, for each year and for 687
each campus "Challenge subsidies" shall equal the sum of the 688
following allocations:
(a) Access Challenge, less amounts attributed to tuition 690
restraint;
(b) Research Challenge; 692
(c) Priorities in Graduate Education; 694
(d) Success Challenge; 696
(e) Jobs Challenge, less amounts earmarked for 698
"strategically related industries." 699
In addition to and after the other adjustments noted above, 701
in fiscal year 2000 each campus shall have its subsidy adjusted 702
to the extent necessary to provide an amount from the 703
instructional subsidy and Challenge subsidies that is not less 704
than 103 per cent of the sum of the instructional subsidy and the 705
Challenge subsidies received by the campus in fiscal year 1999. 706
In fiscal year 2001 each campus shall have its subsidy adjusted 708
to the extent necessary to provide an amount from the 709
instructional subsidy and Challenge subsidies that is not less 710
than 101 per cent of the sum of the instructional subsidy and the
Challenge subsidies received by the campus in fiscal year 2000. 712
(3) Capital Component Deduction 714
After all other adjustments have been made, instructional 716
subsidy earnings shall be reduced for each campus by the amount, 717
if any, by which debt service charged in Am. H.B. No. 748 of the 718
121st General Assembly and Am. Sub. H.B. No. 850 of the 122nd 720
General Assembly for that campus exceeds that campus' capital 721
component earnings.
(D) Reductions in Earnings 723
17
If total systemwide instructional subsidy earnings in any 725
fiscal year exceed total appropriations available for such 726
purposes, the Board of Regents shall proportionately reduce the 727
instructional subsidy earnings for all campuses by a uniform 728
percentage so that the systemwide sum equals available 729
appropriations.
(E) Exceptional Circumstances 731
Adjustments may be made to instructional subsidy payments 733
and other subsidies distributed by the Ohio Board of Regents to 734
state-assisted colleges and universities for exceptional 735
circumstances. No adjustments for exceptional circumstances may 736
be made without the recommendation of the chancellor and the 737
approval of the Controlling Board. 738
Distribution of Instructional Subsidy 740
The instructional subsidy payments to the institutions 742
shall be in substantially equal monthly amounts during the fiscal 743
year, unless otherwise determined by the Director of Budget and 744
Management pursuant to the provisions of section 126.09 of the 745
Revised Code. Payments during the first six months of the fiscal 746
year shall be based upon the instructional subsidy appropriation 747
estimates made for the various institutions of higher education 748
according to the Ohio Board of Regents enrollment estimates. 749
Payments during the last six months of the fiscal year shall be 750
distributed after approval of the Controlling Board upon the 751
request of the Ohio Board of Regents. 752
Law School Subsidy 754
The instructional subsidy to state supported universities 756
for students enrolled in law schools in fiscal year 2000 and 757
fiscal year 2001 shall be calculated by using the number of 758
subsidy eligible full-time equivalent law school students funded 759
by state subsidy in fiscal year 1995 or the actual number of 760
subsidy eligible full-time equivalent law school students at the
institution in the fiscal year, whichever is less." 761
Section 4. That existing Section 7.01 of Am. Sub. H.B. 282 763
18
of the 123rd General Assembly, as amended by Sub. S.B. 245 of the 764
123rd General Assembly, is hereby repealed. 765