Regents prepare for budget cuts

Oklahoma’s higher education system is bracing for a 6 percent cut in state funding under the general appropriations bill lawmakers are voting on this week.

A summary sheet shows the cut to higher education will be 4.5 percent — from $810 million to $773 million — but the bill requires the system to make additional cuts internally to pay bond debt service, Amanda Paliotta, vice chancellor for budget and finance said Thursday.

“Our debt service obligations for the upcoming year total about $62.6 million,” Paliotta said in a report to the Oklahoma State Regents for Higher Education.

“We had been told the GA (general appropriations) bill in this amount had shielded the $62 million from cuts and that we would not have to absorb any additional cuts internally to make the payments. That is not the case.”

That means each of the 25 public colleges and universities and all the agency’s operations and programs will be cut 6.1 percent, she said.

Chancellor Glen Johnson said higher education leaders had 25 meetings about the debt service issue with lawmakers throughout the session and were confident it would be covered.

“The bottom line is we’re clear on our numbers — that the way it’s structured now — we won’t have money in there to cover the debt service,” Johnson said.

The bill passed the Senate 33 to 13 Wednesday and will be voted on Friday in the House, he said. After the appropriations bill passes, the regents will approve fiscal year 2018 allocations for each of the colleges and universities.

Higher education’s future

Following their regular meeting, the regents took part in the first meeting of a task force they formed to improve and modernize Oklahoma’s higher education system.

“We need to put what we have in context with what we need to do,” said Regent Ronald White, of Oklahoma City, who is chairman of the task force.

“Everything is on the table here. Please think outside the box,” White told the 60 academic and business leaders from across the state who will work in four committees.

Over the next six months, the committees will examine and make recommendations about:

• College degree completion and workforce development.

• Academic program innovations and online education. • System structure. • Fiscal solutions, efficiencies, affordability and technology.

Johnson said he expects their work “will move our system of higher education forward in a very significant way.”

For more information about the task force members and committees, go to goo.gl/ETaQbm