Oklahoma Higher Education Chancellor Glen D. Johnson Achieving The Dream Legislative Tour December 19, 2018 Chancellor Glen D. Johnson

Oklahoma by 2020 will require bachelor’s degree or higher. 67% of all jobs created in Oklahoma by 2020 will require some college, a long-term certificate or a college degree. 37% of all jobs created in Oklahoma by 2020 will require an associate’s degree, bachelor’s degree or higher. Source: United States Bureau of Labor Statistics and the Georgetown Center for Education and Workforce Development

one-quarter (32 percent) bachelor’s degree or more. Nationally, more than one-quarter (32 percent) of adults 25 and older have a bachelor’s degree or more. Colorado 38.1% Kansas 31% Missouri 27.1% compared to Oklahoma at 25.5 percent. New Mexico 26.3% Arkansas 21.1% Texas 27.6% Source: Bureau of the Census 2017

State Appropriations FY2001-FY2019 $1,200,000,000 $1,050,970,669 $988,549,007 $1,000,000,000 $963,412,106 $814,772,157 $810,022,109 $776,707,167 $800,000,000 $773,597,660 $600,000,000 $400,000,000 $200,000,000 $0 FY2001 FY2008 FY2015 FY2016 FY2017 FY2018 FY2019 * Since the Recession in FY08, higher education has been cut $274.3 million. (26%) 4 Source: Oklahoma State Regents for Higher Education.

Higher Education’s Percent of Oklahoma Total State Appropriations 20% 11.3% 15.9% 18.6% 14.6% 14.5% 14.4% 15.8% 14.8% 12.9% 15.6% 12.4% 15% 10% 5% FY80 FY90 FY00 FY10 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Source: Oklahoma State Regents for Higher Education. 5

State Appropriations as a percent of Total Higher Education Budget 100% 80% 74.2% 60% 50.8% 39.9% 39.5% 40% 38.7% 37.2% 35.1% 30.0% 27.9% 27.2% 20% 0% 1988 2007 2012 2013 2014 2015 2016 2017 2018 2019 Source: Oklahoma State Regents for Higher Education. 6

80.0% 70.0% Percentage Change in State Fiscal Support for Higher Education, FY’12 to FY’17 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% *Illinois is the only State not listed in this report. -20.0% Florida Oklahoma Louisiana West Virginia Alaska Kentucky Arkansas Kansas Arizona Vermont Pennsylvania New Jersey Alabama Mississippi New Mexico Delaware North Carolina Maine Wyoming Indiana Ohio Iowa Nebraska Missouri Rhode Island Texas New York Minnesota Nevada Michigan Connecticut Georgia North Dakota Maryland Tennessee Montana Virginia South Carolina Hawaii Massachusetts South Dakota Wisconsin Utah Colorado Washington Idaho Oregon California New Hampshire 7 Source: Grapevine, An Annual Compilation of Data on State Fiscal Support for Higher Education

Average of 4.9% C O L L E G E A F F O R D A B I L I T Y Source: Oklahoma State Regents for Higher Education Tuition and Mandatory Fee Increases from 2009 – 2018 8.4% 5.8% 5.8% 5.2% 5.3% 5% 4.8%% 4.7% 4% 0% 2009-10 2010-11 2011-12 2012-13 2013-14* 2014-15* 2015-16 2016-17 2017-18* 2018-19* Institutions with no tuition increases: *2013-14 - OU and OSU. *2014-15 - OSU and WOSC. *2017-18 OPSU and USAO. *2018-19 OU, SEOSU, EOSC, and MSC. Average of 4.9%

Source: US News and World Report – March 2018 Oklahoma is 7th lowest for tuition and fees Oklahoma is 10th lowest for student debt at graduation Source: US News and World Report – March 2018 9

focus on modernization, efficiencies, structure The Task Force Report on the Future of Higher Education emphasized the state system of higher education’s focus on modernization, efficiencies, structure and innovations. 10

FY 2020 Budget Need Faculty Salary Increases – $38.7 million This request would provide salary increases for full-time faculty and represents approximately 6,762 full-time-equivalent positions. The targeted increase is 7.5 percent for FY2020. This request will help to ensure competitive salaries to retain our college and university faculty, and help to maintain top-quality instruction. 11

FY 2020 Budget Need II. Restoration of Base Operational Funding (Year 1) – $50.5 million a. Increase in Number of Faculty/Instructor Positions and restoration of course sections - $20.4 million. Fixed Cost Increases - $24.3 million. c. Deferred Maintenance for Campus Infrastructure (Section 13 Offset) - $5.8 million. 12

FY 2020 Budget Need III. Financial Aid and Scholarship Programs – $12.3 million Concurrent Enrollment Program – $3.3 million. Restoration of Scholarship Programs - $9.0 million 13

Concurrent Enrollment Credit Hours Concurrent Enrollment 114,010 102,711 101,328 100,000 Source: Oklahoma State Regents for Higher Education 90,018 90,000 82,651 Concurrent Enrollment Credit Hours 77,482 80,000 71,539 70,000 58,676 58,929 60,000 53,455 50,187 52,279 50,000 39,744 40,000 Concurrent Enrollment Student Headcount 2017-2018 13,120 30,000 20,000 10,000 14 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

$3.3 million Request Difference 14,000,000 CONCURRENT ENROLLMENT $13,500,00 Source: Oklahoma State Regents for Higher Education $3.3 million Request Difference 12,000,000 $11,760,637 Current Appropriations Total Funding Requirement $10,583,014 $10,216,349 $10,216,349 10,000,000 $8,272,114 8,000,000 $7,107,446 $6,198,927 6,000,000 $5,409,345 $5,198,248 $4,502,281 4,000,000 $2,820,800 2,000,000 15 FY’15 FY’16 FY’17 FY’18 FY’19 FY’20

Restoration of Scholarships Academic Scholars - to restore scholarship funding reductions - $2 million National Guard Waiver Program - to restore tuition waivers for guard members due to budget reductions - $955,000 Oklahoma Tuition Aid Grant (OTAG) - to restore 4,000 awards - $4 million Oklahoma Tuition Equalization Grant (OTEG) - to restore 380 awards - $765,000 Regional University Baccalaureate Scholarships - to restore freshman scholarship that were cut by 80 percent in FY17 due to state appropriations reductions - $235,000 6) Teacher Shortage Employment Incentive Program - Restoring state appropriations to cover award amounts as designated in statute - $1 million 16

FY 2020 Budget Need FY'19 Appropriation $776,707,166 FY'20 Budget Need 1. Faculty Salary Increases (7.5% increase) $38,700,000 2. Restoration of Base Operational Funding (Year 1)* $50,500,000 a. Increase in Number of Faculty/Instructor Positions and restoration of course offerings - $20.4 million b. Fixed Cost Increases - $24.3 million c. Deferred Maintenance for Campus Infrastructure (Section 13 Offset) - $5.8 million 3. Financial Aid and Scholarship Programs $12,300,000 a. Concurrent Enrollment Program - $3.3 million b. Restoration of Scholarship Programs - $9.0 million FY'20 Total Budget Need $878,207,166 $ Difference from FY'19 State Appropriations $101,500,000 % Difference from FY'19 State Appropriations 13.1% *Six Year Higher Education Base Operational Funding Plan FY'20 $50,500,000 FY'21 $44,800,000 FY'22 $44,800,000 FY'23 $44,800,000 FY'24 $44,800,000 FY'25 $44,800,000 Six Year Total $274,500,000 17

2019 Legislative Agenda Concurrent Enrollment Faculty Salaries Oklahoma’s Promise Maintain Current Law Regarding Weapons on Campus Implement the Task Force on the Future of Higher Education’s Recommendations Complete College America 18

Oklahoma Higher Education Chancellor Glen D. Johnson Achieving The Dream December 19, 2018 Chancellor Glen D. Johnson