Universities preparing for revenue shortfalls
The “enormous challenge” of budget crafting during COVID-19 is now complete for the University of Oklahoma, Cameron University and Rogers State University.
The OU Board of Regents approved Fiscal Year 2021 budgets for the three universities during a virtual meeting Thursday.
All three schools project deficits requiring costcutting measures and possible use of reserve funds. None will see tuition and fee increases in the next fiscal year except the OU Health Sciences Center.
“This was an enormous challenge,” Regent Natalie Shirley said of the budgeting process. “It was certainly a challenge for Rogers State and Cameron, but the budget for OU was certainly made even more complex with the issue of the dorms, with the issue of athletics, et cetera.”
The Norman campus projects a $17.64 million deficit and a total budget of $982 million.
This includes $ 8.56 million less in expected housing and food revenue than what the university budgeted for last year. Athletics revenue is budgeted to drop by $45 million.
State funding will decrease by $4.7 million.
This is the third year in a row with no tuition and fee increases for the Norman campus, President Joseph Harroz said.
The university is planning cuts to discretionary spending and travel and is exploring a consolidation of IT services. OU could tap into reserve funds if other cost-saving measures don't close the shortfall.
Increases in federal funding will provide relief, including $8.9 million budgeted from the Coronavirus Aid, Relief and Economic Security Act.
However, sanitizing and disinfectant costs will rise as OU plans a return to inperson classes this fall.
The OU Health Sciences Center will operate with a budget of $2.04 billion and a revenue deficit of more than $4.4 million.
The Health Sciences
Center will raise tuition by 3% for all resident and non-resident students in the medicine, physician assistant and physician associate programs. The dentistry program will have a 4% tuition increase for resident and non-resident students.
The College of Medicine, College of Dentistry, and the physician associate and assistant programs will see fee increases, as well, with costs varying by college and resident status.
The OU College of Law will have a $25.9 million budget. Funds for the OU Schusterman Center in Tulsa are wrapped into the Norman campus and Health Sciences Center budgets.
Cameron University in Lawton projects more than $43 million in revenue but over $45 million in spending. The university expects up to a 15% enrollment decline, President John McArthur said.
Cameron has committed $1.7 million in reserve funds to cover expenses. This amount could be offset with spending restraint and leaving faculty and staff positions unfilled.
Rogers State, based in Claremore, projected $32 million in revenue and $33.4 million in expenditures. However, total expected spending fell by $1.36 million, largely from employee reductions and furloughs.
The university budgeted for an enrollment decrease of 9%. If Rogers State reduces the enrollment decline to 4% or less, administrators would “strongly consider” eliminating furloughs, according to a budget overview. Rogers State plans to use up to $ 2.9 million from reserves.