By JAN McLAUGHLIN
BG Independent News
Ohio’s new formula for determining the state’s share of funding for higher education was too late and too little this year for Bowling Green State University.
The formula, which takes $100 million off the top of state funding, awards colleges based on the incomes of their graduates. That puts BGSU at a disadvantage, since many of its graduates are trained for careers in education, nursing, social work and mental health – “caring” professions that reward alumni in ways other than huge paychecks.
The BGSU Board of Trustees met Thursday afternoon to approve the 2026 budget that was late due to delays at the state level. With the new formula in mind, the total revenue is expected to be $501.5 million, with expenses expected to hit $500.9 million.
“This has been one of the most challenging years for the state budget,” Sheri Stoll, BGSU CFO and vice president for finance and administration, said to the trustees.
The last time the “State Share of Instruction” formula was drastically changed was in 2016, when Gov. John Kasich’s administration decided to measure the success of universities by the number of students who completed their degrees.
That shift was good policy, according to Stoll.
“You’re asking these universities to be good stewards of this funding,” she said on Friday.
But the change made by the state at the last minute this summer is being questioned by some as a fair way to determine the share of state funding for higher education institutions.
“Meaningful careers” are not always those with big salaries. And BGSU officials are working to convince state officials of that.
“We want the state to acknowledge there is value across careers and degrees,” Stoll said. “Especially for ‘helping professions’ that are necessary. We want to make sure our graduates can pursue their dreams.”
BGSU President Rodney Rogers and other BGSU officials have met with the state’s chancellor of higher education, and have plans to meet with him again on the matter.
“He was very open to hear what we had to say,” Stoll said.
“I think we can make some meaningful progress,” she said.
The data being used to determine post graduate employment salaries is also somewhat suspect. The Department of Labor’s statistics on post secondary employment outcomes is referred to as “an experimental database.”
Stoll noted that BGSU’s success at attracting record high enrollment numbers in consecutive years appears to not be taken into consideration in the state funding portions. Several universities that have experienced continued enrollment declines over the past five to 10 years should have expected a declining share of state funding, according to material presented by BGSU.
However, those institutions actually realized a disproportionate increase in their piece of the $100 million pie from the state.
“The new formula doesn’t help us,” BGSU Trustee Drew Forhan said during Thursday’s meeting. “It’s really disappointing what the state has done.”
The state’s higher education budget also dings BGSU’s plans to raise tuition for the next incoming freshman class by 5%. BGSU will be limited to raising tuition by 3%, even though state economic indicators pointed to a 5% tuition increase, Stoll said.
“These data points suggest a positive picture for Ohio’s economy for the next 12-24 months, but a less positive funding picture for BGSU even though our enrollment, retention and graduation rates are doing exceptionally well,” the BGSU budget report stated.
Universities are not permitted to increase tuition for continuing students beyond the rate when they entered as freshmen. So this will have a four-year impact on revenue.
The lower revenue numbers will affect the amount BGSU has for salaries, wages and benefits, plus for supplies, travel and professional development, maintenance and repairs, undergraduate financial aid, and equipment, according to the report.
Despite the disappointing state funding news, Stoll asked the trustees to not lose sight of BGSU’s success attracting and retaining students. The incoming freshman class grew 4% over last year’s, which was 14% over the previous year, and 36% higher than in 2021.
“That’s nothing short of remarkable,” she said.
