Proposed scholarships would benefit Ohio in long run, economists say

(The Center Square) – As the Ohio Senate continues to debate the state budget, a group of economists believe eliminating a planned college merit scholarship program could send more students out of state.

DeWine wanted to increase the eligibility and the amount of the Ohio College Opportunity Grant scholarships with his proposed budget and give a $5,000 scholarship to every Ohio high school student who finished in the top 5% of their class. Instead, the Ohio House removed the increase and the merit scholarships when it passed the budget earlier this month.

The Senate continues to debate the budget, which must pass and be signed into law by July 1.

Scioto Analysis, a Columbus-based economic and public policy analysis organization, surveyed 17 economists at colleges and universities around the state, and 13 of those said the scholarships could help combat “brain drain,” when students leave the state for higher education and jobs.

“Keeping high-achievement students in Ohio for college is a good way to increase the likelihood that they ultimately become workers in the Ohio workforce,” said Kathryn Wilson, a professor at Kent State.

Some economists were uncertain, but none disagreed that the scholarships could help keep Ohio students in Ohio.

“I am not sure how much this would actually keep high-performing students in state for college,” said Curtis Wilson, also of Kent State. “Out-of-state tuition is much higher so some will stay in state anyways, but these are all high-performing students who may get scholarships anyway. Furthermore, it is not clear that they would stay after college.”

Ten of the 17 responding to the survey believed the scholarship benefits would outweigh the taxpayer costs and only four of the 17 thought the scholarships would increase inequality.

The program awards grants to Ohio residents with the highest needs levels based on federal financial aid applications. Currently, students receive $2,700 to attend a public institution and $4,200 to attend a nonprofit school.

DeWine proposed increases to $216.2 million in fiscal year 2024 in his budget for the state-funded Ohio College Opportunity Grant to Ohio colleges and universities and another $336.1 million in 2025. That would give qualifying students $4,000 for a state school and $5,000 for a private nonprofit college.

Those numbers were trimmed to $140 million and $175 million, respectively, when the House recently passed its general fund budget.