LSC and LBO brief House Workforce and Higher Education Committee on enrollment trends, funding formula and OCOG

Rachel Larson of the Legislative Service Commission and Ed Millane of the Legislative Budget Office briefed the House Workforce and Higher Education Committee on the structure of Ohio’s higher education system, funding formulas and student aid during a committee meeting.

Larson opened the presentation by outlining the types of institutions in Ohio — 14 state universities and 24 regional branch campuses, state and technical community colleges, private nonprofit colleges and private for‑profit career schools — and the statutory chapters that create or authorize them. "Thank you. Chair Young, vice chair Ritter, ranking member Piccolo Antonio, and members of the committee. Thank you for inviting us to present to the committee today on higher education," Larson said as she began the overview.

The briefing emphasized the State Share of Instruction, or SSI, as the main operating subsidy for Ohio’s roughly 60 public universities and community colleges. Millane said, "SSI had expenditures of $2,090,000,000 in fiscal year 2024," and that SSI represented more than 74% of the Department of Higher Education’s GRF budget that year. Millane also said SSI per student reached $7,184 in fiscal year 2024 and that the FY2024 SSI distribution totaled about $2.1 billion, with roughly 77% ($1.61 billion) going to universities and regional campuses and about 23% ($485 million) to community and technical colleges.

Millane described how SSI is allocated differently across sectors: for universities the formula weights degree attainment (about 50%), course completions (about 30%) and medical/doctoral set‑asides; community colleges receive funding from course completions (50%), success points (25%) and degree/certificate completions (25%). He summarized the community college success‑point metrics (for example, completing 12, 24 or 36 credit hours or completing gateway math/English within the first 30 hours).

Presenters also reviewed the Ohio College Opportunity Grant (OCOG), the state’s principal need‑based financial aid program. Millane said House Bill 33 included what he described as "probably the largest appropriation for OCOG" in two decades, with $200 million in each fiscal year. He explained basic eligibility: Ohio residency, enrollment at an Ohio public or private institution and an expected family contribution threshold; OCOG awards are limited to 10 semesters or 15 quarters. Millane noted the interaction with Pell Grants and the effect of the Pell‑first policy that often leaves community college attendees with no OCOG award unless they meet certain exceptions (foster youth, federal veterans benefits, or third‑term awards).

Committee members asked about enrollment trends and the drivers behind a decade‑long decline followed by a small recent uptick. Representative Marilyn John asked whether the decline was uniform across sectors; Millane said the downturn spanned sectors but that a slight increase was visible beginning last year and that some institutions are gaining while others continue to lose students. Representative Munira Abdullahi and Representative Desiree Tims asked whether staff could provide data on potential causes (cost of living, access, out‑of‑state migration and changing student demographics). Millane and Larson said they would look into those questions and the chair said she would forward lawmakers’ requests to the Ohio Department of Higher Education for more detailed figures when ODHE testifies.

Larson and Millane pointed committee members to forthcoming LSC resources, including a more detailed red book on SSI, members’ briefs on SSI and other topics, an SSI infographic and the Catalog of Budget Line Items. Millane also provided an overview of other programs funded in the budget (for example, Choose Ohio First, the Governor’s Merit Scholarship Program, the Ohio WorkReady Grant, and several new teacher pipeline grants) and listed LBO/LSC staff contacts for follow‑up.

The committee did not take votes or issue directives during the presentation; the session concluded after questions and follow‑up commitments to supply additional data. The presenters said they would respond to outstanding questions from committee members by returning to staff offices or coordinating with ODHE and other agencies.