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Ohio plans to create charter universities that would take less state money

Colleges would gain more autonomy for taking less state money.

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By Laura A. Bischoff, Columbus Bureau Updated 10:29 PM Wednesday, August 10, 2011

COLUMBUS — Ohio’s 14 universities, including Wright State, would be automatically relieved of some state regulations and they could qualify for even more autonomy if they take less state money, according to an executive summary of a plan to be released today.

Ohio Board of Regents Chancellor Jim Petro today will walk university officials through his plan to create charter or enterprise universities and change the way the state oversees higher education.

“By allowing our universities to operate as an enterprise of the state instead of a bureaucratic behemoth, the state stands to gain from the increased efficiency, effectiveness and competitiveness that will help drive a 21st century economy,” the summary said.

Phase one of the plan calls for changes for all 14 universities, including allowing boards of trustees to meet with internal auditors behind closed doors and to discuss proprietary information in secret. It also calls for increasing the bidding threshold to $250,000, up from $49,000, and allowing universities to mandate that employees be paid by electronic deposit.

Ohio State, Kent State, Ohio, Miami and Bowling Green State universities would no longer be subject to the enrollment caps set in 1969.

Universities can opt to go to phase two by agreeing to invest a portion of their state aid into scholarships or other initiatives and to accept less in state funding. In exchange, they would be allowed to self-insure for workers’ compensation coverage, buy and sell property with less state oversight, set tuition based on the cost of an academic program, and settle claims of up to $200,000 without approval from the attorney general. Their bidding thresholds would be bumped up to $500,000.

Universities may also qualify for international enterprise status that earn them another level of freedom, such as settling claims of up to $300,000 without attorney general approval and seeing a bid threshold of $1 million. These universities would no longer be subject to oversight by the Controlling Board, a bipartisan legislative body that approves spending.

Bruce Johnson of the Inter University Council of Ohio, which represents 13 public colleges and two free standing medical schools, said the universities favor relief from bureaucratic government mandates “but we think the state needs to invest more, not less, in higher education.”

An easing of mandates could save universities money, which should in turn be plowed back into higher education — not siphoned off for other state needs, he said. At this point, details are sketchy about how the math might work out, Johnson said.

“We will continue to work with the governor and chancellor to fill in the details,” said Johnson, who served as lieutenant governor under Republican Bob Taft.

Johnson said he doesn’t think the plan itself will lead to tuition increases. “Declining state support is what leads to tuition increases,” Johnson said.

Wright State, Central State and Miami University officials declined immediate comment. Officials said they would review the plan and respond after Petro’s formal announcement.

The Ohio Conference of the American Association of University Professors warns against charter or enterprise universities.

“Don’t let the names fool you. Regardless of what they are called, charter universities undermine the whole concept of public universities and instead make them semi-private institutions that still take taxpayer monies but have little or no accountability to the public,” the association said on its website. “This is an approach that will ultimately hurt Ohio’s students and future economic growth.”

Petro’s ideas would still need legislative approval. His plan will need to be introduced as a bill in the Republican-led Legislature and go through hearings. The budget says it’s the intention of Gov. John Kasich and Petro to implement the plan by July 1, 2012.

The Associated Press contributed to this report.

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