The Enterprise University Plan

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An Enterprise University Plan for Ohio defines how the state's public colleges and universities can gain increased freedom from state regulation. 

 

News about the Enterprise University Plan

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Friday, August 26, 2011

Editorial: Enterprise U. plan frees power of education

Ohio higher education Chancellor Jim Petro has unveiled a plan that attempts to free state universities from red tape in return for meeting financial and academic goals.

Since the arrival of the Kasich administration, Ohioans have come to clearly understand the state leadership’s agenda for change. From reining in collective bargaining with government workers to leasing state assets to taking public initiatives private, the status quo is being vigorously shaken. In that environment, would it be any surprise that a similar drive should also surface in Ohio’s educational sector?

Regents Chancellor Jim Petro got into the act last week when he unveiled his Enterprise University plan, an effort with noble intentions that would be deployed with a carrot and a stick. The program would, in essence, attempt to free state universities from red tape, give them freedom from some burdensome state oversight and allow them greater independence. In return, the schools would need to meet operational, financial and academic goals. It is all in the name of getting more Ohioans educated at more affordable cost, arming them with degrees and skills that are in work-place demand, keeping them in the state after they graduate and, in a sop to fiscal conservatives, reducing costs.

The proposal has merit. In a state with a rich history of innovation, returning Ohio to its entrepreneurial roots comes with rewards, among them the promise of a stronger, more vibrant business community.

By making universities more accountable, productive and accessible, more degree-holders are certain to pursue personal economic dreams that can only be achieved by securing a degree. Tie that with administration efforts to improve the attractiveness of Ohio as a business destination, and the expectation is that more of those grads will remain in the state to start businesses, adding to payrolls, putting their money to work in Ohio’s economy.

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Frequently Asked Questions

Q. Will this plan privatize Ohio’s schools?

A. No.  The Enterprise Plan will not privatize or even semi-privatize Ohio’s public colleges and universities.  These institutions will maintain their standing as public schools subject to the direction and authority of the Ohio legislature and the Ohio Board of Regents.

Q. Will the plan lower the quality of programs and won’t students lose their well-rounded education?

A. No. There is no language in the plan that would alter programming or course offerings.  Elective majors and curriculum would still be subject to the current approval process which ensures a quality education at Ohio’s public institutions.

Q. What happens to OSU’s land grant status?

A. The Morrill Act of 1862 gave states a grant of federal land within its borders for the establishment of a public institution with the mission to provide members of the state’s working classes a liberal, practical education. Because The Ohio State University continues to be a state funded public university, it will maintain its land grant status.

Q. Will this have an effect on STRS or PERS?

A. No. Employees within the University System of Ohio would continue to be public employees. The Enterprise Plan would not take away eligibility to participate in these retirement plans.

Q. What will happen to such things as minority business practicesin public university purchasing and hiring and “Buy Ohio” preference in university purchasing?

A.  There would be no changes as universities will still be required to sponsor and maintain programs that meet certain benchmarks, which would include things such as minority practices and “Buy Ohio” preference – but they would not have to meets these requirements by following the rules and programs prescribed by State of Ohio policy.

Q. Would the plan allow universities to raise tuition?

A. No. The Enterprise Plan would not allow institutions to raise their tuition above the limits approved by the Ohio legislature. The current cap on tuition increases is 3.5% per year.   

Q. Would universities be able to set whatever rates they choose for different degree programs, or could the plan mean that price would be determined by demand?

A. The Enterprise Plan would allow all 4 year public institutions to set different rates for space and facility reasons. This means that an institution could offer different rates for classes at non-peak hours (after 4:00pm or on Fridays and Saturdays).  Because the current state mandated 3.5% tuition cap remains in effect, institutions that have chosen to raise their tuition to the 3.5% limit would only be able to lower tuition for space and facility reasons. Universities that choose to become Enterprise Universities would be allowed to differentiate the cost of tuition based on the cost of the academic program to attract more students.  Another example might be where the institutional cost of providing faculty, facilities and supplies for a chemistry degree is more than those costs to the a school to provide an English degree. The cost of lab upkeep, chemicals, and other supplies for a chemistry degree is more than the books and other media needed for an English degree.  Still, differentiating the cost of tuition based on these degree programs would still be subject to the state mandated tuition caps.

Q. Does the plan outlaw unions at universities?

A. No. The plan has nothing to do with collective bargaining. 

Q. Are there changes to civil service laws?

A.  No. The Enterprise Plan does not attempt to expand upon those existing rights of the universities related to civil service laws.  Ohio’s four-year public universities already have the legal authority to amend certain aspects of Ohio’s laws impacting civil service. 

Q. Isn’t this plan only going to benefit the biggest universities, like Ohio State?

A. No.  All universities will benefit from the relief of many burdensome, outdated mandates in Phase I of the plan.  Any university that then choses to do so can enter into an Enterprise or international Enterprise agreement with the Ohio Board of Regents to receive additional mandate relief.

Q. What evidence is there that Enterprise universities work or that they have been successful elsewhere?

Enterprise reforms in other states have had successes.  An effort was made by the Board of Regents to study those other states’ reform efforts to take those best practices and incorporate them into Ohio’s plan.  Our Enterprise Plan is unlike any current university plan throughout the country. One of the criticisms of entrepreneurial universities in other states is that tuition rapidly increased when unchecked by the legislature.  Ohio’s Enterprise Plan not only maintains legislative control over tuition, but provides the ability for colleges to lower tuition for certain degree programs, and provides an incentive for International Enterprise Universities to lower tuition even more. 

Q. If Enterprise Universities are required to give up a portion of their state funding to qualify, where will the money go?

A. The Enterprise Plan calls for a portion of the state funding that colleges and universities receive to be reinvested by each participating institution into an Ohio Scholars Fund, which will be marked for use by that school for its students. Because it creates a new foundation, The Enterprise Plan by design will not diminish Ohio’s current commitment to need based assistance.  In fact, by creating a foundation, Ohio will be better positioned to seek private funds for a variety of scholarship opportunities that will benefit all Ohio students.  

Q. What would taxpayers lose in transparency and accountability among the schools?

A. The Enterprise Plan leaves in place three bed rock principals that ensure continued transparency: 1) Ohio’s public records act and open meetings laws, 2) authority of the Auditor of State to review and audit public university financial records; and 3) the requirement that the universities utilize the Office of The Ohio Attorney General as counsel in important legal matters.

Q. Are executive sessions just a way to shield what they’re doing from scrutiny by the media?

A. No.  Ohio law already recognizes several well-articulated instances where a public body is permitted to enter into executive session for the purpose of discussing certain topics.  During executive session, these public bodies may not deliberate or vote on issues.  All of those decisions must be made in an open and public meeting.