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Ohio Laws and Rules
(A) Intent and authority
(1) It is the intent o the Ohio Board of Regent in promulgating this rule to establish procedures to govern the allocation of state capital appropriations for higher education purposes.
(2) This rule is adopted under authority conferred upon the Ohio Board of Regents by section 3333.072 of the Revised Code pursusant to section 119.03 of the Revised Code.
(B) Definitions For purpose of this rule:
(1) “Eligible campus” shall be defined as a state university or college as defined in division (A)(1) of section 3345.12 of the Revised Code, a community college as defined in Chapter 3354. of the Revised Code, a state community college as defined in Chapter 3358. of the Revised Code, a technical college as defined in Chapter 3357. of the Revised Code and the regional campuses of a state college or university defined in division (A)(1) of section 3345.12 of the Revised Code.
(2) “Community project” shall be defined as a state capital appropriation for a facility that is owned by, or will be owned by, an entity which has a 501 (c)(3) designation from the internal revenue service or a public body established by the laws of Ohio for the exercise of any function of government. The community project must be made available for use by a higher education institution and the extent and nature of that use must be reasonably related to the amount of the appropriation.
(C) Determination of state capital recommendations for higher education purposes
(1) The office of budget and management will notify the board of regents of the total amount of state capital funds that will be available for higher education purposes and will provide general guidance for allocation of capital funds for statewide projects, institutional allocations, and basic renovations. The board of regents, in consultation with representatives of eligible campuses, and othe entities as determined b the Regents, shall:
(a) Determine the method of allocating state capital funds for special purposes.
(i) Special purposes may include buy not be limited to funding for consortial entities authorized in division (V) of section 3333.04 of the Revised Code, research equipment or facilities non -credit job training facilities, the acquisition of instructional technology, renovation projects of limited scope, and collaborative projects.
(ii) The method of allocation may include formula-based allocations, competitive proposals, requirements for collaboration by eligible campuses, requirements for matching funds, direct grants of funds, and/or any other method of allocation that the regents determines is necessary and proper.
(2) Major capital projects.
(a) The purpose of distributing funds under this paragraph is to provide each eligible campus with state resources to renovate or replace existing facilities or construct new facilities.
(b) The amount allocated to each eligible campus shall be expressed both in state appropriations and in the debt service equivalent of those same state appropriations. The debt service equivalent of the state capital appropriation shall be determined from the information supplied from the office of budget and management regarding the term and rate of current state bond sales.
(c) The amount allocated to each eligible campus shall be on a formula which includes each eligible campus’ relative share of the valued activities and the volume of aged space.
(i) The measure of eligible campus activity shall include consideration of the plant operation and maintenance cost of providing credit-hours of instruction, weighted by the volume of sponsored research expenditures and non-credit job-related training expenditures that occur on each campus.
(a) An adjustment may be included to provide campuses with low enrollments an additional increment as determined by the board of regents.
(b) The measure of aged space shall only include educational and general space at each eligible campus, and shall weight older facilities more heavily.
(c) Measures of eligible campus activity and aged space shall be equally weighted in determining each campus’ share of total resources available under this paragraph. The relative weights of these two factors may be changed by the board of regents, following consultation with representatives from eligible campuses and with the permission of the office of budget and management.
(d) Each eligible campus shall earn the debt service equivalent of state capital resources allocated through the formula described in this rule.
(3) Capital requests from eligible campuses.
(a) Requests from eligible campuses for state capital support shall be submitted to the Board of Regents according to the schedule and conditions determined by the Board of Regents.
(b) The Board of Regents shall calculate the debt service equivalent of each eligible campus capital request.
(c) Each eligible campus shall be responsible for the debt services equivalent associated with its state capital requests funded through the formula described in paragraph (C)(2) of this rule.
(i) If the debt service equivalent for an eligible campus exceeds the value of the debt service earnings, the Board of Regents shall deduct the difference from future general purpose state operating appropriations to the eligible campus.
(ii) If the debt service equivalent for an eligible campus is less than the value of the debt service earnings, the board of regents shall add the difference to the share of debt service earnings for the eligible campus. The eligible campus shall receive the debt service earnings through a specific purpose state operating appropriations line item.
(iii) No campus shall be responsible for the debt service equivalent for any project deemed to be a community project. The director of the office of budget and management shall determine the specific capital appropriations to eligible campuses that are community projects.
(iv) No campus shall be responsible for the debt service equivalent for any project or portion of a project funded to address space shortage conditions as determined by the board of regents. Such a determination may include but not limited to the following factors; enrollment levels, enrollment growth, the size and condition of existing facilities, facility utilization rates, and the existence of alternate methods of delivering instructions.
Effective: 09/30/2006
R.C. 119.032 review dates: 09/30/2011
Promulgated Under: 119.03
Statutory Authority: ORC 3333.072
Rule Amplifies: ORC 3333.072