Public colleges would be able to charge students more money under the Ohio Senate’s new budget plan.
Current state law requires Ohio’s 14 four-year universities to adhere to a cap on tuition and fee rate increases set by lawmakers for each new first-year class. That amount stays flat for that group for four years, allowing them to plan and pay for classes.
Under the Senate’s proposal, this cap could rise to 4% for students beginning in the 2025-26 and 2026-27 academic years. The House lawmakers’ budget calls for keeping it at the current rate of 3%.
Ohioans paid an average of $10,900 in tuition and fees for one year at a state university, according to the most recently available federal data.
The Senate’s proposal also would impact those attending the state’s 22 community colleges. The plan would allow schools to increase the amount of money students pay for instructional and general fees by up to $10 per credit hour. That’s double the rate Ohio Gov. Mike DeWine and House lawmakers each included in their respective budget plans.
Columbus State Community College, the state’s largest two-year public, charges about $183 per credit hour. It amounts to nearly $5,500 for a full academic year.
All three state budget proposals call for boosting the Ohio College Opportunity Grant. That provides money to the state’s poorest students, which could help offset potential increases.
Many of the state’s public colleges continue to deal with enrollment declines, changing demographics, and a shifting public view on higher education – all of which can mean fewer tuition dollars flowing into institutions.
But lots of college students are also dealing with their own financial struggles. Nationwide, the average student at a public university takes out about $32,000 in student loans to pay for a bachelor’s degree. That’s nearly four times higher than what graduates owed in 1990.
Now, state senators and representatives must work together to agree on a final version of their combined proposals. They’ll then send it to DeWine, who must sign it by June 30.
Senate calls for slight boost to State Share of Instruction
Getting more money in this budget cycle was a big priority for college leaders. Ohio Department of Higher Education Chancellor Mike Duffey asked university presidents to hold off on any potential tuition increases until lawmakers finalized the budget, according to public records Signal Ohio requested and reviewed.
“This kind of action can…offend the sensibilities of the legislature when it occurs before the budget has officially become law,” he wrote in a March 4 letter. “It typically results in media coverage.”
The lobbying group backing the state’s four-year universities specifically asked senators for that 3% tuition cap to be removed. It would help institutions “properly maintain necessary goods and services” amid rising inflation costs, Inter-University Council president and CEO Laura Lanese told lawmakers last month.
The IUC also wanted an increase in funding through the funding formula called the State Share of Instruction (or SSI). The bulk of taxpayer money public higher education institutions receive is determined through that calculation. It’s largely based on student outcomes.
House lawmakers’ budget proposal included a 2% bump – smaller than the current rate of inflation – to the SSI. Lobbyists for the universities wanted senators to do the same. State support in Ohio has decreased over the past few decades.
In the end, Senate lawmakers chose to give less funding than House lawmakers – but a higher amount than the governor’s flat year-over-year proposal.
Linking SSI to Senate Bill 1
State senators also want to tie some of that SSI money to make institutions comply with Senate Bill 1. The new higher education law overhaul requires colleges to end diversity, equity and inclusion (or DEI) work and implement a new mandatory American civics course.
Public institutions are already required to adhere to those rules, though. Many are making changes before the legislation officially takes effect June 27.
House Speaker Matt Huffman told reporters Wednesday he supported incentivizing compliance. He said the law “isn’t just about the DEI issues.”
“If the universities aren’t going to apply state law, then there needs to be some incentive to make sure that they do,” he said.
This story was updated to clarify that only the House lawmakers’ budget proposal included a call to cap tuition rates at 3%.
