Chancellor: Tuition freeze likely to end this fall

By Harold Gwin

The chancellor of higher education called on universities to share more to cut costs.

YOUNGSTOWN — The state bought two years of tuition freezes at Ohio’s public universities by offering increased funding assistance in 2007-08 and 2008-09.

That two-year time period ends this fall, and it doesn’t look like the state will have money to entice those universities to offer those freezes again.

Eric D. Fingerhut, Ohio’s chancellor of higher education, said Tuesday that any discussion about the level of state aid to higher education will be addressed by Gov. Ted Strickland when he delivers his budget message near the end of the month.

Word coming out of Columbus shows a very tight financial picture.

The governor has met with all of the university presidents to outline the budget situation, Fingerhut said, noting that the governor and the Legislature have offered assurances that higher education remains a priority in the state’s efforts to revitalize and expand its economy.

But higher education must still strive to be as efficient as possible to control costs, the chancellor said, suggesting that the best thing the universities can do is to continue to look for new efficiencies.

The state did mandate both 1 percent and 3 percent spending reductions for the public universities, and the 1 percent has been documented, Fingerhut said, adding that his office is now documenting the 3 percent cut, and it appears that target will be reached.

There are still significant efficiencies that can be achieved by institutions’ banding together, and those efforts are being accelerated, he said.

Those who are willing to participate in that process won’t suffer as much during the economic hard times, he said.

Computer network servers, health care and joint purchasing are just some areas where the universities can reduce costs, he said.

For example, the state is looking at a joint network server proposition that could save participating schools $100 million, he said.

Schools with campuses of fewer than 5,000 full-time equivalent students could cut costs more by sharing administrative officers, including presidents, development directors and others, Fingerhut said.

Still, the universities must plan ahead, and Youngstown State University, with annual in-state undergraduate tuition held at $6,720 for the last three years, has been developing some scenarios that could result in a tuition increase this fall.

YSU officials have said that the state has asked schools to come up with tuition estimates as the governor prepares his biennial budget.

YSU is receiving $49.8 million from the state this year (up 10 percent from last year), and its tuition scenarios show it will need a 5.9 percent tuition increase this fall to fund a proposed 3.6 percent growth in its general fund to just over $154 million, if state funding remains flat.

Anything less in terms of state aid would require a 6 percent tuition increase to meet that growth projection.

Concern over finances hasn’t prevented the state from pushing for strategies to end the “brain drain” that is pulling top students out of Ohio, both before and after college graduation, Fingerhut said.

Ohio has launched a new $50 million internship and co-op program designed to link students with private-sector jobs, perhaps the best way to keep them in the state, he said.

Having the public universities develop “Centers of Excellence,” areas in which they can excel in terms of educating students; and a push for affordability through projects such as the proposed community college for this area are other key components of that effort, he said.

gwin@vindy.com