The Kasich Budget, FY 2016-17

Earlier today, Gov. Kasich unveiled his $72.3 billion biennial budget for Fiscal Years 2016-17. Below are the highlights.

More Income Tax Cuts  As expected, the major focus of the governor’s budget is further erosion of the state income tax. The proposal asks for a 23% across-the-board personal income tax (PIT) reduction over the biennium, and elimination of the PIT for small businesses who have less than $2 million in annual gross receipts.  

The governor proposes to make up much of the lost income tax revenue by increasing sales and use taxes 22.8% and increasing the commercial activity tax (CAT tax) by 88% over the biennium.

Generally speaking, the Ohio Conference AAUP has been leery of income tax cuts because they have done little to help the average Ohioan, and they eliminate revenue that could be invested in things like public higher education.

Additionally, increasing the sales tax tends to put a greater burden on lower income earners. 

Higher Education Appropriations  Higher education funding under Kasich’s proposed budget accounts for 6.8% of total general revenue spending.

Kasich’s plan would appropriate a total of about $2.4 billion to higher education in FY 2016, representing a 2% increase over appropriations during FY 2015.

For FY 2017, the governor would appropriate about $2.5 billion, which would be a 2.5% increase from the previous year.

While we applaud the funding increases, it must be noted that these allocations don’t restore higher education funding to where it was before Kasich took office. In FY 2011, under Gov. Strickland’s last budget, higher ed spending was $20.5 million higher than it will be in FY 2017. 

Addressing Costs & Student Debt
As far as tuition caps, Kasich would allow a 2% tuition increase at public colleges and universities in FY 2016 but no increase in FY 2017.

Additionally, the governor has proposed a $120 million “debt relief fund.” The details of how this money would be awarded are unclear, but the goal is to prioritize low-income, in-demand jobs and those who work in Ohio for five years.

Moreover, Kasich has called for the creation of a nine-member Task Force on Affordability and Efficiency that will be charged with finding efficiencies and ways to reduce costs at colleges and universities.

Community College Bachelor’s Degrees
Outside of the funding pieces, Kasich introduced language that would allow community colleges to offer four-year degrees when local job creators express a need for workers with advanced training and only if there is not a public university or its regional campus within 30 miles that has such a program. Expansion of OCOG Eligibility, College Credit Plus Funding

Additionally, the Kasich administration, as well as leaders of the Ohio Association of Community Colleges and Inter-University Council, are touting that the best way to reduce college costs is to reduce time to degree completion.

In that vein, the governor has proposed offering the need-based Ohio College Opportunity Grant (OCOG) to community college students during the summer.

OCOG has not been available to community college students because of a “Pell first” rule that requires those students to use federal Pell Grant funds before accessing OCOG. The Pell money tends to cover the full educational costs for those students but currently is not available for summer session.

Moreover, the governor is making a push to get more high school students enrolled in College Credit Plus and Advanced Placement courses by asking for $6.5 million in new funding for those programs in FY 2017.

Funds for “College-Level Teachers”

Kasich also wants $18.5 million over the biennium to hire and train more “college-level teachers” to teach in economically-disadvantaged high schools. 

While we appreciate the intent, we have concerns about qualification standards and quality assurances and will need to see more details.
  

Awarding Competency-Based Credit

The governor is asking Ohio’s public colleges and universities to develop a plan to give competency-based credit for certain courses. He also has set aside $500,000 to develop a competency-based training program to train Ohioans in skills for “in-demand jobs.” 

No Workload Edict

Rejoice! This is the first budgetary bill that Gov. Kasich has introduced that does not contain a mandate to arbitrarily increase faculty workload.

Links to Executive Budget Information

Gov. Kasich FY 2016-17 Budget

Higher Education Fact Sheet

Ohio House, Senate Leaders Have Their Own Higher Education Plans

Separate from Gov. Kasich’s executive budget, Ohio House and Senate Republicans have their own plans for public higher education.
House Proposal

House leaders have called for providing $100 million in grants over two years for students who are working to earn degrees in “high-demand” jobs in Ohio. 

Under House Bill 1, introduced by Rep. Kirk Schuring (R-Canton) and Rep. Nathan Manning (R-North Ridgeville), a student could get up to $5,000 a year to pay for higher education as long as they meet certain requirements, such as spending three months in a workplace setting to “get a feel for whether they want to continue along that path.” 

Once a student graduates and gets a job in their field, they could take a 25% tax credit on their student loans.

We plan to reach out to Reps. Schuring and Manning to discuss ways in which we might make college more affordable, and student debt less crippling, for everyone.
Senate Proposal
Senate leaders have their own ideas for tackling higher educations costs.
Sen. President Keith Faber (R-Celina) has introduced Senate Bill 4, which would require each board of trustees at state institutions of higher education to submit to the Chancellor a plan to reduce in-state student cost of attendance by 5% for the 2016-2017 academic year.

While we commend Sen. Faber for his goal of decreasing costs – a goal we share – we believe a better approach would be to ask institutions to form task forces to come up with a plan. The task forces should be representative of the university community, including students and faculty, so that there is a balance of interests.

Candidates Announced for Ohio Conference Board Positions

The Nominating Committee of the Ohio Conference AAUP is pleased to put forth the following candidates for this year’s elections:  

-Vice President: Martin Kich, Wright State University – Lake Campus

-Treasurer: Heather Howley, University of Akron – Wayne College 

-At-Large Member – Public Institution with <100 or Private Institution: Anita Waters, Denison University

This year’s elections again will be conducted electronically. Each current Ohio AAUP member will be e-mailed a ballot no later than March 15 and will have two weeks to vote.

AAUP / AAUP-CBC Announce 2015 Summer Institute Details

The AAUP and AAUP-CBC have announced that this year’s Summer Institute will be held at the University of Denver from July 23 to 26.

The Summer Institute is a four-day series of workshops and seminars designed to train and educate AAUP members on a wide range of topics such as organizing, advocacy, and academic freedom.

More information about this event can be found by clicking here.

Each year the Ohio Conference offers scholarships to Ohio members who want to build a new chapter, strengthen an existing one, or simply learn how to be a more effective advocate of AAUP principles. Be on the lookout for more information about scholarship availability in the coming months.

Save the Date for the 2015 OCAAUP Annual Meeting

The next Ohio Conference AAUP Annual Meeting will be held Friday, November 6 – Saturday, November 7, 2015 at the Renaissance Columbus Downtown. 

We will have a registration form and hotel reservation information available in the coming months.

Spring Semester Speaker Series

Co-Sponsored by AAUP-WSU & The Wright State Administration

To celebrate the centennial of AAUP and the contributions of all those who have served in leadership positions within the Chapter, but especially Rudy Fichtenbaum and Jim Vance, who have served since the founding of the Chapter.

Risa Lieberwitz

“‘Corporatization vs. Academic Freedom: Can Faculty Shared Governance Be Saved?”

Wednesday, January 14, 1:00 p.m.

Discovery A (163A SU)
 

 John McNay

“The Defeat of SB 5: Building for the Future on a Historic Victory”

Monday, January 26, 1:00 p.m.

Discovery A (163A SU)

 Howard Bunsis

“Higher Education and State Legislatures Have All Lost Their Way”

Thursday, February 5, 1:00 p.m.

Rathskeller (008) SU

 

 Joerg Tiede

“University Reform: The Founding of the AAUP”

Thursday, February 26, 1:00 p.m.

Discovery A (163A SU)


 

 Miranda Merklein

“Higher Ed Fail: Combating Contingency and Corporatization with Adjunct Activism”

Monday, March 16, 1:00 p.m.

Discovery A (163A SU)

 Hank Reichman

“Can I Tweet That? Academic Freedom and the New Social Media”

Monday, March 30, 1:00 p.m.Discovery A (163A SU)

 John Wilson

“Forbidden Tweets: Academic Freedom and the Case of Steven Salaita”

Monday, April 13, 1:00 p.m.

Discovery A (163A SU)

Cancellations due to inclement weather or for other reasons will be announced on the chapter website at http://www.wright.edu/administration/aaup/aaup.html. Inquiries about the series should be directed to Marty Kich at martinkich@gmail.com.

End-of-the-Year Statehouse Updates

“Right-to-Work”

Earlier this year, the Ohio House of Representatives’  Manufacturing and Workforce Development Committee held hearings on House Bill 151 and House Joint Resolution 5.
HB 151 would enact a “right-to-work” law for the private sector, while HJR 5 would place the issue on the statewide ballot for voters to decide.  HJR 5 would impact the private and public sectors. There was a third “right-to-work” bill introduced during this General Assembly, HB 152, that had not received a hearing; however, the bill’s sponsor, Rep. Ron Maag, waived his right to give sponsor testimony. As a result, there was no movement on Rep. Maag’s bill or the other “right-to-work” legislation during the “lame duck” session. Nevertheless, we expect that similar legislation will be introduced next year in the new, 131st Ohio General Assembly.  Election Results
All incumbent Republican statewide officeholders (Governor, Auditor, Attorney General, and Secretary of State) were re-elected to their positions. In the Ohio Senate, there was no shift in the balance of power – Republicans will maintain their 23 seats while Democrats retain their 10 seats. Sen. Keith Faber (R-Celina) will remain President of the Ohio Senate. However, in the Ohio House, Republicans gained five additional seats. Next year, Republicans will hold 65 seats, while Democrats drop to 34. Rep. Cliff Rosenberger (R-Clarksville) will be the new House Speaker, succeeding long-time Republican legislator Bill Batchelder of Medina.  House Bill 616In September, Rep. Anthony DeVitis (R-Green)  introduced HB 616, legislation that would prohibit a faculty member of a state institution of higher education from requiring a student to purchase a proprietary textbook or a customized textbook for use in that faculty member’s course of instruction unless the course of instruction is exclusively offered by the institution.
It would also would forbid colleges and universities from producing or requiring a student to purchase a custom textbook for any course that can be transferred to another institution. There was no movement on this legislation during the remainder of the legislative session. However, DeVitis has indicated that he will reintroduce the legislation next year.  Redistricting ReformOver the last two weeks, the Ohio Senate and House each approved HJR 12, which would create a new process for drawing Ohio’s state legislative districts. The resolution, which must be approved by voters in November 2015 in order to take effect, had broad bipartisan support in both chambers. HJR 12 is a big step in the right direction with apportionment reform, as it creates a bipartisan commission in which minority members of the commission would have to support the maps in order for them to take effect. If HJR 12 is approved next November, Ohioans should expect to see maps that keep communities together and do not favor one party over the other. As a result, we should see more competitive Statehouse races after the year 2020. This proposal only impacts state legislative maps and not congressional ones.
On the Horizon

Republican leaders already have begun talking about the next state budget and other legislative goals. 

Specifically, Sen. President Keith Faber (R-Celina) has said it is one of his caucus’ priorities to cut the cost of a college education by five percent (5%). He said that he wants colleges and universities to tell the legislature how they will reduce their costs.

Moreover, Gov. Kasich’s team has indicated that additional state income tax cuts likely will be a component of the governor’s proposed budget.

In addition to closely monitoring these developments, OCAAUP will be pursuing its own legislative agenda aimed at addressing issues such as: administrative bloat, working conditions and salary of part-time faculty, and faculty and student representation on Boards of Trustees.

Final Call for Nominations for 2015 OCAAUP Board of Trustees Elections  

To our members in the Ohio Conference AAUP:  We are seeking nominations for the 2015 Ohio Conference elections.  In accordance with our governing documents, you must have been a member for two years and current on your dues to be eligible for a Trustee position.

Nominations should be sent to Executive Director Sara Kilpatrick at sara@ocaaup.org and must be received by January 30, 2015.  Below is the list of positions that will be elected directly through the Conference elections next year. Those who are elected to these positions will serve a two-year term beginning on September 1, 2015.  

–Vice President 

–Treasurer 

–At-Large Member – Public or Private (nominees may be members of chapters at private institutions or of chapters at public institutions with fewer than 100 members)

The Vice President presides in the absence of the President and serves as a delegate to the AAUP Annual Conference and the Assembly of State Conferences Annual Meeting.

The Treasurer serves as a delegate to the Assembly of State Conferences Annual Meeting and is responsible for overseeing the Conference’s budget.

Serving on the OCAAUP Board of Trustees is a rewarding way to engage in statewide AAUP issues and state government advocacy. If you have any questions, contact Sara Kilpatrick at sara@ocaaup.org.

OCAAUP President John T. McNay had an op-ed published on September 29, 2014 by the Cincinnati Enquirer, which encouraged legislators and university administrators to start focusing on the real problems that Ohio’s higher education system faces.

Click here to read his piece: “Opinion: Bloat driving up UC, Miami costs.”

OCAAUP sent questionnaires to candidates of both political parties running for Governor, Secretary of State, and Attorney General. Below are the responses received from State Sen. Nina Turner (D), candidate for Secretary of State, and David Pepper (D), candidate for Attorney General.  Thank you to these candidates for their responses!

State Sen. Nina Turner for Ohio Secretary of State

What is your position on current levels of state funding to higher education?
• I believe that the state of Ohio is currently underfunding our public university and college system. This reality leads to increasing pressure on faculty to expanded course loads, as well as dramatic tuition increases that affect the academic rigor at these institutions and increase student debt loads. It also creates an incentive for administrators to cut full time faculty in favor of adjuncts, many of which are overworked and underpaid.

The state has also decreased support for financial aid programs like the Ohio College Opportunity Grant (OCOG). Funding for this program has never recovered to its peak before the recent recession.

If you believe that state support for public higher education ought to be increased, how, specifically, would you attempt to increase it?
• First, I believe we need to re-examine the state’s recent propensity to pass tax cuts that disproportionately benefit the wealthy few.  Instead of pursuing the failed trickle-down economic policies of the past, we should be using funds to invest in our educational system at all levels. That is the only way to ensure that the next generation is prepared to be successful working adults. 

This year, the state is slated to have a surplus of hundreds of millions of dollars. This should be re-invested in education and financial aid programs to help Ohioans succeed.
 
What specific plans would you propose or support to reduce the current levels of student debt?
• As Secretary of State, I would not be directly involved in this space, but I believe that by investing additional funds into basic support for public colleges and universities, and increasing state support for financial aid programs like OCOG, we can help keep down the cost of higher education and student debt loads.

The state also needs to increase financial literacy outreach to educate parents and students about their financial options and the consequences of the loans they are taking out, regardless of what school that student attends. Steering more students toward community colleges for their first two years of school, or expanding the ability of advanced high school students to earn college credit, would also do a lot to reduce the overall cost of college for Ohio students and their families.

Do you agree that the dramatic increase in administrators and administrative staff and their compensation, at the expense of allocations to instruction, is a major driver of the cost of postsecondary education? If you agree that this is major issue, how would you address it?
• The numbers don’t lie; administrative expenses continue to comprise a larger and larger share of college budgets. If we want to reduce the ballooning administrative costs at colleges and universities, we need to shift focus away from the bells and whistles of campus life and back toward academics and classroom instruction.

Do you agree that for-profit colleges and universities need increased regulation? If you do, what specific proposals would you support at the state level?
• I am not ideologically opposed to for-profit colleges and universities, as I believe students need to be able to find the academic situation that fits their needs. However, I do believe that all institutions should be forthright with their students about their likelihood of success, costs, and career prospects as compared to other educational options and should be held to the same standards as non-profit educational institutions.

Do you support collective bargaining by public employees—by college and university faculty and staff, in particular?
• I do, unequivocally. I travelled the state campaigning against Senate Bill 5 in 2011, and working to educate Ohioans about what was at stake. I also fully support the ability to collectively bargain for adjunct and other part time faculty at public institutions. This is why I introduced Senate Bill 65—every worker deserves a seat at the table.

Do you agree that the increased reliance on adjunct faculty is exploitative of these faculty and undermines the value of the instruction provided by our colleges and universities? If so, how, specifically, would you address this issue?
• I believe that the increasing reliance on adjuncts does undermine instructional value. Although these faculty members are no less committed to their work than their tenured and tenure-track peers, the pressure of having to string together more classes at multiple institutions, oftentimes, to make ends meet, makes it more difficult for adjuncts to dedicate the time they would like to their students.

One of the most effective ways to address this issue would be to enact rules at the state level regulating maximum course load and instituting other protections. In addition, I believe adjuncts should be allowed to collectively bargain on an institution by institution basis.

Do you support a change in state law to allow adjunct faculty at public colleges and universities to engage in collective bargaining?
• Absolutely. This is why I introduced Senate Bill 65 in the Ohio Senate. As a former adjunct and present AAUP member, I know from first-hand experience the value of ensuring these professionals have a seat at the table.

Do you support a change in state law to allow graduate students at public colleges and universities to engage in collective bargaining?
• Yes. Graduate students are also covered in Senate Bill 65. If any of an institution’s instructors are excluded from having input into how their working life is structured, there will be room for them to be taken advantage of.

Do you believe that both employer institutions and individual employees need to make equal contributions to the public employee pension systems, in particular the State Teachers Retirement System?
• Yes. Equal contributions from both employees and employer is the fairest way to go about things. Ohio’s educators are tasked with preparing the next generation of Buckeyes for successful lives—the least we can do is ensure they have a secure retirement.

David Pepper for Ohio Attorney General 

1. What is your position on current funding levels for higher education?

Increased higher education funding should be a priority for the state. Ohio has one of the most comprehensive systems of public higher education in the country, and we need to do everything we can to maintain access to high quality colleges and universities for all Ohioans.

2. How, specifically, would you attempt to increase higher education funding?

So many public dollars are being wasted on bad decisions driven by pay-to-play politics…and the most clear example is how much money is being wasted on charter schools that are completely failing. So my plan is to reduce wasteful spending by cracking down on pay to play, bringing far more accountability and transparency in areas such as charter schools, which would free up million of dollars to be invested in quality public education at all levels.  

I also will end the pay-to-play system the Mike DeWine uses in the area of collections, which led to declining collections revenues in 2012 and 2013. Fixing this corrupted system will bring more revenues back to state coffers.

3. What specific plans would you propose to reduce student debt?

I am hugely concerned that our students are being saddled with debt for decades, holding them back and hurting our economy.

As attorney general, I will do all I can to keep the cost of tuition down, and to crack down on lending practices that harm students.  I will use the office to investigate lenders who exhibit deceptive marketing or other lending practices to ensure that the student loan market operates in the best interest of students, not the best interest of lenders’ profits. 

4. Do you agree that the dramatic increase in administrators and administrative staff and their compensation, at the expense of allocations to instruction, is a major driver of the cost of postsecondary education? If you do agree that this is major, how would you address it?

It’s a major concern. And I will be a voice for administrative efficiency and other steps to maximize focus on and investment in instruction

5. Do you agree that for-profit colleges/universities need regulation? If so, what proposals would you support?

As attorney general, I will focus in particular on cracking down on for profit colleges that engage in deceptive practices to lure students into high-cost, low-reward programs. The AG’s consumer protection section can serve both an enforcement and education function to ensure both that illegal practices are stopped and that potential students are aware of scams and traps that may exist.

6. Do you support collective bargaining by public employees – by college and university staff and faculty in particular?

Yes. I have a long commitment to collective bargaining rights for public employees. During the battle in Ohio over Senate Bill 5, I testified against the bill before the General Assembly and served as a traveling spokesman for the We Are Ohio campaign to repeal it.

7. Do you agree that increase reliance on adjunct faculty is exploitative and undermines the value of instruction provided by universities and colleges? If so, how, specifically, you would address this issue?

I think adjunct faculty can be useful at times, but the practice of using them can be abused in a way that undermines overall instruction.

8. Do you support changing state law to allow adjunct faculty at public universities and colleges to engage in collective bargaining?

Yes.

9. Do you support changing state law to allow graduate students at public universities and colleges to engage in collective bargaining?

Depending on what role those graduate students are playing, yes.

10. Do you believe that both employer institutions and individual employees need to make equal contributions to the public employee pension systems, in particular STRS?

Yes.