LSC and LBO brief House higher-education committee on funding formulas, OCOG and enrollments

Rachel Larson of the Legislative Service Commission and Ed Mullane of the Legislative Budget Office presented an overview of Ohio’s higher-education landscape, funding formulas and new budget programs to the House Higher Education Committee during a committee briefing.

Larson outlined institutional types in Ohio, saying state institutions, regional branch campuses, technical colleges, state community colleges and private institutions are all created and regulated under specific chapters of the Revised Code. She noted there are 14 state universities and that most public-student enrollment occurs on main university campuses.

Mullane described the State Share of Instruction (SSI), calling it “Ohio’s main operating subsidy” for public universities and colleges and noting the formula shifted to an outcomes focus in fiscal year 2015. He told the committee SSI expenditures totaled about $2.09 billion in fiscal year 2024 and that SSI per student reached $7,184 in FY2024, an increase of roughly 41% since FY2015. Mullane said the increase reflects both higher appropriations and lower overall enrollment.

Mullane gave sector-level SSI figures for FY2024: total SSI distribution of about $2.1 billion, with universities and regional campuses receiving roughly 77% (about $1.61 billion) and community and technical colleges receiving about $485 million. He also described set-asides for doctoral and medical programs and explained the community-college components that reward course completions, success points and degree/certificate completions.

On student aid, Mullane summarized the Ohio College Opportunity Grant (OCOG) eligibility and award framework, noting OCOG requires Ohio residency and attendance at an Ohio public or private institution, limits awards to the equivalent of roughly 10 semesters (15 quarters), and that House Bill 33 increased OCOG appropriations. Mullane stated the enacted budget included approximately $200 million each fiscal year for OCOG and that maximum awards vary by institution sector.

Committee members asked follow-up questions about enrollment trends and the budget. Representative Marilyn John asked whether declines were systemwide or concentrated; Mullane said the long-term decline spans about a decade with a slight upward trend beginning last year, but that changes vary by institution. Representative Munira Abdullahe requested additional data on potential drivers of enrollment decline (cost of living, access), and Representative Desiree Tims asked whether shifts reflect out-of-state enrollment or population migration; the chair said the Ohio Department of Higher Education (ODHE) witnesses would be asked to provide more detailed breakdowns.

The session began with brief procedural business: the chair established a quorum, appointed Ranking Member Piccolo Antonio as secretary after hearing no objections, and closed with brief thanks to presenters and distribution of binder materials that LSC/LBO staff will use as reference for committee members.

The committee did not take recorded votes on budget items during this briefing; members asked LSC and LBO to provide additional enrollment and OCOG trend data and follow-up materials.