Ohio Technical Centers

Performance-Based Funding Formula

Am Sub H.B. 59 required the Chancellor of the Board of Regents, the Superintendent of Public Instruction, and the Governor’s Office of Workforce Transformation to hold a series of consultations with the Ohio Technical Centers to develop an appropriate funding formula to distribute funds based on student outcomes, beginning in fiscal year 2015.

In order to develop a performance-based funding model for postsecondary workforce certificate programs for adults at the Ohio Technical Centers (OTC), the Chancellor asked Ohio Board of Regents staff to convene a group of stakeholders that ensured that the process was driven by the Ohio Technical Centers. This group included superintendents, adult program directors and OTC treasurers recommended by the Ohio Association of Career Technical Superintendents (OACTS) and the Ohio Association of Career Technical Education’s Postsecondary Adult Career Education (ACTE PACE). The stakeholder group began meeting in Fall 2013 and also included representation from the Ohio Department of Education, the Governor’s Office of Workforce Transformation and Ohio Board of Regents staff.

In FY 2015, the State of Ohio appropriation for the Ohio Technical Centers is $15,817,547. $400,000 is to be distributed to the Ohio Central School System, $48,000 will be used for accreditation assistance for Ohio Technical Centers, and $975,000 shall be distributed to the 39 Ohio Technical Centers that provide business consultation with matching local dollars. Centers meeting this requirement will receive an amount not to exceed $25,000 per center. The OTC Performance Funding Consultation Group proposed the remainder be disbursed through a performance-based formula in FY 2015 calculated with a three-year average and based on a full-time equivalent of 450 clock hours on four major performance metrics, retention, completion, credential, employment. These metrics will be:

  • Retention – 20% shall be distributed based each Center’s full-time equivalent students who complete 50 % of an approved program of study as a measure of student retention.
  • Completion – 25% shall be distributed based on each Center’s full-time equivalent students who successfully complete a post-secondary workforce training program approved by the Chancellor with a grade of C or better or grade of pass if pass/fail basis.
  • Credential – 5% shall be distributed based on the proportion of each Center’s full-time equivalent students to the total full-time equivalent students who have earned a credential from an industry recognized third party.
  • Employment – 50% shall be distributed based on each Center’s full-time equivalent students who have found employment, military service or additional post-secondary education and training. The calculation for eligible full-time equivalent students shall be based on students who have completed at least 50 percent of a program of study.

The OTC Performance Funding Consultation group recommended phase-in of this formula in FY2015, with no Ohio Technical Center to receives less than 96% of the prior three year average, funds shall be made available to support this phase-in allocation by proportionally reducing the formula earnings from each center not receiving phase-in funding.