(A)The strategic square footage reduction fund is created in the state treasury. The fund shall consist of money credited or transferred to it and grants, gifts, and contributions made directly to it. In addition to any such money, gift, or contribution, funds may be transferred from the Ohio tuition trust reserve fund to the strategic square footage reduction fund, in accordance with section3334.11of the Revised Code.
(B)The strategic square footage reduction fund shall be used to make revolving loans to state institutions of higher education, as defined in section3345.011of the Revised Code, that enable the voluntary reduction of physical square footage.
(C)The chancellor of higher education shall administer and award, in consultation with the Ohio facilities construction commission
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(A) The strategic square footage reduction fund is created in the state treasury. The fund shall consist of money credited or transferred to it and grants, gifts, and contributions made directly to it. In addition to any such money, gift, or contribution, funds may be transferred from the Ohio tuition trust reserve fund to the strategic square footage reduction fund, in accordance with section3334.11of the Revised Code.
(B) The strategic square footage reduction fund shall be used to make revolving loans to state institutions of higher education, as defined in section3345.011of the Revised Code, that enable the voluntary reduction of physical square footage.
(C) The chancellor of higher education shall administer and award, in consultation with the Ohio facilities construction commission, the revolving loans described in division (B) of this section. The chancellor, in consultation with the commission, shall establish all of the following:
(1) Procedures and forms by which state institutions of higher education may apply for a loan;
(2) A competitive process for ranking applicants and awarding the loans, with priority consideration given to state institutions of higher education that have experienced a decrease in their general student populations, as determined by the chancellor;
(3) Procedures and timelines for distributing loans and collecting payments for the strategic square footage reduction fund.
(D) Each state institution of higher education shall include in its application all of the following:
(1) The extent to which the square footage may have value if sold or reallocated to serve other purposes, which may include kindergarten through twelve, career-technical, or adult educational purposes, community interests, or business and industry partnerships;
(2) The relative age and condition of the facilities to be deconstructed;
(3) Historical enrollment patterns as well as future enrollment projections;
(4) The composition of classes offered in person versus in an online format;
(5) The level of deferred maintenance;
(6) The prior level of state investment;
(7) The amount of annual operating expenses defrayed by eliminating the square footage;
(8) A report from the office of budget and management detailing the extent and the status of past capital budget appropriations supporting the project and the existence of any outstanding bonded debt derived from such support.
The chancellor and the Ohio facilities construction commission shall consider the information supplied under this division in making final awards.
(E) Each state institution of higher education that receives a loan under this section annually shall certify to the chancellor, on a date and in such form and manner as prescribed by the chancellor, a summary of financial information regarding the loan.
(F) Prior to a state institution using the loan to pay the demolition costs of a facility, the following shall occur:
(1) The board of trustees of that institution shall adopt a resolution approving the demolition.
(2) Notwithstanding anything to the contrary in the Revised Code, any net proceeds received from any demolition of real property made pursuant to this section shall, at the direction of the director of budget and management, be credited to the strategic square footage reduction fund.
(G) Each state institution of higher education receiving loans under this section shall not construct any new facility during the time period in which demolition is occurring.
Last updated August 7, 2025 at 9:10 AM