OSU/A&M Board approves FY2017 budget, tuition increases for Oklahoma State system
Friday, June 17, 2016
FY2017 Budget Presentation (pdf)
The OSU/A&M Board of Regents approved the fiscal year 2017 operating budget for the Oklahoma State University system during its regularly scheduled meeting today on the OSU-OKC campus. The $1.3 billion budget includes state appropriations of $195.6 million, which represents a 16 percent or $37.1 million decrease over the prior fiscal year 2016 appropriation.
“Despite the large state budget shortfall and sizable decrease in state appropriations for higher education, our board is set on making sure a college degree remains affordable and accessible at the public universities and colleges we oversee. We continue to be concerned about affordability and access,” said OSU/A&M Board of Regents Chairman Joe D. Hall.
“While our board appreciates the all-important public funding provided by the state, the significant decline this year prompted our board and administrators at the public universities and colleges in our system to make some very tough decisions in an attempt to do everything they can to protect the core teaching mission and maintain academic quality,” Hall said.
As a result of this year’s historic reduction in state funding, the overall budget for the Oklahoma State University system includes tuition and mandatory fee increases for the more than 35,000 students at OSU’s five branch campuses: OSU-Stillwater and Tulsa, OSU Center for Health Sciences, OSU-Oklahoma City and OSU Institute of Technology.
Over the past seven years, tuition at OSU-Stillwater has increased on average 2.4 percent, while state appropriations to higher education over the same period declined 11.5 percent. Enrollment increased in the OSU system by more than 8 percent, which is roughly 3,000 students during the same period.
“We never want to increase tuition and fees, and we strive to keep any increase to a minimum,” said OSU System President Burns Hargis. “We know the slightest increase can create a financial burden for many families. This year’s budget and tuition increases reflect the hard financial realities in our state.
“Even though we have worked to bridge the gap between revenues and expenses by cutting operational costs at each institution, unfortunately it is necessary to raise tuition and fees in an all-out effort to preserve academic quality and access. The deep cuts means tuition and fee increase were simply unavoidable.”
For the academic year starting this fall, OSU-Stillwater tuition and mandatory fees will increase 7 percent for in-state and non-resident undergraduate students, as well as in-state graduate students. The increase for non-resident graduates students is 5.2 percent. The increases are based on 30 credit hours for undergraduate students and 24 credit hours for graduate students.
For the first time in at least 20 years, the OSU system-wide budget decreased year-over-year. During a time of robust growth in enrollment and programs, the FY2017 total budget is more than $1 million less than a year ago. The reduced budget holds employee salaries at current levels.
Hargis said, “I commend our faculty and staff for their dedication to doing their jobs in support of our land-grant and economic development missions despite not being compensated at the level they deserve compared to surrounding states. We appreciate and admire their commitment to excellence.”
Hargis also said OSU-Stillwater will fill fewer open faculty positions this year and will curtail some academic programs. He noted the adjustments are happening at a time when several programs, such as engineering, are growing due to greater industry demand.
According to the Oklahoma Public Higher Education: Economic and Social Impacts 2013 report, the estimated return on investment for Oklahoma public higher education is $4.72 for every $1 of state funding. The same report shows that the Oklahoma public higher education system has a $9.2 billion economic impact in the state.
“The OSU system contributes to the state’s economic development and building stronger community across the state. Expanding research initiatives is critical for building the next generation economy in Oklahoma. To that end, we want to work with the Governor and legislature to restore future funding and invest in higher education to ensure our state has the economic vitality to compete for job-creating capital in the years ahead,” Hargis said.
OSU has remained diligent in managing and reducing its costs, while continuing to offer great value. Over the last eight years, OSU’s energy management program has saved more than $35 million in utility costs and reduced consumption by 20 percent. OSU also has gained savings through changes to its purchasing card program, a self-insured health plan, and outsourcing custodial services, waste management and most of the vehicle fleet.
OSU’s budget must now receive approval from the Oklahoma State Regents for Higher Education.
View other OSU/A&M Regents actions: