State board seeks modest operating increase, outlines student-recovery fund and records digitization

John Ware, executive director of the Ohio State Board of Career Colleges and Schools, told the House Workforce and Higher Education Committee that the board is requesting a modest increase to its operating budget for the 2026–27 biennium and described the board’s oversight workload and student protections.

Ware said the board regulates 243 private career schools that enroll more than 55,000 Ohio students across about 900 approved programs, ranging from short certificates to four‑year degrees. He said the board employs staff to conduct in‑person site visits (about 175 in fiscal year 2024) and to approve and reauthorize programs and schools; fiscal year 2024 activity included 124 new program or degree approvals, 31 new school certificates of registration, 34 renewals and more than 580 program and degree reauthorizations.

The requested budget changes in the governor’s proposal increase the board’s 500 line item to cover higher personnel costs (from $567,000 to $581,000 in the first year, then to $593,000 in fiscal year 2027), Ware said, and add a small operational increase to the 520 line item while reducing the 510 line item that supports personal‑service contractors who perform evaluations.

Why it matters: the board oversees schools that train workers in health, trades and information technology — programs Ware said place many students in jobs quickly — and the agency also administers a Student Tuition Recovery Fund intended to protect students when a school closes.

On the Student Tuition Recovery Fund, Ware said schools pay an assessment required by statute — $500 per year for their first five years of operation — and the fund can be used to arrange a teach‑out at a similar program or, when that is not available, to refund prepaid tuition. Ware said the board keeps school records for 50 years and has undertaken a multiyear digitization project to make those records accessible to students and employers; he said the effort has resulted in roughly half a million records digitized and the board now can serve students and employers seeking verifications.

Committee members asked for clarification on metrics and costs. Representative Joe Miller asked whether student tuition at regulated schools has increased; Ware said the board does not set tuition and that "we haven't seen any significant fee increases" at the school level in recent years, noting about 25% of regulated schools participate in federal financial aid programs tied to federal funding levels. Vice Chair Ritter raised the board’s cited 50% graduation rate for longer programs and asked how that should be interpreted. Ware said shorter certificate programs typically show much higher completion rates and that life events (childcare, family issues) often cause students to leave longer programs; he noted the board tracks graduation, retention and placement rates and intervenes when rates are well outside comparative norms.

Ware also described complaint and enforcement activity: the board initiated 44 preliminary investigations in fiscal year 2024, including 35 student complaints, and most complaints were resolved by obtaining voluntary compliance from schools. He listed partnerships and training pathways with the Department of Veterans Affairs, the governor’s Office of Workforce Transformation (including TechCred and IMAP), the Bureau of Vocational Rehabilitation and some Department of Corrections programs that provide reentry training.

No committee action was taken during the hearing; Ware's presentation and the lawmakers' questions were part of the committee's review of agency budget requests.

The committee heard the testimony and then moved on to the next agency presentation.