A Fair Share for Ohio Final Embargoed1.22

Home , College of Wooster, Five Colleges of Ohio, Kenyon College, Oberlin College

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!"#$%&'()*+, EMBARGOED UNTIL 12 NOON, 1/22/20 Table of Contents

Executive Summary ...... 3

Introduction ...... 4

Low Access Ohio Colleges Figure 1: Count of Ohio Schools by Pell Share ...... 5 Figure 2: Pell Rates for Select Ohio Institutions ...... 6 Figure 3: 10 Lowest Pell Shares in the Nation ...... 6 Figure 4: 10 Lowest Pell Share for US Public Universities ...... 7 Figure 5: Great Lakes Pell Shares ...... 7 Figure 6: Case Western Reserve Pell Share ...... 8 Figure 7: Pell Shares at STEM Universities ...... 8 Figure 8: Pell Shares at the Five Colleges of Ohio ...... 9

White and Wealthy Figure 9: Share of Undergraduates who are African-American ...... 10 Figure 10: Share of Students Receiving Grants ...... 10 Figure 11: Share of Students Receiving Financial Aid ...... 11

Improving Ohio Student Financial Aid Figure 12: Distribution of OCOG Funds ...... 12 Figure 13: Students enrolled with OCOG grants ...... 13 Figure 14: Revenue per OCOG Recipient...... 13

Ohio Tax Subsidies for Colleges and Universities Figure 15: Ohio Higher Education Facilities Bonds ...... 14

Failing on Social Mobility Figure 16: Institutions Where Pell Shares Have Significantly Improved ...... 15 Figure 17: Pell vs. Non-Pell Graduation Rates ...... 16 FIgure 18: Liberal Arts Colleges, SAT Scores, and Pell Shares ...... 17 FIgure 19: Public Universities, SAT Scores, and Pell Shares...... 17

Our Recommendation: Higher Ed Accountability Now Figure 20: Percent of Income Needed to Attend College ...... 19 Figure 21: Revenue That Could Be Collected from Fair Share Fee ...... 20 Figure 22: Ohio Institutions’ Endowments...... 20

Conclusion ...... 21

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 2 EMBARGOED UNTIL 12 NOON, 1/22/20 Executive Summary

Ohio colleges perform well overall on access and success for students from working-class and low-income families, but a small group of prominent public and private colleges are not doing their fair share for Ohio citizens in supporting socio-economic opportunity. Nationally, thirty-one percent of undergraduates receive Pell Grants, which are awarded to low-income students. In Ohio, almost thirty percent of full-time college students received Pell Grants, but at seven institutions the share of Pell recipients is much lower. What You Should Know:

Most Ohio universities enroll low-income students with Pell Grants at similar or better rates than the thirty-one percent national average, but seven Ohio schools lag far behind the nation and their peers when it comes to providing access to all students: Case Western Reserve University, Kenyon College, Miami University, Oberlin College, The Ohio State University, the College of Wooster, and the University of Dayton.

These seven schools receive a host of benefits and revenue from Ohio taxpayers, but they are not doing their fair share to serve all Ohioans.

Policy is required to make these schools do their fair share for low-income students.

The colleges highlighted in this report have received well over a billion dollars in support from Ohio taxpayers in the form of general state funding, student grant aid, and public tax subsidies that support public and private institutions of higher education.

In 2018, the State of Ohio provided $12.5 million in Ohio College Opportunity Grants (OCOG), awarded to low-income students at these seven low-access colleges.5

For the 2017-2018 school year, the state provided more than $530 million to The Ohio State University and more than $75 million to Miami University of Ohio.6

Since 2009, Ohio has issued over $1 billion in Higher Education Facility Bonds for large capital projects to the private colleges highlighted in this report.7

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At the end of fiscal year 2018, the seven colleges at issue had endowments ranging from $326 million at The College of Wooster to almost $1.9 billion at Case Western Reserve University and more than $5.2 billion at The Ohio State University.8

These very wealthy schools enroll relatively few low-income Ohio residents, but when they do, they receive larger per low-income pupil support from the state than other public colleges.

In 2018, Kenyon College, for example, received more than $3,000 per student in Ohio College Opportunity Grant aid, while Ohio’s public Historically Black College, Central State University, received barely one-tenth of that amount at $359 per student.9

For Ohio colleges that continue to not enroll their fair share of talented students from working-class and low-income families, we submit Ohio should institute a higher education access public service fee – similar to the recently enacted federal endowment tax – charged to colleges with indefensibly low Pell Grant student enrollment levels.

We also recommend that the revenue generated by a new Ohio higher education “Fair Share” service fee be directed to the OCOG program, augmenting funds to recipients and thus improving their chances of enrolling in and completing college.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 3 EMBARGOED UNTIL 12 NOON, 1/22/20 Introduction %PPMWRSX[IPP[MXL3LMSLMKLIVIHYGEXMSRɸ

Ohio’s most prestigious colleges and universities are the nation.14 Ohio’s private colleges and universities calcifying inequality rather than driving have played an important historical role in the upper socioeconomic mobility. Once-progressive institutions echelon of higher education. Oberlin College led the now cater mainly to wealthy students. And the state’s nation as the first coeducational college in the United Ohio College Opportunity Grant (OCOG) program States. In 1833, it became first in the nation to admit “excludes over 110,000 community college and African-Americans.15 By 1900, one-third of all Black regional campus students, who are more likely to professionals in America had a degree from Oberlin. come from low-income families.” 10 The Five Colleges of Ohio (Denison University, Kenyon College, Oberlin College,16 Ohio Wesleyan University, Although there are 32 states where the rate of college The College of Wooster) continue to draw students degrees, credentials or training is higher, the Buckeye from across the nation with their emphasis on State’s colleges and universities do offer much to YRHIVKVEHYEXIPMFIVEPEVXWIHYGEXMSRɸ celebrate.11 Ohio State University is the third largest public university in the nation with a national But a closer look reveals seven Ohio institutions of reputation for teaching, research, and athletics. The higher education that are failing students from state’s public universities awarded almost 450,000 working-class, low-income, and racial minority families bachelor’s degrees between 2009 and 2018,12 a 30 ERH EVI JEMPMRK XS HS XLIMV JEMV WLEVI JSV XLI WXEXIɸ percent increase.13 Case Western Reserve University is Consider the following seven institutions: 17 recognized as one of the leading STEM universities in

Case Western Reserve University 3LMS7XEXI9RMZIVWMX]ɸɸ 83% six-year graduation rate 83.7% six-year graduation rate 13% of freshmen received a Pell grant 16.7% of freshmen received a Pell grant SJJVIWLQIRVIGIMZIHWXEXIEMHɸ SJJVIWLQIRVIGIMZIHWXEXIEMHɸ )RHS[QIRX*YRHW&MPPMSRɸ )RHS[QIRX*YRHW&MPPMSRɸ Non-profit private university Public, Flagship R1 research university

Kenyon College The College of Wooster 89.3% six-year graduation rate (#1 in Ohio) 76% six-year graduation rate 9.4% of freshmen received a Pell grant (Last in Ohio) 17.3% of freshmen received a Pell grant SJJVIWLQIRVIGIMZIHWXEXIEMHɸ SJJVIWLQIRVIGIMZIHWXEXIEMHɸ )RHS[QIRX*YRHW1MPPMSRɸ )RHS[QIRX*YRHW1MPPMSRɸ Non-profit private college Non-profit private college 3FIVPMR'SPPIKIɸ University of Dayton 85.7% six-year graduation rate (#2 in Ohio) 77.7% six-year graduation rate 9.5% of freshmen received a Pell grant (Second to last in Ohio) 13.2% of freshmen received a Pell grant SJJVIWLQIRVIGIMZIHWXEXIEMHɸ 4.9% of freshmen received state aid )RHS[QIRX*YRHW1MPPMSRɸ 2018 Endowment Funds: $568.4 Million Non-profit private college Non-profit private Catholic college 1MEQM9RMZIVWMX]ɸ 79.3% six-year graduation rate 10.9% of freshmen received a Pell grant (Lowest among Ohio public universities) SJJVIWLQIRVIGIMZIHWXEXIEMHɸ )RHS[QIRX*YRHW1MPPMSRɸ Public, R2 research university

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 4 EMBARGOED UNTIL 12 NOON, 1/22/20 Low-Access Ohio Colleges

These seven Ohio colleges that severely underserve from households with less than $60,000 per year in working-class and low-income students are wealthy income.19 In Ohio, almost 30 percent of first-time, full-time enough to render their lack of access and consequent students attending four-year colleges between 2015 and socioeconomic diversity a matter of choice as much as 2017 were Pell Grant recipients. Among Ohio colleges, the budget. Some 31 percent of college students in America median Pell student enrollment rate was 36 percent.20 received a Pell Grant in 2018.18 The vast majority come

FIGURE 1: Count of Ohio 4-Yr Schools by Percent Pell Of First-Year Students 2014/15-2017/18

15 15 13 10

8 5 7 5 Count of Schools 3 0 2 0-10% 11%--20% 21%-30% 31%-40% 41%-50% 51%-60% 61%-100% Percent Pell IPEDS, 2014/15-2017/18

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At Oberlin, Kenyon, Miami, Case Western Reserve, Dayton, Ohio State, and Wooster colleges, the enrollment rate for of Pell +VERXVIGMTMIRXWMWJEVFIPS[XLIWXEXIEZIVEKIɸɸ

FIGURE 2: Three-Year Average Pell Rate, Select Ohio Institutions

Kenyon College 9.43% Oberlin College 9.46%

Miami University-Oxford 10.93%

Case Western Reserve University 13.05%

University of Dayton 13.17% Ohio State University - Main Campus 16.72% The College of Wooster 17.33% Dension University 20.77% University of Cincinnati - Main 21.30% Ohio University Main Campus 27.10%

OHIO AVERAGE 29.38% Kent State University at Kent 31.74%

Ohio Wesleyan University 35.02% OHIO MEDIAN 36.27%

University of Akron - Main Campus 41.04% Cleveland State University 45.12% Central State University 87.28% 0.00% 25.00% 50.00% 75.00% 100.00% IPEDS, 2014/15-2017/18

In fact, when it comes to enrolling working class and low-income students, Oberlin College and Kenyon College rank not only EXXLIFSXXSQSJEPP3LMSGSPPIKIWFYXEQSRKXLI[SVWXMRXLIREXMSRɸ21

FIGURE 3: 10 Lowest Pell Shares for First Year Students, Three-Year Average 12.50%

10.00% 10.48% 10.30% 9.67% 9.43% 9.46% 9.18% 8.77% 7.50% 8.41% 8.47% 8.49%

5.00% 3 Yr Avg Pell Share Pell Avg 3 Yr

2.50%

0.00%

Tulane Elon Wake Forest Washington Southern Kenyon Oberlin Santa Clara Scripps Tufts University of University University and Lee Methodist College College University College University Louisiana University University IPEDS, 2015/16-2017/18 A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 6 EMBARGOED UNTIL 12 NOON, 1/22/20

Over the past three years, Miami University of Ohio’s Pell share has ranked near the bottom of the nation’s public four-year colleges and universities.

FIGURE 4: 10 Lowest Pell Shares for First Year Students, Public Institutions, Three-Year Average

15.00%

13.53% 13.21% 13.47% 12.66% 12.86% 12.31% 12.44% 11.65% 10.00% 10.75% 10.93%

5.00% 3 Yr Avg Pell Share Pell Avg 3 Yr

0.00%

IPEDS, 2015/16-2017/18

Ohio State University might look good in comparison to Miami University, but it ranks low among its peers in the Great Lakes region.

FIGURE 5: First-Year Pell Rates, Great Lakes & Public Universities, Three-Year Average

Miami University-Oxford 10.72%

University of Wisconsin-Madison 12.19%

University of Michigan - Ann Arbor 14.90%

Ohio State University - Main Campus 16.59%

Purdue University - Main Campus 17.12%

Indiana University - Bloomington 18.64%

University of Minnesota - Twin Cities 19.02%

University of Cincinnati - Main Campus 21.34%

Michigan State University 21.37%

University of Illinois at Urbana-Champaign 22.32%

Ohio University Main Campus 26.80%

Bowling Green State University - Main Campus 32.93%

Wright State University - Main Campus 41.25%

Cleveland State University 45.16%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% IPEDS, 2015/16-2017/18

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 7 EMBARGOED UNTIL 12 NOON, 1/22/20

Case Western’s low Pell rate over the past three years is with Pell Grants, Case Western appears to be backing away concerning, but even more alarming is the steep decline from that commitment (see figure 6 below). Although that the rate has undergone over the past decade. Even with improved economic conditions in the Great Lakes region an uptick in 2017, its Pell share remains low among its might have reduced Pell Grant student shares at most Ohio peers (see figure 7 below). While many wealthy national universities, few have gone down as much as Case universities have been increasing their share of students Western’s. FIGURE 6: Case Western Reserve University First-Year Pell Share, 2007/8 to 2017/18

23.00% 21.45% 21.06% 20.19% 21.00% 19.99%

18.71% 18.40% 18.69% 19.00% 18.02%

17.00%

14.55% 14.59% 15.00%

13.00%

10.00% 9.97%

0.00% 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

IPEDS, 2007/08-2017/18

FIGURE 7: First-Year Pell Shares at National STEM Universities, Three-Year Averages

17.00%

15.00% 30.54%

25.49%

13.00%

17.25% 16.66% 16.73% 3 year pell 3 year 15.30% 13.05% 10.00% 12.40% 11.65%

0.00%

Georgia Institute California Institute Case Lehigh Stevens Rensselaer Massachusetts Wentworth Rochester of Technology - of Technology Western University Institute Polytechnic Institute of Institute of Institute of Main Campus Reserve Institute Technology Technology Technology

IPEDS, 2015/16-2017/18 A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 8 EMBARGOED UNTIL 12 NOON, 1/22/20

The College of Wooster has done a better job of enrolling diverse student body than its Five College peers. Denison’s low-income students than Oberlin and Kenyon have, but it admit rate is higher than Kenyon’s and Oberlin’s (while still lags behind the other two schools in the Five Colleges remaining very selective), but its share of students from consortium. In that group, Denison’s example is particularly working-class families is twice as large—a trade-off that we striking. It has maintained a national reputation for think is very much worth it. academic excellence while serving a more economically

FIGURE 8: Five Colleges of Ohio, Accessibility and Selectivity

Pell Share 15/16-17/18 Average Admit Rate 15/16-17/18

80.00%

72.56%

60.00% 56.62%

40.00% 42.65%

35.02% 30.11% 28.42% 20.00% 20.77% 17.33%

9.43% 9.46% 0.00%

Kenyon College Oberlin College The College of Wooster Denison University Ohio Wesleyan University IPEDS, 2014/15-2017/18

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 9 EMBARGOED UNTIL 12 NOON, 1/22/20 White & Wealthy Overall when it comes to racial and socioeconomic diversity combined, these seven colleges and universities are simply underperforming. Ohio’s population is 13 percent African-American, for example, but not one of these well-known institutions comes close to matching that percentage in its student body.22 FIGURE 9: Share of Undergraduates that are African-American, Three-Year Average 15.00%

13.00%

10.00%

8.82%

5.00% 5.88% 5.28% 4.32% 3.21% 3.52% 2.80%

0.00%

University of Miami Kenyon College Case Western Oberlin College Ohio State The College of POPULATION OF Dayton University-Oxford Reserve University - Main Wooster OHIO University Campus IPEDS, 2016-2018

Ohio State University might look good in comparison to Miami University, but it ranks low among its peers in the Great Lakes region.

FIGURE 10: Share of First-Year Students Receiving Government Grants, Three-Year Average % Receiving Federal Grants % Receiving State/Local Grants

20.00%

17.33% 16.76% 15.00%

13.13% 13.17% 12.42%

10.00% 9.46% 10.69% 9.43%

5.00% 6.02% 6.21% 6.25% 4.93%

1.89% 1.33% 0.00% Kenyon College Oberlin College Miami University-Oxford Case Western Reserve University of Dayton Ohio State The College of Wooster University University - Main Campus

IPEDS, 2015/16-2017/18 A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 10 EMBARGOED UNTIL 12 NOON, 1/22/20

Perhaps an even better picture of the great disparities in wealth at these schools is the share of students who can attend [MXLSYXXEOMRKSYXJIHIVEPWXEXISVMRWXMXYXMSREPPSERWXSTE]JSVWGLSSPɸ

FIGURE 11: Share of Students Receiving Any Financial Aid and Share With Loans, Three-Year Average

% Receiving Any Financial Aid % with Student Loans

100.00%

99.05% 96.99%

86.87% 75.00% 82.88% 84.08% 78.09%

62.15% 50.00% 54.75% 60.27% 50.63%

38.78% 39.35% 40.05%

25.00% 30.73%

0.00% Kenyon College Ohio State Miami Oberlin College The College of University of Dayton Case Western University - Main University-Oxford Wooster Reserve University Campus IPEDS, 2015/16-2017/18

At more than half of the seven colleges identified here a unable to pay full tuition but wealthy enough to pay a majority of students take out no loans at all.23 The main source significant portion of it as opposed to a reward of true merit. of aid enrolled students receive at these schools is so-called These schools highlighted are courting wealthy students, and merit aid, which is often a discount offered by colleges they do so at a cost to low- and middle-income families and designed to attract upper-middle class students unwilling or XSXLI7XEXISJ3LMSɸɸ

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 11 EMBARGOED UNTIL 12 NOON, 1/22/20 Ohio Student Financial Aid (OCOG)

Each of the seven colleges highlighted in this report result, many OCOG-eligible students need to take for their low commitment to enrolling working-class out loans and/or work part- or full-time to pay for and low-income students receives funding from the books, housing, food, childcare, and other expenses.25 state and its taxpayers in the form of Ohio College Opportunity Grants (OCOG). Ohio residents with an Because tuition is very low at Central State expected family contribution for a year of higher University it receives much less per student through education of $2,190 or less and a maximum OCOG grants than do the institutions highlighted in household income of $96,000 are eligible for OCOG this report. Community college tuition is low, so few grants of up to $2,000 at most public universities or community college students receive any support $3,500 at most private, not-for-profit institutions.24 from OCOG. Conversely, Oberlin and Kenyon enroll a But because OCOG aid is linked to tuition and fees, tiny number of students who receive OCOG aid, but the richest colleges end up getting the most in state they collect more per OCOG grant than any other student financial aid assistance per eligible student college in Ohio, because they have much higher while the poorest colleges get the least--even published tuition and fee levels. The same is true at though their demonstrated commitment to enrolling for-profit colleges, which typically have terrible needy students is greater. Additionally, OCOG is a outcomes for students. last-dollar grant, meaning that funds only cover the tuition and fees not covered by federal grants. As a

FIGURE 12: Distribution of OCOG Funds 23 13 71 30 Community Public 4- Year Private 4- Year For Profit 4- Year Colleges Colleges Colleges Colleges Serving Serving Serving Serving 171,521 328,134 136,07 11,226 Students Students Students Students

Received Received Received Received $159,342 in $53,672,168 in $44,347,168 in $3,449,946 in OCOG Grants in OCOG Grants in OCOG Grants in OCOG Grants in 2017-18 2017-18 2017-18 2017-18

Ohio Department of Higher Education. 2018. “Summary of Program Expenditures By Institution 2017-18”

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Kenyon only enrolled nine students per year with OCOG funding, on average, between 2015 and 2017. 26 Oberlin enrolled just ten students per year that received OCOG funding.27 And yet those students received thousands more dollars each in OCOG funding than do the students at Central State, who only receive $359 each on average. 28

FIGURE 13: Number of First-Year Students Receiving State/Local Grants, Three-Year Average

800 789

600

400

Count ( 3 YR AVG) 200 229 245

102 9 10 79 0 35

Kenyon College Oberlin College The College of Case Western University of Dayton Miami Central State Ohio State Wooster Reserve University University-Oxford University University - Main Campus IPEDS, 2015/16-2017/18

FIGURE 14: Revenue per Enrolled Ohio College Opportunity Grant Recipient (2018) $4000

$3,000 $3,077.00 $2,909.32 $3,038.61 $2,841.60 $2,772.26 $2,000 $2,430.72

$1,000 $1,050.73

$358.69 $0

Oberlin College Kenyon College

University of Dayton Case Western Reserve The College of Wooster Central State University Miami University-Oxford

Ohio State University - Main

Ohio Department of Education, 2017-2018

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 13 EMBARGOED UNTIL 12 NOON, 1/22/20 Ohio Tax Subsidies for Colleges and Universities

Private colleges and universities such as Case Western, Dayton, Kenyon, and Oberlin also have received substantial state support in the form of Higher Education Facilities Bonds issued by the State of Ohio to subsidize capital projects. Debt and the associated interest expense are recorded on the financial records of the state ledger and do not appear on the records of individual institutions.29 Consider the large amount of support provided to low-access institutions.30

FIGURE 15: Ohio Higher Education Facilities Bonds

INSTITUTION BONDS ISSUED TOTAL VALUE OF BONDS Case Western Reserve University 6 Over $400 million University of Dayton 4 Over $263 million Kenyon College 4 Over $230 million Oberlin College 3 Over $195 million College of Wooster 2 Over $25 million

Moody’s credit rating of the Ohio Higher Education Facility Commission. 2009-2019.

Ohio’s sole private HBCU, Wilberforce University, appears not to have issued any Higher Education Facilities Bonds, which is more evidence that Ohio provides relatively little support to its HBCUs, even though at least one national report shows that they provide more than $124 million in economic value each year to the state and are responsible for more than 1,200 jobs.31

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 14 EMBARGOED UNTIL 12 NOON, 1/22/20 Failing on Social Mobility Privately, college leaders with extraordinary low levels of like the ACT. If schools take socioeconomic context into working-class and low-income student enrollment make consideration, the pool of academically qualified students what is called the “shallow pool" argument to explain their from working-class and low-income families capable of low levels of socioeconomic diversity; that is that there attending relevant low-access colleges is even deeper simply are not enough academically qualified than ACT data suggests. [SVOMRKGPEWWERHPS[MRGSQIWXYHIRXWXSIRVSPPɸ The evidence from highly selective institutions and state Contrary to some elite college leaders claims, the pool of flagships in the last decade that have increased Pell Grant academically talented, working-class and low-income student enrollment is clear. If there is institutional will, students is quite deep. Looking at just ACT data, some 20 colleges and universities can significantly increase their percent of students who score in the 90th percentile or Pell shares while maintaining the academic excellence of higher on that college admissions test come from families their student body and their prestigious reputations. The earning less than $50,000 a year. 32 Consider, too, that it is following graph shows institutions that have improved harder for a working-class or low-income student, who their percentage enrollment of Pell recipients. Students typically has not benefited from commercial test and faculty report the institutions are better off preparation and a lifetime of training among other academically for having made the effort.33 advantages, to attain a high score on an admissions test

FIGURE 16: Some Institutions Where Pell Share Among First-Year Students Has Grown Significantly

IPEDS, 2008/09-2017/18

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Privately, low access college representatives sometimes is negligible. At Kenyon College, Pell recipients actually argue that enrolling more Pell Grant recipients is unwise KVEHYEXIEXELMKLIVVEXIXLERWXYHIRXW[MXLSYX4IPP+VERXWɸ because they are unlikely to succeed at the relevant And while the gaps at Dayton, Miami, and Ohio State are institutions. But in fact, at most of the Ohio universities undesirable, Pell Grant recipients still graduate at rates highlighted in this report, the graduation gap between Pell substantially higher than the national average of 60 Grant recipients and students who did not receive Pell Grant percent.34

FIGURE 17: Pell vs. Non-Pell 6 Year Graduation Rates, Three-Year Average

Pell Grant Rate Average Non-Pell Grant Rate Average

100.00%

90.67% 89.33% 87.00% 86.33% 83.33% 84.00% 80.00% 82.00% 80.33% 75.00% 76.00% 76.67% 74.33% 69.67% 69.67%

50.00%

25.00%

0.00% Kenyon College Oberlin College Case Western Reserve Ohio State University- The College of Wooster Miami University-Oxford University of Dayton University Main Campus IPEDS, 2016-2018

These seven Ohio colleges ignore social mobility at their own peril. In 2018, US News and World Report revised its methodology for calculating its 2019 Best Colleges list to include a measurement for social mobility, based on Pell share and Pell graduation rates.35 The change hit several Ohio schools hard:

In the 2018 rankings, Miami University was ranked #78 among National Universities.36 Under the new methodology, it dropped to #96 in the 2019 rankings.37

Oberlin and Kenyon both fell from #26 to #30 among National Liberal Arts Colleges.38

Case Western dropped from #37 to #42 among National Universities.39

This decline in the rankings could make it harder for these schools to recruit students nationally and imperil their ability to enroll wealthy students and academically gifted ones, too.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 16 EMBARGOED UNTIL 12 NOON, 1/22/20 FIGURE 18: Liberal Arts Colleges, 3 year Pell Share 2017/18 Estimated Median Combined SAT Score, 2017

Washington and Lee University (1396) 8.48% Oberlin College (1364) 9.47%

Kenyon College (1359) 9.69%

Bucknell University (1312) 9.87%

Colgate University (1388) 12.14%

Davidson College (1353) 14.48%

Middlebury College (1394) 15.32%

Occidental College (1315) 20.38%

Denison University (1318) 20.49%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

College Results Online, 2019

There are many colleges with comparable or higher admissions standards, in terms of median ACT/SAT scores and high school GPA, that enroll a notably higher proportion of Pell Grant recipients.

FIGURE 19: Public Universities, 3 year Pell Share 2017/18 Estimated Median Combined SAT Score, 2017

Miami University-Oxford (1276) 10.72% University of Maryland-College Park (1337) 13.93% University of Michigan-Ann Arbor (1386) 14.90% University of Vermont (1216) 16.54% Ohio State University-Main Campus (1296) 16.59% Indiana University- Indiana University-BloomingtonBloomington 18.64% University of Connecticut (1248) 18.98% University of Minneso-Twin Cities (1288) 19.02% University of Massachusetts-Amherst (1234) 20.39% University of Iowa (1165) 22.08% University of Illinois at Urbana-Champaign (1320) 22.32% 27.08% Rutgers University-New Brunswick (1230) 27.08%

0.00% 10.00% 20.00% 30.00% College Results Online, 2019 A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 17 EMBARGOED UNTIL 12 NOON, 1/22/20 Our Recommendation: “Higher Ed Accountability Now”

Ohio remains an undereducated state with too many the Workforce and one consistent with proposed pockets of concentrated poverty. One way to reverse federal legislation.43 these conditions is to make education affordable. Between 2015 and 2017, almost 85 percent of 8LI WXEXI LEW WIX Eɸ KSEP JSV TIVGIRX SJ 3LMSƅW American public colleges and universities enrolled [SVOMRKEKI EHYPXWɸ XS SFXEMR E GSPPIKI HIKVII SV first-year classes that comprised more than 20 some type of advanced training by 2025.40 But with percent Pell Grant recipients.44 Our proposal would six years to go, Ohio is 21 percentage points away require colleges such as Ohio State and Miami from its target.41 About 44 percent of Ohio’s 6 million University merely to place themselves in the middle or so residents aged 25 to 64 have a college degree, of the pack, rather than trailing far in the back as they certificate or training in a skilled trade, according to are now. We suggest a state tax on endowment the Ohio Department of Higher Education. That’s up wealth equivalent to one-tenth of each percentage nine percentage points from a little over a decade point that the institution misses the 20 percent ago, but Ohio still ranks in the bottom third minimum goal. nationwide in terms of postsecondary education attainment.42 For instance, Oberlin, whose three-year average Pell rate is 9.46 percent, is 10.54 percentage points off Sunshine and shame are not enough to get wealthy, the minimum goal, so it would pay a 1.054 percent inexcusably low-access colleges and universities to tax on its $905.9 million endowment. Using a enroll a greater share of academically talented three-year sliding average, Oberlin’s annual tax would students from working-class and low-income be roughly $9.55 million. Total revenue from these families. Legislation is required. seven Ohio colleges, if they do not improve working-class and low-income student access, We suggest a public service fair share endowment would be more than $52 million. fee on engines of inequality such as Oberlin, Kenyon, Miami, Case Western, Ohio State, Wooster, and Every dime raised by the Fair Share fee should go to Dayton, paid each year they fail to enroll a first-year increasing funding for the OCOG program and class with at least 20 percent of students receiving a expanding its reach. Ohio has become one of the Pell grant – a working-class and low-income student most expensive states for residents to attend enrollment target level recommended by college, and OCOG underfunding and inequitable Georgetown University’s Center on Education and design has left many students wanting.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 18 EMBARGOED UNTIL 12 NOON, 1/22/20 FIGURE 20: WHAT PERCENT OF FAMILY INCOME would be needed to attend college full time?

Percent of Percent of Ranking* Income 2008 Income 2008

Public Two-Year 17 18 28 (29 percent of enrollment) Pubic Four-Year Non-doctoral 27 26 23 (10 percent of enrollment) Public Research 33 37 47 (39 percent of enrollment) Private Four-Year Non-doctoral (18 percent of enrollment) 42 46 27 Private Research (3 percent of enrollment) 43 58 24

Source: UPenn, Institute for Research on Higher Education, 2019

OCOG is increasingly essential for Ohio working class and For-profits charge a higher tuition, so students at those low-income students to earn a post-secondary degree. In schools can earn more Ohio grant aid by going to one. 2016, Ohio ranked last among Great Lakes states and 45th Ohio’s community colleges received just $159,342 in total among all states for college affordability. Its public funding in 2018; for-profit colleges received $3,449,946.47 research universities ranked as the fourth most expensive in the nation.45 Further, because OCOG provides no funding OCOG is in dire need of reform, and that will take more beyond tuition and fees, it excludes more than 100,000 revenue. The proposed Ohio Fair Share Plan can help. students at community and regional colleges, where relatively low tuition and fees are already covered by Pell The state’s OCOG program should offset a student’s true Grants.46 The real cost of college including books, cost of attendance, not just tuition and fees. It should be transportation, housing, and food remains to be paid by equitable in its funding per student. And it should assist students, who often need to work full-time and take out students at community colleges. According to a report by loans to remain enrolled. Doing so decreases their odds of Policy Matters Ohio, the state needs to invest an additional graduating, earning more later in life, and paying higher $149.1 million per year in OCOG in order to meet the needs amounts in future taxes. So too does OCOG’s funding of all Ohio students.48 The proposed Ohio Fair Share Plan formula, which perversely provides an incentive to students would offset more than one-third of that total at no to attend for-profit schools with terrible outcomes. cost to taxpayers.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 19 EMBARGOED UNTIL 12 NOON, 1/22/20 FIGURE 21: Revenue That Could Be Collected from Fair Share Fee

Institution Name “Fair Share” Public Service Fee The College of Wooster $871,210.32 Kenyon College $3,881,994.42 Miami University-Oxford $4,374,542.48 University of Dayton $4,849,602.02 Oberlin College $9,548,681.38 'EWI;IWXIVR6IWIVZIɸ $13,112,988.95 The Ohio State University $17,093,503.52 TOTAL $53,732,523.09

Naturally, the low-access Ohio colleges highlighted here will percent before the Fair Share fee is imposed on their object to redirecting their revenue to serve students at other endowments. The disparity in wealth among Ohio colleges schools, but they can avoid that phenomenon by increasing is hard to comprehend. The wealth of the highlighted seven their share of Pell Grant students enrolled. We submit they colleges is anywhere from 40 times to more than 2,000 should have four years to raise their Pell Share to twenty XMQIWPEVKIVXLEREX3LMSƅWTYFPMG,&'9'IRXVEP7XEXIɸ49

FIGURE 22: FY 2018 Endowment Size (IN $1000s)

6,000,000

5,211,434

4,000,000

2,000,000 1,886,761

905,947 568,374 413,864 534,686 138,038 239,622 326,296 0 2,597 7,436

2018 NACUBO-TIAA Study of Endowments

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 20 EMBARGOED UNTIL 12 NOON, 1/22/20 Conclusion Ohio deserves to be proud of its historic and prominent WSGMSIGSRSQMG QSFMPMX]ɸ 3YV VIGSQQIRHEXMSR MW RSX ER place in higher education, but that place is at risk as the effort to punish Ohio’s higher education institutions under inequality currently plaguing American society infects the serving students from working-class and low-income very universities and colleges that for generations have families; it’s an attempt to rescue them, better serve been the most powerful tools we have had for promoting students, and better serve the state overall.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 21 EMBARGOED UNTIL 12 NOON, 1/22/20 Endnotes

1. Protopsaltis, Spiros and Sharon Parrott. 2017. “Pell Grants — a Key 12. Ohio Department of Higher Education. 2019. “Degrees and Tool for Expanding College Access and Economic Opportunity — Certificates Awarded by Ohio Public Institutions, Fiscal Years 2009 to Need Strengthening, Not Cuts.” (Center on Budget and Policy 2018.” (Ohio Department of Higher Education). Priorities). Figure 1. https://www.ohiohighered.org/sites/default/files/uploads/data/statis https://www.cbpp.org/sites/default/files/atoms/files/7-27-17bud.pdf tical-profiles/completions/completions_09_18.pdf

2. College Board. 2019. “Trends in College Pricing: 2019.” (The College 13. Ibid. Board). Table 20A. https://research.collegeboard.org/pdf/trends-student-aid-2019-full-re 14. Case Western Reserve website. 2019. “Rankings.” port.pdf https://case.edu/about/rankings.html

3. Analysis of 2015-16, 2016-17, and 2017-18 Integrated Postsecondary 15. Ohio History Connection. 2019. “Oberlin College.” (Ohio History Education Data System (Hereafter IPEDS 15-18). National Center for Central). http://ohiohistorycentral.org/w/Oberlin_College Education Statistics. All data pulled in November 2019. Throughout this report, Ohio data are taken from IPEDS and are limited to 16. Mack, D. 2010. “Oberlin College (1833- ).” (Black Past). first-time, full-time students at four-year, degree granting institutions. https://www.blackpast.org/african-american-history/oberlin-college-1 Ohio’s Pell share would increase significantly if two-year institutions 833/ and for-profit schools were included, where the numbers of students with Pell Grants tend to be greater than at four-year institutions. 17. All data come from the U.S. Department of Education Integrated Postsecondary Education Data System (IPEDS) and reflect first-time, 4. Analysis of IPEDS 15-18. National Center for Education Statistics. All full-time students data pulled in November 2019. 18. College Board. 2019. “Trends in College Pricing: 2019.” (The College 5. Ohio Department of Higher Education. 2018. “Summary Of Program Board). Table 20A. Expenditures By Institution 2017-18.” (Ohio Department of Higher https://research.collegeboard.org/pdf/trends-student-aid-2019-full-re Education). port.pdf https://www.ohiohighered.org/sites/ohiohighered.org/files/uploads/s gs/expenditures/EXPEND_FY2018.pdf 19. Protopsaltis, Spiros and Sharon Parrott. 2017. “Pell Grants — a Key Tool for Expanding College Access and Economic Opportunity — 6. Office of Business & Finance Financial Planning & Analysis, 2018. “FY Need Strengthening, Not Cuts.” (Center on Budget and Policy 2019 Budget Plan.” (The Ohio State University). Priorities). Figure 1. https://busfin.osu.edu/sites/default/files/fy19_operating_budget_-_th https://www.cbpp.org/sites/default/files/atoms/files/7-27-17bud.pdf e_ohio_state_university.pdf. Budget Office. 2018. “Budget Highlights 2017-18.” (Miami University). 20. Analysis of IPEDS 15-18. National Center for Education Statistics. All https://miamioh.edu/fbs/budget/budget-info/university-budget/highli data pulled in November 2019. ghts/ 21. Analysis of IPEDS 15-18. National Center for Education Statistics. All 7. Data analyzed from Moody’s credit ratings of the Ohio Higher data pulled in November 2019. This ranking excludes colleges that do Educational Facility Commission, 2009-2019. Data pulled in not accept federal financial aid or enroll fewer than 100 first-time, November 2019. full-time students each year. It also excludes for-profit colleges and https://www.moodys.com/credit-ratings/Ohio-Higher-Educational-Fac US military academies. ility-Commission-credit-rating-600028386 22. US Census Bureau. 2018. “Quick Facts: Ohio.” 8. National Association of College and University Business Officers. https://www.census.gov/quickfacts/fact/table/US/RHI225218 2019. “2018 NACUBO-TIAA Study Of Endowments (NTSE) Results.” (National Association of College and University Business Officers). 23. Because IPEDS relies on students who apply for the FAFSA, it is Table: Number of U.S. Institutional Respondents to the 2018 NTSE, possible that some students at any university who received loans, aid, and Respondents' Total Endowment Market Value, by Endowment or scholarships from a private entity do not appear in the data. It is Size and Institution Type. unlikely, however, that a significant number of low- or middle-income https://www.nacubo.org/Research/2019/Public-NTSE-Tables students would be able to pay for college without some form of federal aid. 9. Ohio Department of Higher Education. 2018. “Summary Of Program Expenditures By Institution 2017-18.” (Ohio Department of Higher 24. Ohio Department of Higher Education. 2019. “Ohio College Education). Opportunity Grant (OCOG).” https://www.ohiohighered.org/ocog https://www.ohiohighered.org/sites/ohiohighered.org/files/uploads/s gs/expenditures/EXPEND_FY2018.pdf 25. Victoria, Jackson. 2019. “Building better need-based aid in Ohio.” (Policy Matters Ohio). Executive Summary. 10. Victoria, Jackson. 2019. “Building better need-based aid in Ohio.” https://www.policymattersohio.org/files/research/ocogfy20-21report. (Policy Matters Ohio). Executive Summary. pdf https://www.policymattersohio.org/files/research/ocogfy20-21report. pdf 26. Analysis of IPEDS 15-18. National Center for Education Statistics. All data pulled in November 2019. IPEDS does not specify the type of 11. Ibid. state grant aid, but OCOG is the grant that is provided in Ohio, so it is possible to equate the number of students receiving state grants with those receiving OCOG grants. Any error, due for instance to a student from a bordering state which allows students to use state aid in a nearby state, would drive the number of Ohio residents with state aid even lower at these schools.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 22 EMBARGOED UNTIL 12 NOON, 1/22/20

27. Ibid. 43. Carnevale, Anthony P. and Martin Van Der Werf. 2017. “The 20% Solution: Selective Colleges Can Afford to Admit More Pell Grant 28. Ohio Department of Higher Education. 2018. “Summary Of Program Recipients.” (Georgetown Center on Education and the Workforce). Expenditures By Institution 2017-18.” (Ohio Department of Higher https://cew.georgetown.edu/wp-content/uploads/The-20-Percent-Sol Education). ution-web.pdf https://www.ohiohighered.org/sites/ohiohighered.org/files/uploads/s gs/expenditures/EXPEND_FY2018.pdf 44. Analysis of IPEDS 15-18. National Center for Education Statistics. All data pulled in November 2019. 29. Ohio Department of Higher Education. 2018. “Higher Education Facilities Bonds.” https://www.ohiohighered.org/node/231 45. Institute for Research on Higher Education. 2016. “College Affordability Diagnosis.” (Graduate School of Education, University of 30. Data analyzed from Moody’s credit ratings of the Ohio Higher Pennsylvania). http:// Educational Facility Commission, 2009-2019. Data pulled in www2.gse.upenn.edu/irhe/affordability-diagnosis November 2019. https://www.moodys.com/credit-ratings/Ohio-Higher-Educational-Fac 46. Victoria, Jackson. 2019. “Building better need-based aid in Ohio.” ility-Commission-credit-rating-600028386 (Policy Matters Ohio). https://www.policymattersohio.org/files/research/ocogfy20-21report. 31. United Negro College Fund. 2018. “HBCUs Make America Strong: The pdf Positive Economic Impact of Ohio’s Historically Black Colleges and Universities.” (UNCF). 47. Ohio Department of Higher Education. 2018. “Summary Of Program https://www.uncf.org/wp-content/uploads/PDFs/fy_2018_budget_fac Expenditures By Institution 2017-18.” (Ohio Department of Higher t_sheets/HBCU_FactSht_Ohio_5-17D.pdf Education). https://www.ohiohighered.org/sites/ohiohighered.org/files/uploads/s 32. Dannenberg, Michael and Mary Nguyen Barry. 2014. “Tough Love: gs/expenditures/EXPEND_FY2018.pdf Bottom-Line Quality Standards for Colleges.” (The Education Trust). Figure 5. 48. Victoria, Jackson. 2019. “Building better need-based aid in Ohio.” https://edtrust.org/wp-content/uploads/2013/10/ToughLove_0.pdf (Policy Matters Ohio). Executive Summary. https://www.policymattersohio.org/files/research/ocogfy20-21report. 33. PBS Newshour. 2015. “Should Financial Aid Only go to College pdf Students in Need?” (PBS). https://www.pbs.org/newshour/show/financial-aid-go-college-studen 49. National Association of College and University Business Officers. ts-need 2019. “2018 NACUBO-TIAA Study Of Endowments (NTSE) Results.” (National Association of College and University Business Officers). 34. NCES. 2019. “Fast Facts: Graduation Rates.” (National Center for Table: Number of U.S. Institutional Respondents to the 2018 NTSE, Education Statistics). and Respondents' Total Endowment Market Value, by Endowment https://nces.ed.gov/fastfacts/display.asp?id=40 Size and Institution Type.). https://www.nacubo.org/Research/2019/Public-NTSE-Tables 35. Morse, Robert and Eric Brooks. 2018. “What's New in the 2019 U.S. News Best Colleges Rankings.” US News and World Report. https://www.usnews.com/education/blogs/college-rankings-blog/arti cles/2018-09-10/whats-new-in-the-2019-us-news-best-colleges-rankin gs

36. Johnson, Carole. 2017. “Creative teaching earns Miami No. 1 public university ranking for faculty commitment.” (Miami University) https://miamioh.edu/news/top-stories/2017/09/usnews-ranking.html

37. Anonymous. 2018. “Miami among best schools in the nation for commitment to students.” (Miami University) https://miamioh.edu/news/top-stories/2018/09/usnews-teaching.ht ml

39. Reiter, Andrew G. 2020. “U.S. News & World Report Historical Liberal Arts College and University Rankings.” http://andyreiter.com/datasets/

40. Ibid.

41. Ohio Department of Higher Education. 2018. “The Case for Ohio Attainment Goal 2025.” https://www.ohiohighered.org/sites/ohiohighered.org/files/uploads/a ttainment/attainment-framing-paper_FINALb_050416.pdf

42. Ibid.

43. Ibid.

A FAIR SHARE PLAN FOR OHIO | EDUCATION REFORM NOW · 23 EMBARGOED UNTIL 12 NOON, 1/22/20

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