Gov. Kasich Unveils State Budget

On Monday, Gov. John Kasich unveiled his $63.3 billion two-year biennial budget for Ohio.  Below is a preliminary analysis based upon documents released by the Governor’s office. Slashing Revenue, Implementing the Affordable Care Act One of the biggest changes proposed in this budget is reducing the state income tax by $2.1 billion, a reduction that gradually will be phased in over the next three years.  This reduction disproportionately favors wealthier Ohioans and strips the state of much needed revenue. 

Additionally, Kasich’s budget includes a reduction of the state sales tax from 5.5 percent to 5 percent, but extends the tax to cover services and “other economic activity.” These tax cuts continue to be funded on the backs of local communities who saw the state’s Local Government Fund slashed in the last biennial budget.  Because of those cuts, we continue to see localities put levy after levy on their ballots as they struggle to maintain adequate safety forces and education funding. Separately, to the surprise of many, the Governor included Medicaid expansion in his budget.  

Approximately 366,000 Ohioans will now be covered by health insurance under this extension, a component of the Affordable Care Act, also known as “Obamacare.” Higher Education ComponentsIn terms of higher education funding, the proposed budget calls for slight increases each year – about 0.6 percent in Fiscal Year 2014 and about 2.3 percent in Fiscal Year 2015. However, this is less of an increase and more of a restoration of funds.  

In the Governor’s last budget, he cut higher education funding by nearly 11 percent in Fiscal Year2012, and added back in less than four percent in Fiscal Year 2013. The proposed budget also calls for continuing to restrain tuition and general fees for undergraduates to no more than the greater of two percent over what the institution charged in the previous academic year or two percent of the statewide average cost, by sector (which we believe means the four year institutions versus the two-year community colleges).  

As anticipated, the State Share of Instruction (SSI) formula is being changed from one based primarily on enrollment to one based primarily on course and degree completions. The Kasich administration is trying to “incentivize” colleges to improve their outcomes.  OCAAUP has concerns about what unintended consequences might accompany this plan, like pressure being placed on faculty to pass students, or administrators overriding faculty-given grades.  

We must not compromise quality of education and disguise it as student success. Over the last few weeks, rumors had surfaced that the budget might include policy to standardize and increase workload for full-time faculty, as Kasich had included such provisions in his last preliminary budget; however, there was no mention of faculty workload in what has been released so far. Again, this is a preliminary analysis based upon the material released by the Governor’s office yesterday.  

The state budget process lasts nearly five months, so there are pieces bound to shift as it undergoes the legislative process.  We will keep you updated throughout the process.

Ginsberg to Give Keynote Speech 
at OCAAUP Annual Meeting;

OCAAUP Will Host CFHE Meeting
Happy New Year!  Please mark your calendars for two important events taking place in Columbus this year. The OCAAUP Annual Meeting will take place April 12-13 at the Columbus Renaissance Downtown.  Benjamin Ginsberg, professor of political science at Johns Hopkins University and author of The Fall of the Faculty: The Rise of the All-Administrative University and Why It Matters, is scheduled to deliver the keynote speech. Ginsberg will address the issue of administrative bloat and topics in American politics.
Additionally, OCAAP is serving as the host for the Campaign for the Future of Higher Education’s Midwest meeting. This meeting will be held at the Columbus Airport Marriott May 17-19.The Campaign for the Future of Higher Education – CFHE for short – is a new grassroots national campaign to support quality higher education.  It was initiated in Los Angeles, California on January 21, 2011 by leaders of faculty organizations from 21 states.  More information on the organization can be found here: http://futureofhighered.org/.   Because the hotels we are utilizing for these events will be very busy during these times, we highly encourage our members to make reservations as soon as possible, certainly by the block rate deadlines.  More information about both events can be found here: https://ocaaup.org/events.aspx.

Reminder: January 20 is the Deadline  for OCAAUP Election Nominations                     To Our AAUP Colleagues in the Ohio Conference: With this notice to members and chapter officers, the OCAAUP Nominations Committee is calling for nominations for five (5) Ohio Conference Board positions. Nominations should be e-mailed to sara@ocaaup.org.  Please be advised that you may receive an additional notice from National AAUP.  To help ensure we have a robust slate of candidates, please circulate this notice to your best and brightest who might be looking for an opportunity to serve the state conference. The Executive Board positions to be elected in 2013 are: Vice PresidentTreasurerAt-Large Member – Public InstitutionsAt-Large Member – Public or Private Chair of Committee on Private InstitutionsThe terms of office for each position are noted in the footnote section of this e-mail.  The expectations of the Board Member elected as Vice President include serving as a delegate to the National AAUP Annual Meeting and the Assembly of State Conferences (ASC) Annual Meeting. The Board member elected as Treasurer also serves as a delegate to the ASC Meeting. Nominations must be received by Sara Kilpatrick, Executive Director of the Ohio Conference AAUP, via email at sara@ocaaup.org no later than January 20, 2013.   Additionally, candidates must accept nomination by submitting a written acceptance, which is due at the same time as the nomination (see the form at the very bottom of this message).  Any AAUP member from Ohio who is in good standing is eligible to nominate candidates and/or run for office. After the close of nominations, ballots shall be sent via mail or e-mail to Conference members in good standing by March 15. Completed ballots must be returned by mail or electronically no later than April 15.  Write-in votes shall not be permitted. Results shall be announced no later than May 15.    Footnotes: Per the Ohio Conference Code of Regulations: “The voting members of the Board of Trustees of the Ohio Conference shall be the President, the Vice-President, the Secretary, the Treasurer, the immediate past President, any member from the State of Ohio then serving on the AAUP National Council or Executive Committee, an At-Large Member from a Private Institution, an At-Large Member from a Public Institution, an At-Large Member from either Private or Public Institution, and the Chairs of the Committees on Organizing, Private Institutions, and Two Year Institutions.   All voting positions on the Board of Trustees shall be elected.   The Chairs of the Committees on Academic Freedom and Tenure and Government Relations shall be non-voting, ex-officio members of the Board of Trustees.  They shall be appointed by the President with the approval of the Trustees. All voting Board of Trustees positions, except for National Council or National Executive Committee members and immediate past President, shall be elected for two-year terms.   For purposes of serving terms of office on the Board of Trustees, the year shall run from September 1 through August 31. Trustees who are National Council members or members of the National Executive Committee shall serve on the Board of Trustees as long as they hold their National positions. The immediate past President shall continue to serve on the Board for one year past the end of his/her term as President.  The Chairs of the Committees on Academic Freedom and Tenure and Government Relations shall serve at the will of the President and the Trustees.”  __________________________________________ Consent Form CONSENT TO STAND FOR OCAAUP EXECUTIVE BOARD ELECTIONS  I, ___(your name)___, from __(your institution)___, confirm that I am a member of the AAUP in good standing, and I am willing to stand for election to the office of __(the office you are seeking)__ of the Ohio State Conference AAUP. ____________           ___________         ___________  Printed Name              Signature                     Date

“Right-to-Work” Bills Passed by Michigan Legislature, Signed by Gov. Snyder

Gov. Rick Snyder of Michigan signed so-called “right-to-work” bills into law yesterday, Tuesday, December 11.  The bills will impact both public and private sector unions.

The crux of these bills, and any other right-to-work law, is the prohibition of “fair share fees,” also known as “agency fees,” which unions collect from non-members for services.  Despite not being able to collect fair share fees, unions that operate in right-to-work states still have to represent and provide services to non-members, and even can be sued by non-members if they believe they are not adequately being represented.

While proponents of right-to-work tout ideological principles such as “freedom in the workplace,” right-to-work is a thinly-veiled union-busting tool.  Without fair share, it is extremely difficult for unions to represent their members and participate in the political process.

More information about right-to-work can be found on our website: Right-to-Work is Wrong. 

Organized labor in Michigan already has begun to explore the option of spearheading a citizens’ initiative to bring this issue to a statewide vote in 2014.  In the meantime, though, the right-to-work law would take effect.  

“Right-to-Work” Bills Fast-Tracked 
in Michigan Legislature 

Gov. Rick Snyder of Michigan is expected to sign so-called “right-to-work” bills into law this coming Tuesday, December 11.  The bills will impact both public and private sector unions.

This attack on workers comes a month after the November elections, in which Michigan voters turned down a proposal to place collective bargaining rights in their state constitution.  A coalition called Protect Working Families, mainly spearheaded by labor organizations, including the Michigan Conference AAUP, had tried to preempt right-to-work with this ballot proposal.  However, Protect Working Families was vastly outspent by opposition that successfully campaigned on outrageous lies and scare tactics.

The crux of any right-to-work law is the prohibition of “fair share fees,” also known as “agency fees,” which unions collect from non-members for services.  Despite not being able to collect fair share fees, unions that operate in right-to-work states still have to represent and provide services to non-members, and even can be sued by non-members if they believe they are not adequately being represented.

While proponents of right-to-work tout ideological principles such as “freedom in the workplace,” right-to-work is a thinly-veiled union-busting tool.  Without fair share, it is extremely difficult for unions to represent their members and participate in the political process.

Right-to-work also has far-reaching implications beyond union members.  All workers in right-to-work states make, on average, $5,333 less than workers in free bargaining states.  In addition, right-to-work states have higher poverty rates, more workplace fatalities, and have fewer people with health benefits.  

When the unions that helped build worker protections and the middle class disappear, those protections and the middle class start to disappear with them. 

In Ohio, a Tea Party coalition has been collecting signatures to put a right-to-work issue on the state ballot.  At this time, it is unknown whether they will follow through with the proposal, and if they do, when it will be on the ballot.  Nevertheless, the We Are Ohio coalition that repealed SB 5 has remained together to monitor and fight against a right-to-work attack.  We will continue to keep our members updated as we hear more about right-to-work in Ohio.

We stand with our colleagues in Michigan as they protest these bills. Thousands are expected to rally in Lansing on Tuesday.

Gov. Kasich and University Presidents
Unveil New Funding Formula 

At a press event on November 30, Gov. John Kasich and the presidents of the four-year public colleges proposed a new formula to fund higher education in Ohio, which will be part of next year’s biennial budget.

The current State Share of Instruction (SSI) formula is primarily based on enrollment numbers. Under the new plan, which was devised by the university presidents at the behest of the Governor, SSI will be based primarily on graduation numbers and course-completion rates. The idea is to provide a financial incentive to universities to achieve desirable outcomes, rather than reward enrollment.

Specifically, 50 percent of the SSI formula will be based on graduation numbers; 30 percent based upon course completion; with the remaining 20 percent dedicated to factors like college readiness and demographics. 

*Other pieces of this proposal include:

• Eliminating the separate funding formula for regional campuses in the second year of the two-year budget, which will be rolled out in early February and will take effect on July 1.
• Rewarding universities that attract the best students into Ohio and keep them in the state for employment or continuing education.
• Repealing laws that place “artificial constraints” on regional campuses, such as separate approval processes for degree offerings.
• Developing a formula in the second year of the budget to reward a student’s successful completion of an associate degree.
• Rewarding schools that successfully train non-traditional and at-risk students. 

*Source: The Columbus Dispatch As with any plan that provides financial incentives for certain outcomes, there are concerns over potential unintended consequences. For example, faculty could be pressured into inflating grades to pass students, or administrators may be tempted to override faculty-given grades.  In general, colleges may unfairly close the door to disadvantaged students who are considered less likely to graduate or successfully train. There are also concerns about how the elimination of separate funding for regional campuses will impact regional campuses and their relationships with main campuses. The Ohio Conference will continue to monitor this proposal and will raise the aforementioned concerns during state budget deliberations, which will begin in February next year. Our goal is to provide constructive criticisms that can aid the success of this new formula.