As Passed by the House 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-HOLLISTER-
SCHURING-SCHULER-HARTNETT-VESPER-WILSON-KRUPINSKI-VERICH- 9
FORD-SULLIVAN-KREBS-AMSTUTZ 10
_________________________________________________________________ 11
A B I L L
To amend sections 3345.01, 3354.09, 3355.06, and 13
3357.09 and to enact section 3333.32 of the 14
Revised Code and to amend Section 7.01 of Am. 16
Sub. H.B. 282 of the 123rd General Assembly, as
subsequently amended, to grant in-state tuition 18
rates and subsidies at certain public 19
institutions of higher education to residents of
contiguous states who are employed in Ohio and 20
whose employers contract to pay their tuition and 21
fees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 3345.01, 3354.09, 3355.06, and 25
3357.09 be amended and section 3333.32 of the Revised Code be 26
enacted to read as follows:
Sec. 3333.32. FOR PURPOSES OF STATE SUBSIDY AND TUITION 28
AND FEE SURCHARGES, A STUDENT ATTENDING A STATE UNIVERSITY LISTED 30
IN SECTION 3345.011 OF THE REVISED CODE, A COMMUNITY COLLEGE, A 32
TECHNICAL COLLEGE, A UNIVERSITY BRANCH, OR A STATE COMMUNITY 33
COLLEGE HAS RESIDENT STATUS IF ALL OF THE FOLLOWING CONDITIONS 34
APPLY:
(A) THE STUDENT RESIDES IN A CONTIGUOUS STATE. 37
(B) THE STUDENT IS EMPLOYED IN OHIO BY A BUSINESS, 40
ORGANIZATION, OR GOVERNMENT AGENCY LOCATED IN OHIO. 42
2
(C) THE EMPLOYER ENTERS INTO A CONTRACT WITH THE 45
INSTITUTION OF HIGHER EDUCATION UNDER WHICH THE EMPLOYER PAYS ALL 46
OF THE STUDENT'S TUITION AND FEES DIRECTLY TO THE INSTITUTION AND 47
AGREES NOT TO CHARGE OR SEEK REIMBURSEMENT FROM THE STUDENT IN 48
ANY MANNER FOR ANY PART OF THE TUITION AND FEES. 49
Sec. 3345.01. Except as provided in section SECTIONS 58
3333.17 AND 3333.32 of the Revised Code, the board of trustees of 60
a state university or college, as defined in section 3345.12 of 61
the Revised Code, may charge reasonable tuition for the
attendance of pupils who are nonresidents of Ohio. 62
Sec. 3354.09. The board of trustees of a community college 71
district may: 72
(A) Own and operate a community college, pursuant to an 74
official plan prepared and approved in accordance with section 75
3354.07 of the Revised Code, or enter into a contract with a 76
generally accredited public university or college for operation 77
of such community college by such university or college pursuant 78
to an official plan prepared and approved in accordance with 79
section 3354.07 of the Revised Code; 80
(B) Hold, encumber, control, acquire by donation, 82
purchase, or condemnation, construct, own, lease, use, and sell 83
real and personal property as is necessary for the conduct of the 84
program of the community college on whatever terms and for 85
whatever consideration may be appropriate for the purpose of the 86
college; 87
(C) Accept gifts, grants, bequests, and devises absolutely 89
or in trust for support of the college during the existence of 90
the college; 91
(D) Appoint the administrative officers, faculty, and 93
staff, necessary and proper for such community college, and fix 94
their compensation except in instances in which the board of 95
trustees has delegated such powers to a college or university 96
operating such community college pursuant to a contract entered 97
into by the board of trustees of the district; 98
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(E) Provide for a community college necessary lands, 100
buildings or other structures, equipment, means, and appliances; 101
(F) Develop and adopt, pursuant to the official plan, the 103
curricular programs identified in section 3354.01 of the Revised 104
Code as arts and sciences programs and technical programs, or 105
either. Such programs may include adult-education programs. 106
(G) Except as provided in section SECTIONS 3333.17 AND 108
3333.32 of the Revised Code, establish schedules of fees and 110
tuition for students who are residents of the district, residents 111
of Ohio but not of the district, and students who are 112
nonresidents of Ohio. The establishment of rules governing the 113
determination of residence shall be subject to approval of the 114
Ohio board of regents. Students who are nonresidents of Ohio 115
shall be required to pay higher rates of fees and tuition than 116
the rates required of students who are residents of Ohio but not 117
of the district, and students who are residents of the district 118
shall pay a smaller tuition and fee rate than the rate for either 119
category of nonresident students. 120
(H) Authorize, approve, ratify, or confirm any agreement 122
relating to any such community college with the United States 123
government, acting through any agency of such government 124
designated or created to aid in the financing of such projects, 125
or with any person or agency offering grants in aid in financing 126
such educational facilities or the operation of such facilities 127
except as prohibited in division (K) of this section. 128
Such agreement may include a provision for repayment of 130
advances, grants, or loans made to any community college district 131
from funds which may become available to it. 132
When the United States government or its agent makes a 134
grant of money to any community college district to aid in paying 135
the cost of any projects of such district, or enters into an 136
agreement with the community college district for the making of 137
any such grant of money, the amount thereof is deemed 138
appropriated for such purpose by the community college district 139
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and is deemed in process of collection within the meaning of 140
section 5705.41 of the Revised Code. 141
(I) Grant appropriate certificates of achievement to 143
students successfully completing the community college programs; 144
(J) Prescribe rules for the effective operation of a 146
community college and exercise such other powers as are necessary 147
for the efficient management of such college; 148
(K) Receive and expend gifts or grants from the state for 150
the payment of operating costs, for the acquisition, 151
construction, or improvement of buildings or other structures, or 152
for the acquisition or use of land. In no event shall state 153
gifts or grants be expended for the support of adult-education 154
programs. Gifts or grants from the state for operating costs 155
shall not in any biennium exceed the amount recommended by the 156
Ohio board of regents to the governor as provided in Chapter 157
3333. of the Revised Code. Such gifts or grants shall be 158
distributed to such districts in equal quarter-annual payments, 159
unless otherwise provided or authorized in any act appropriating 160
moneys for such purposes, on or before the last day of February, 161
May, August, and November in each year. 162
(L) Retain consultants in the fields of education, 164
planning, architecture, law, engineering, or other fields of 165
professional skill; 166
(M) Purchase: 168
(1) A policy or policies of insurance insuring the 170
district against loss of or damage to property, whether real, 171
personal, or mixed, which is owned by the district or leased by 172
it as lessee or which is in the process of construction by or for 173
the district; 174
(2) A policy or policies of fidelity insurance in such 176
amounts and covering such trustees, officers, and employees of 177
the district as it considers necessary or desirable; 178
(3) A policy or policies of liability insurance from an 180
insurer or insurers licensed to do business in this state 181
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insuring its members, officers, and employees against all civil 182
liability arising from an act or omission by the member, officer, 183
or employee when the member, officer, or employee is not acting 184
manifestly outside the scope of employment or official 185
responsibilities with the institution, with malicious purpose or 186
bad faith, or in a wanton or reckless manner, or may otherwise 187
provide for the indemnification of such persons against such 188
liability. All or any portion of the cost, premium, or charge 189
for such a policy or policies or indemnification payment may be 190
paid from any funds under the institution's control. The policy 191
or policies of liability insurance or the indemnification policy 192
of the institution may cover any risks including, but not limited 193
to, damages resulting from injury to property or person, 194
professional liability, and other special risks, including legal 195
fees and expenses incurred in the defense or settlement of claims 196
for such damages. 197
(4) A policy or policies of insurance insuring the 199
district against any liabilities to which it may be subject on 200
account of damage or injury to persons or property, including 201
liability for wrongful death. 202
(N) Designate one or more employees of the institution as 204
state university law enforcement officers, to serve and have 205
duties as prescribed in section 3345.04 of the Revised Code. 206
Any instrument by which real property is acquired pursuant 208
to this section shall identify the agency of the state that has 209
the use and benefit of the real property as specified in section 210
5301.012 of the Revised Code.
Sec. 3355.06. The managing authority of the university 219
branch district shall adopt its own rules governing proceedings, 220
designate the permanent place of business of the district, and 221
keep a record of all its proceedings. Such record shall be open 222
for public inspection during regular business hours at the 223
permanent place of business of the district. 224
The managing authority may: 226
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(A) Enter into a contract for a period of not less than 228
four nor more than ten years with a state or municipal university 229
for the operation of a university branch by such university on 230
the campus provided in accordance with sections 3355.01 to 231
3355.14 of the Revised Code. Except as provided in section 232
SECTIONS 3333.17 AND 3333.32 of the Revised Code, the contract 234
shall establish schedules of fees and tuition for: students who 236
are residents of the district; residents of Ohio but not of the 237
district; and students who are nonresidents of Ohio. Students 238
who are nonresidents of Ohio shall be required to pay higher 239
rates of fees and tuition than the rates required of students who 240
are residents of Ohio but not of the district, and students who 241
are residents of the district shall pay a smaller tuition and fee 242
rate than the rate for either category of nonresident students. 243
(B) Hold, encumber, control, acquire by donation, 245
purchase, or condemnation, construct, own, lease, use, and sell 246
real and personal property as is necessary for the creation and 247
maintenance of the university branch campus, on whatever terms 248
and for whatever consideration may be appropriate for the 249
purposes of the facility; 250
(C) Accept gifts, grants, bequests, and devises absolutely 252
or in trust for support of the university branch campus during 253
the existence of said branch; 254
(D) Receive an appropriation from any municipality or 256
county that is a part of the university branch district for the 257
purpose of providing funds for support of the university branch 258
campus; 259
(E) Receive and expend gifts or grants from the state for 261
the payment of operating costs, for the acquisition, 262
construction, or improvement of buildings or other structures, or 263
for the acquisition or use of land; 264
(F) Prescribe rules for the effective operation of a 266
university branch district college and exercise such other powers 267
as are necessary for the efficient management of such university 268
7
and are not in conflict with any contract entered into under 269
division (A) of this section. 270
Any instrument by which real property is acquired pursuant 272
to this section shall identify the agency of the state that has 273
the use and benefit of the real property as specified in section 274
5301.012 of the Revised Code.
Sec. 3357.09. The board of trustees of a technical college 283
district may: 284
(A) Own and operate a technical college, pursuant to an 286
official plan prepared and approved in accordance with section 287
3357.07 of the Revised Code; 288
(B) Hold, encumber, control, acquire by donation, 290
purchase, or condemnation, construct, own, lease, use, and sell, 291
real and personal property as necessary for the conduct of the 292
program of the technical college on whatever terms and for 293
whatever consideration may be appropriate for the purposes of the 294
institution; 295
(C) Accept gifts, grants, bequests, and devises absolutely 297
or in trust for support of the technical college; 298
(D) Appoint the president, faculty, and such other 300
employees as necessary and proper for such technical college, and 301
fix their compensation; 302
(E) Provide for a technical college necessary lands, 304
buildings or other structures, equipment, means, and appliances; 305
(F) Develop and adopt, pursuant to the official plan, any 307
one or more of the curricular programs identified in section 308
3357.01 of the Revised Code as technical-college programs, or 309
adult-education technical programs; 310
(G) Except as provided in section SECTIONS 3333.17 AND 312
3333.32 of the Revised Code, establish schedules of fees and 314
tuition for: students who are residents of the district; 315
students who are residents of Ohio but not of the district; 316
students who are nonresidents of Ohio. The establishment of 317
rules governing the determination of residence shall be subject 318
8
to approval of the Ohio board of regents. Students who are 319
nonresidents of Ohio shall be required to pay higher rates of 320
fees and tuition than the rates required of students who are 321
residents of Ohio but not of the district, and students who are 322
residents of the district shall pay smaller tuition and fee rates 323
than the rates for either of the above categories of nonresident 324
students, except that students who are residents of Ohio but not 325
of the district shall be required to pay higher fees and tuition 326
than students who are residents of the district only when a 327
district tax levy has been adopted and is in effect under the 328
authority of section 3357.11, 5705.19, or 5705.191 of the Revised 329
Code.
(H) Authorize, approve, ratify, or confirm, with approval 331
of the Ohio board of regents, any agreement with the United 332
States government, acting through any agency designated to aid in 333
the financing of technical college projects, or with any person, 334
organization, or agency offering grants-in-aid for technical 335
college facilities or operation; 336
(I) Receive assistance for the cost of equipment and for 338
the operation of such technical colleges from moneys appropriated 339
for technical education or for matching of Title VIII of the 340
"National Defense Education Act," 72 Stat. 1597 (1958), 20 341
U.S.C.A. 15a-15e. Moneys shall be distributed by the Ohio board 342
of regents in accordance with rules which the board shall 343
establish governing its allocations to technical colleges 344
chartered under section 3357.07 of the Revised Code. 345
(J) Grant appropriate associate degrees to students 347
successfully completing the technical college programs and 348
certificates of achievement to those students who complete other 349
programs; 350
(K) Prescribe rules for the effective operation of a 352
technical college, and exercise such other powers as are 353
necessary for the efficient management of such college; 354
(L) Enter into contracts and conduct technical college 356
9
programs or technical courses outside the technical college 357
district; 358
(M) Enter into contracts with the board of education of 360
any local, exempted village, or city school district or the 362
governing board of any educational service center to permit the
school district or service center to use the facilities of the 363
technical college district; 364
(N) Designate one or more employees of the institution as 366
state university law enforcement officers, to serve and have 367
duties as prescribed in section 3345.04 of the Revised Code; 368
(O) Subject to the approval of the Ohio board of regents, 370
offer technical college programs or technical courses for credit 371
at locations outside the technical college district. For 372
purposes of computing state aid, students enrolled in such 373
courses shall be deemed to be students enrolled in programs and 374
courses at off-campus locations in the district. 375
(P) Purchase a policy or policies of liability insurance 377
from an insurer or insurers licensed to do business in this state 378
insuring its members, officers, and employees against all civil 379
liability arising from an act or omission by the member, officer, 380
or employee, when the member, officer, or employee is not acting 381
manifestly outside the scope of the member's, officer's, or 382
employee's employment or official responsibilities with the 384
institution, with malicious purpose or bad faith, or in a wanton 385
or reckless manner, or may otherwise provide for the 386
indemnification of such persons against such liability. All or 387
any portion of the cost, premium, or charge for such a policy or 388
policies or indemnification payment may be paid from any funds 389
under the institution's control. The policy or policies of 390
liability insurance or the indemnification policy of the 391
institution may cover any risks including, but not limited to, 392
damages resulting from injury to property or person, professional 393
liability, and other special risks, including legal fees and 394
expenses incurred in the defense or settlement of claims for such 395
10
damages.
Any instrument by which real property is acquired pursuant 397
to this section shall identify the agency of the state that has 398
the use and benefit of the real property as specified in section 399
5301.012 of the Revised Code.
Section 2. That existing sections 3345.01, 3354.09, 401
3355.06, and 3357.09 of the Revised Code are hereby repealed. 402
Section 3. That Section 7.01 of Am. Sub. H.B. 282 of the 404
123rd General Assembly, as amended by Sub. S.B. 245 of the 123rd 405
General Assembly, be amended to read as follows: 406
"Sec. 7.01. Instructional Subsidy Formula 408
As soon as practicable during each fiscal year of the 410
1999-2001 biennium in accordance with instructions of the Ohio 411
Board of Regents, each state-assisted institution of higher 412
education shall report its actual enrollment to the Ohio Board of 413
Regents. 414
The Ohio Board of Regents shall establish procedures 416
required by the system of formulas set out below and for the 417
assignment of individual institutions to categories described in 418
the formulas. The system of formulas establishes the manner in 419
which aggregate expenditure requirements shall be determined for 420
each of the three components of institutional operations. In 421
addition to other adjustments and calculations described below, 422
the subsidy entitlement of an institution shall be determined by 423
subtracting from the institution's aggregate expenditure 424
requirements income to be derived from the local contributions 425
assumed in calculating the subsidy entitlements. The local 426
contributions for purposes of determining subsidy support shall 427
not limit the authority of the individual boards of trustees to 428
establish fee levels. 429
The General Studies and Technical models shall be adjusted 431
by the Board of Regents so that the share of state subsidy earned 432
by those models is not altered by changes in the overall local 433
share. A lower-division fee differential shall be used to 434
11
maintain the relationship that would have occurred between these 435
models and the Baccalaureate models had an assumed share of 436
thirty-seven per cent been funded. 437
In defining the number of full-time equivalent students for 439
state subsidy purposes, the Ohio Board of Regents shall exclude 440
all undergraduate students who are not residents of Ohio, except 441
those charged in-state fees in accordance with reciprocity 442
agreements made pursuant to section 3333.17 OR EMPLOYER CONTRACTS 443
ENTERED INTO PURSUANT TO SECTION 3333.32 of the Revised Code. 444
(A) Aggregate Expenditure Per Full-Time Equivalent Student 446
(1) Instruction and Support Services 448
Model FY 2000 FY 451
2001 452
General Studies I $ 3,680 $ 3,762 454
General Studies II $ 4,060 $ 4,305 456
General Studies III $ 5,141 $ 5,259 458
Technical I $ 4,702 $ 5,012 460
Technical III $ 8,088 $ 8,477 462
Baccalaureate I $ 6,301 $ 6,611 464
Baccalaureate II $ 7,287 $ 7,582 466
Baccalaureate III $ 10,417 $ 10,574 468
Masters and Professional I $ 11,788 $ 12,300 470
Masters and Professional II $ 17,020 $ 17,558 472
Masters and Professional III $ 22,976 $ 23,214 474
Doctoral I $ 19,495 $ 19,647 476
Doctoral II $ 25,066 $ 25,840 478
Medical I $ 27,250 $ 27,709 480
Medical II $ 38,309 $ 39,323 482
(2) Student Services 485
For this purpose full-time equivalent counts shall be 487
weighted to reflect differences among institutions in the numbers 488
of students enrolled on a part-time basis. 489
FY 2000 FY 2001 491
All Expenditure Models $ 556 $ 594 492
12
(B) Plant Operation and Maintenance (POM) 494
(1) Determination of the Square-Foot Based POM Subsidy 496
Space undergoing renovation shall be funded at the rate 498
allowed for storage space. 499
In the calculation of square footage for each campus, 501
square footage shall be weighted to reflect differences in space 502
utilization.
The space inventories for each campus shall be those 504
determined in the fiscal year 1997 instructional subsidy, 505
adjusted for changes attributable to the construction or 506
renovation of facilities for which state appropriations were made 507
or local commitments were made prior to January 1, 1995.
Only fifty per cent of the space permanently taken out of 509
operation in fiscal year 2000 or fiscal year 2001 that is not 510
otherwise replaced by a campus shall be deleted from the fiscal 511
year 1997 inventory.
The square-foot based plant operation and maintenance 513
subsidy for each campus shall be determined as follows: 514
(a) For each standard room type category shown below, the 516
subsidy-eligible net assignable square feet (NASF) for each 517
campus shall be multiplied by the following rates, and the 519
amounts summed for each campus to determine the total gross 520
square-foot based POM expenditure requirement:
FY 2000 FY 2001 522
Classrooms $5.18 $5.33 523
Laboratories $6.45 $6.64 524
Offices $5.18 $5.33 525
Audio Visual Data Processing $6.45 $6.64 526
Storage $2.30 $2.36 527
Circulation $6.53 $6.72 528
Other $5.18 $5.33 529
(b) The total gross square-foot POM expenditure 532
requirement shall be allocated to models in proportion to 533
full-time equivalent (FTE) enrollments as reported in enrollment 535
13
data for all models except Doctoral I and Doctoral II.
(c) The amounts allocated to models in division (B)(1)(b) 537
above shall be multiplied by the ratio of subsidy-eligible FTE 539
students to total FTE students reported in each model, and the 541
amounts summed for all models. To this total amount shall be 542
added an amount to support roads and grounds expenditures to
produce the total square-foot based POM subsidy. 543
(2) Determination of the Activity-Based POM Subsidy 545
(a) The number of subsidy-eligible FTE students in each 547
model shall be multiplied by the following rates for each campus 549
for each fiscal year.
FY 2000 FY 2001 552
General Studies I $ 488 $ 488 554
General Studies II $ 563 $ 584 556
General Studies III $1,237 $1,217 558
Technical I $ 555 $ 553 560
Technical II $1,128 $1,175 562
Baccalaureate I $ 641 $ 655 564
Baccalaureate II $1,067 $1,109 566
Baccalaureate III $1,578 $1,598 568
Masters and Professional I $ 995 $1,022 570
Masters and Professional II $1,742 $1,895 572
Masters and Professional III $2,620 $2,614 574
Doctoral I $1,433 $1,382 576
Doctoral II $2,502 $2,613 578
Medical I $2,389 $2,485 580
Medical II $3,458 $3,362 582
(b) The sum of the products for each campus determined in 585
division (B)(2)(a) for all models except Doctoral I and Doctoral 586
II for each fiscal year shall be weighted by a factor to reflect 587
sponsored research activity and job-training related public 588
services expenditures to determine the total activity-based POM 589
subsidy.
(C) Calculation of Core Subsidy Entitlements and 591
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Adjustments
(1) Calculation of Core Subsidy Entitlements 593
The calculation of the core subsidy entitlement shall 595
consist of the following components: 596
(a) For each campus and for each fiscal year, the core 598
subsidy entitlement shall be determined by multiplying the 599
amounts listed above in divisions (A)(1) and (2) and (B)(2) less 601
assumed local contributions, by (i) average subsidy-eligible 602
full-time equivalents for the two-year period ending in the prior 603
year for all models except Doctoral I and Doctoral II; and (ii)
average subsidy-eligible full-time equivalents for the five-year 605
period ending in the prior year for all models except Doctoral I 606
and Doctoral II.
(b) In calculating the core subsidy entitlements for 608
Medical II models only, the board shall use the following count 609
of full-time equivalent students in place of the two-year average 610
and five-year average of subsidy-eligible students. 612
(i) For those medical schools whose current year 614
enrollment is below the base enrollment, the Medical II full-time 615
equivalent enrollment shall equal: 65 per cent of the base 616
enrollment plus 35 per cent of the current year enrollment, where 617
the base enrollment is: 618
The Ohio State University 1010 620
University of Cincinnati 833 621
Medical College of Ohio at 622
Toledo 650
Wright State University 433 623
Ohio University 433 624
Northeastern Ohio Universities 625
College of Medicine 433
(ii) For those medical schools whose current year 628
enrollment is equal to or greater than the base enrollment, the 629
Medical II full-time equivalent enrollment shall equal the 630
current enrollment. 631
15
(c) For all FTE-based subsidy calculations involving 633
all-terms FTE data, FTE-based allowances shall be converted from 635
annualized to annual rates to ensure equity and consistency of 637
subsidy determination.
(d) The Board of Regents shall compute the sum of the two 640
calculations listed in division (C)(1)(a) above and use the
greater sum as the core subsidy entitlement. 641
The POM subsidy for each campus shall equal the greater of 643
the square-foot-based subsidy or the activity-based POM subsidy 644
component of the core subsidy entitlement, except that the total 646
activity-based POM subsidy shall not exceed 161 per cent of the 648
square-foot based POM subsidy in fiscal year 2000 and shall not 651
exceed 177 per cent of the square-foot-based subsidy in fiscal 652
year 2001. 653
(e) In fiscal year 2000, no more than 10.94 per cent of 655
the total instructional subsidy shall be reserved to implement 657
the recommendations of the Graduate Funding Commission. In 658
fiscal year 2001, no more than 10.75 per cent of the total 659
instructional subsidy shall be reserved for this same purpose. 660
It is the intent of the General Assembly that the doctoral 661
reserve be reduced 0.25 percentage points each year thereafter 662
until no more than 10.0 per cent of the total instructional 664
subsidy is reserved to implement the recommendations of the
Graduate Funding Commission. In fiscal year 2001, the Board of 665
Regents shall reallocate 2 per cent of the reserve among the 667
state-assisted universities on the basis of a quality review as
specified in the recommendations of the Graduate Funding 668
Commission.
The amount so reserved shall be allocated to universities 670
in proportion to their share of the total number of Doctoral I 671
equivalent FTEs as calculated on an institutional basis using the 673
greater of the two-year or five-year FTEs for the period fiscal 675
year 1994 through fiscal year 1998 with annualized FTEs for 676
fiscal years 1994 through 1997 and all-term FTEs for fiscal year 677
16
1998 as adjusted to reflect the effects of doctoral review. For 679
the purposes of this calculation, Doctoral I equivalent FTEs 680
shall equal the sum of Doctoral I FTEs plus 1.5 times the sum of 682
Doctoral II FTEs. No university shall receive less for doctoral 683
subsidy in fiscal year 2000 than it received for doctoral subsidy 684
in fiscal year 1999. 685
(2) Annual Guaranteed Funding Increase 687
For the purposes of this section, for each year and for 689
each campus "Challenge subsidies" shall equal the sum of the 690
following allocations:
(a) Access Challenge, less amounts attributed to tuition 692
restraint;
(b) Research Challenge; 694
(c) Priorities in Graduate Education; 696
(d) Success Challenge; 698
(e) Jobs Challenge, less amounts earmarked for 700
"strategically related industries." 701
In addition to and after the other adjustments noted above, 703
in fiscal year 2000 each campus shall have its subsidy adjusted 704
to the extent necessary to provide an amount from the 705
instructional subsidy and Challenge subsidies that is not less 706
than 103 per cent of the sum of the instructional subsidy and the 707
Challenge subsidies received by the campus in fiscal year 1999. 708
In fiscal year 2001 each campus shall have its subsidy adjusted 710
to the extent necessary to provide an amount from the 711
instructional subsidy and Challenge subsidies that is not less 712
than 101 per cent of the sum of the instructional subsidy and the
Challenge subsidies received by the campus in fiscal year 2000. 714
(3) Capital Component Deduction 716
After all other adjustments have been made, instructional 718
subsidy earnings shall be reduced for each campus by the amount, 719
if any, by which debt service charged in Am. H.B. No. 748 of the 720
121st General Assembly and Am. Sub. H.B. No. 850 of the 122nd 722
General Assembly for that campus exceeds that campus' capital 723
17
component earnings.
(D) Reductions in Earnings 725
If total systemwide instructional subsidy earnings in any 727
fiscal year exceed total appropriations available for such 728
purposes, the Board of Regents shall proportionately reduce the 729
instructional subsidy earnings for all campuses by a uniform 730
percentage so that the systemwide sum equals available 731
appropriations.
(E) Exceptional Circumstances 733
Adjustments may be made to instructional subsidy payments 735
and other subsidies distributed by the Ohio Board of Regents to 736
state-assisted colleges and universities for exceptional 737
circumstances. No adjustments for exceptional circumstances may 738
be made without the recommendation of the chancellor and the 739
approval of the Controlling Board. 740
Distribution of Instructional Subsidy 742
The instructional subsidy payments to the institutions 744
shall be in substantially equal monthly amounts during the fiscal 745
year, unless otherwise determined by the Director of Budget and 746
Management pursuant to the provisions of section 126.09 of the 747
Revised Code. Payments during the first six months of the fiscal 748
year shall be based upon the instructional subsidy appropriation 749
estimates made for the various institutions of higher education 750
according to the Ohio Board of Regents enrollment estimates. 751
Payments during the last six months of the fiscal year shall be 752
distributed after approval of the Controlling Board upon the 753
request of the Ohio Board of Regents. 754
Law School Subsidy 756
The instructional subsidy to state supported universities 758
for students enrolled in law schools in fiscal year 2000 and 759
fiscal year 2001 shall be calculated by using the number of 760
subsidy eligible full-time equivalent law school students funded 761
by state subsidy in fiscal year 1995 or the actual number of 762
subsidy eligible full-time equivalent law school students at the
18
institution in the fiscal year, whichever is less." 763
Section 4. That existing Section 7.01 of Am. Sub. H.B. 282 765
of the 123rd General Assembly, as amended by Sub. S.B. 245 of the 766
123rd General Assembly, is hereby repealed. 767