The College Fix

After months of chatter about “charter universities” for Ohio’s higher education system, the Board of Regents has proposed a plan sure to change the way universities do business.

The plan, which calls for a multi-tiered system to categorize universities as “enterprise universities” would free colleges from what the Ohio Board of Regents describes as “archaic” and “duplicative” mandates and regulations. The exchange would be, in broad terms, less funding for more freedom.

It could be implemented as early as July 2012.

But before Ohio jumps into the charter program, institutions and the Ohio legislature will debate and examine the proposal.

Miami University, which could qualify for the highest level of mandate relief with “International Enterprise University” status, is still weighing the benefits of the program.

“What we’ve received doesn’t provide a lot of detail,” Vice President of Business Services David Creamer said. “We continue to monitor, it’s a significant proposal. Before any decision would be made there would be a good bit of deliberation with the Board of Trustees, faculty, staff and students.”

Creamer said he is unsure if Miami will decide to opt into the program that would relieve the university of mandates concerning Board of Trustee term limits, enrollment caps and attorney general approval on small claims.

The plan still keeps some mandates; universities would still be held to a maximum tuition increase of 3.5 percent per year.

Although all this relief from pricey regulation sounds attractive to universities, freeing themselves from the state mandates also comes at a price.

The plan calls for universities to put in 10 to 20 percent of state funds to a scholarship fund for high performing in-state students or as the Ohio Board of Regents calls it, “The Pre-Eminent Scholar’s Award Foundation.”

“It’s an option for the university to provide an incentive to attract and retain the best and brightest students,” Ohio Board of Regents spokeswoman Kim Norris said.

But Creamer—and officials at other universities— are unsure if they’ll be able to the costs of the Pre-Eminent Scholar’s Award Foundation.

If Miami wanted to be an “International Enterprise University” which would relieve the school of several other additional mandates, they would need to put 20 percent or $11 million into the scholarship fund.

The Ohio Board of Regents believes universities can make up for the cost of the scholarship funds with the cost-savings measures listed in the Enterprise University plan.

“It would be redirecting funds,” Norris said. “As we’ve talked about universities saving money, they would be able to redirect some funds into a merit based scholarship. There’s a bonus in that (universities) are raising their ability to attract.”

Bowling Green State University doesn’t qualify for the International Enterprise University level but is interested in other phases of the Enterprise University program, according to BGSU President Mary Ellen Mazey.

She is concerned about the money universities wouldn’t be able to touch, because it would be redirected to the scholarship fund, but is excited for the plan, especially since BGSU follows subject to restrictive enrollment caps that would be lifted should it opt in.

“I certainly endorse the mentioned scholar funds,” Mazey said. “I think we could benefit there, eliminating the caps would be beneficial.”

Ohio State University spokesperson Jim Lynch said the university “looks forward to working with the Chancellor.”

Before universities begin implementation such a plan, the proposal needs to be sent to the Ohio legislature for review.

“The next step is that this all has to go to the legislature,” Norris said. “At that point we’ll have a better idea of what types of restrictions we can free universities from.”

Amanda Seitz is the special reports editor for the Miami Student. She is a contributor to the College Fix.

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