Business Model

The distance education budget model, approved by the Office of Academic Affairs and Senate Fiscal in May 2013, applies to students enrolled in only distance (75+% online) courses as part of an approved distance education program with a Program subplan label of ONL. Distance Programs, Courses, Students all have an ONL subplan in the Registrar system. All funding flows through the ONL tag.

Review the class label job aid on the university registrar's website.

The tuition model is defined below:

Tuition In-State

  • In-State Tuition
  • $100 distance fee

Out-of-State

  • In-State Tuition
  • $100 distance fee
  • $5 out-of-state fee

The distance education budget model is consistent with the current Ohio State budget structure, with all revenues going through the budget office. Revenue is calculated on a two-year average with distribution lagging a year. Where marginal revenues are subject to the existing 24% support unit tax and net marginal revenue is split 70/30 between the college and ODEE (split evaluated annually). In this budget model, colleges receive a larger share of the tuition dollar then a face-to-face tuition dollar. The division can be outlined in this diagram.

Bar graph comparing percentage of each tuition dollar that goes to colleges for online students compared to graduate and undergraduate students
Ohio State University incentivizes its colleges to offer online degrees through the above budget model, which ensures the college earns more SSA 4 is only charged for online students and goes to the Office of Distance Education and eLearning to cover instructional design, marketing, and other administrative services associated with operating online. SSAs 1, 2, and 3 cover on-campus services and are only charged for students taking classes on-ground at Ohio State.

The ODEE share of each tuition dollar covers:

The ODEE share is an assessment (SSA-4), and no other student services assessments apply to colleges under this model.

A Distance Education Budget Model worksheet is available to estimate an online program budget.

DE Budget Model template