One day after Ohio lawmakers spared Ohio University from at least $18.3 million in state funding cuts next year, the Budget Planning Council submitted revenue projections for next fiscal year to President Roderick McDavis.
Budget assumptions for revenue from and costs of state funding, tuition, faculty compensation and enrollment, were given to McDavis on Friday. Once he has approved the budget assumptions, the BPC will begin crafting the 2011 university budget.
The council recommended OU assume it will maintain current enrollment levels, meaning the university cannot count on an increase in students to make up for the $11 million less it will receive from the state next year.
Administrators said it would take at least an additional 750 students to make up for the decrease in state support - a scenario deemed extremely unlikely.
Maintaining current enrollment numbers could mean a tuition increase or departmental budget cuts, or both.
To fill the budget hole using only a tuition increase, OU would have to up tuition by at least 8 percent. However, the state has capped all tuition increases at 3.5 percent, which would bring in-state undergraduate tuition to $3,185 a quarter.
OU's Board of Trustees voted in July to raise tuition to current levels, $3,077 a quarter for in-state undergraduate students, after Gov. Ted Strickland lifted a three-year tuition freeze.
Budget planning units in both academic and non-academic departments have been asked by the provost's office to prepare budget scenarios for a 10 percent cut.
University budget planners had expected the $11 million decrease, but until state Senate leaders compromised to repair the governor's tattered budget, OU funding drop more than doubled to $29 million less than expected.
Obviously we've been watching it very carefully
said Pam Benoit, OU's executive vice president and provost. I'm just so thankful (for the compromise).
OU extracted $10 million from this year's budget after considering $10 million, $15 million and $20 million scenarios based on less than expected state funding and losses in investment revenue.
Anytime you plan a budget you have to go in with some assumptions said Becky Watts, McDavis' chief of staff, who added that the recommended assumptions could change pending state funding cuts for either this year's or next year's budget.
McDavis is expected to return an approved list of assumptions to the BPC sometime during Winter Quarter.
My decision process will take into account the implications of the state of Ohio budget situation the anticipated timeline for the end of federal stimulus funds coming to the state in two years and the importance of strategically funding priorities that will move Ohio University to higher national prominence
McDavis said in a statement Friday. I will share my decisions on the planning assumptions that will guide our budget development process with the entire university community at the same time I provide those decisions to BPC.
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Wesley Lowery
