Higher ed under the gun with warning from Taft



At first glance, Gov. Bob Taft's contention that tuition to attend Ohio's public colleges and universities must be kept affordable in order to increase enrollment makes perfect sense. But as in all things government, first glances don't tell the whole story.
In this case, the whole story has to do with the state of Ohio's financial commitment to higher education. In a word, abysmal. For the past several years, the Ohio Board of Regents, which governs public universities and colleges, has had its budget requests slashed by the General Assembly. That, in turn, has necessitated reductions in state funding for each of the 13 institutions.
Thus, in the case of Youngstown State University, a loss of $5.4 million in the current biennium caused the board of trustees, on the recommendation of President David Sweet, to increase tuition 8 percent effective this semester. And the administration is bracing for a further reduction in state funding starting next year. Should that occur, YSU would have only two options: make deep cuts in spending, or boost revenue through a tuition increase.
Enrollment growth
While we have consistently called on Dr. Sweet and the trustees to reduce operational costs, seeing as how the General Assembly is not inclined to increase state subsidies, we also recognize that with the recent growth in enrollment, the cost of providing a quality education will increase.
In September, the university released its official count that showed 13,101 full-time and part-time students. The number represents a 1.9 percent increase over last fall's enrollment of 12,858.
It is true that more students mean more revenue, but it also means more spending.
That's why an adequate level of state funding is important.
But the news out of Columbus is not good, and that's something the governor must recognize.
If the 1 penny state sales tax is not renewed after its June expiration date and other temporary taxes are allowed to expire, the biennium general fund budget will have a shortfall of at least $4 billion.
Such a deficit will necessitate deep cuts in an already bare-bones budget, which means that higher education will again take a major hit.
Board of regents officials are making it known that Ohio's universities and colleges could suffer a 20 percent loss in state support.
Even Taft is aware of the harm that could befall Ohio with the loss of the sales tax.
"I do not want to raise any false expectations about the next budget," he said in a letter Tuesday to all higher education institutions receiving state money. "However, I believe you and your board should be aware of the potential impact that tuition decisions may have on policy-makers in Columbus."
GOP control
By policy-makers we presume the Republican governor is talking about the Republican controlled House and Senate, which raises these questions: Why doesn't Taft use the power of his office to persuade the leaders of his party in the General Assembly to renew the penny sales tax? Why doesn't he dissuade Republican Secretary of State J. Kenneth Blackwell from proceeding with a statewide petition drive to have a referendum on the sales tax?
Blackwell, who is running for governor in 2006, contends that at least $800 million can be trimmed from the general fund budget, but he has yet to provide any details.
Meanwhile, the governor's Commission on Higher Education and the Economy says its goal of increasing enrollment in the two- and four-year colleges and universities by 30 percent over the next decade will not be met if tuition is increased.
The commission has thus proposed a "compact" which would result in the Legislature's increasing state funding for higher education if institutions cut their per-student costs for instruction, technology and campuses.
While that looks good on paper, the prospects of all 13 institutions agreeing to the kind of cost reductions envisioned by the commission are slim at best.
Thus we believe the governor must actively lobby the General Assembly to renew the sales tax and persuade Blackwell to back off.
A $4 billion hole in the general fund budget will not be filled easily.