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<p class=MsoNormal><font size=2 color=navy face=Calibri><span style='font-size:
11.0pt;font-family:Calibri;color:navy'>Please find the correspondence below
that was sent to your Presidents this afternoon. <o:p></o:p></span></font></p>

<p class=MsoNormal><font size=2 color=navy face=Calibri><span style='font-size:
11.0pt;font-family:Calibri;color:navy'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=2 color=navy face=Calibri><span style='font-size:
11.0pt;font-family:Calibri;color:navy'><o:p> </o:p></span></font></p>

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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> <st1:PersonName
w:st="on">Johnson, Dr. Glen</st1:PersonName> [mailto:gjohnson@osrhe.edu] <br>
<b><span style='font-weight:bold'>Sent:</span></b> Monday, February 07, 2011
3:30 PM<br>
<b><span style='font-weight:bold'>To:</span></b> Presidents<br>
<b><span style='font-weight:bold'>Subject:</span></b> Governor Fallin's State
of the State Address<o:p></o:p></span></font></p>

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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<div>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>

<p class=MsoNormal align=center style='text-align:center'><st1:place w:st="on"><st1:PlaceName
 w:st="on"><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>OKLAHOMA</span></font></st1:PlaceName>
 <st1:PlaceType w:st="on">STATE</st1:PlaceType></st1:place> REGENTS FOR HIGHER
EDUCATION<o:p></o:p></p>

<p class=MsoNormal align=center style='text-align:center'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<div style='border:solid windowtext 1.5pt;padding:1.0pt 1.0pt 1.0pt 1.0pt'>

<div style='border:solid windowtext 1.5pt;padding:1.0pt 1.0pt 1.0pt 1.0pt'>

<p class=MsoNormal align=center style='margin-right:355.5pt;text-align:center;
background:#CCCCCC'><b><font size=7 face="Times New Roman"><span
style='font-size:36.0pt;letter-spacing:-3.0pt;font-weight:bold'>Memo</span></font></b><o:p></o:p></p>

</div>

</div>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal style='line-height:150%'><b><font size=3
face="Times New Roman"><span style='font-size:12.0pt;line-height:150%;
font-weight:bold'>To:                 
<a name=to1></a>Presidents<o:p></o:p></span></font></b></p>

<p class=MsoNormal style='line-height:150%'><b><font size=3
face="Times New Roman"><span style='font-size:12.0pt;line-height:150%;
font-weight:bold'>From: </span></font></b>           
<a name=from></a>Chancellor Glen D. Johnson<o:p></o:p></p>

<p class=MsoNormal style='line-height:150%'><b><font size=3
face="Times New Roman"><span style='font-size:12.0pt;line-height:150%;
font-weight:bold'>Date:   </span></font></b>           
Monday, February 07, 2011<o:p></o:p></p>

<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in;line-height:150%'><b><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;line-height:150%;
font-weight:bold'>Subject:</span></font></b>         
<a name=re></a>Governor Fallin's 2011 State of the State Address<o:p></o:p></p>

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<div style='border:none;border-bottom:solid windowtext 1.5pt;padding:0in 0in 1.0pt 0in'>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

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<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><a name=body></a><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>I just returned from the State Capitol following
Governor Fallin’s State of the State address and would provide you with the
following brief summary of the pertinent issues in her address impacting our state
system of higher education:<o:p></o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal style='margin-left:36.75pt;text-indent:-18.75pt'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>1.)</span></font><font
size=1><span style='font-size:7.0pt'>    </span></font>The
Governor is recommending a 3% cut for the core state government functions
(higher education, common education, career tech, transportation, public
safety, and health and human services).  She will recommend a 5% cut for
all other agencies in state government. <o:p></o:p></p>

<p class=MsoNormal style='margin-left:36.75pt;text-indent:-18.75pt'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>2.)</span></font><font
size=1><span style='font-size:7.0pt'>    </span></font>The
Governor is asking our state colleges and universities to move from their
current individual purchasing card systems onto the state system.  She
indicates that this move will save $1.6 million annually and will bring more
accountability and transparency to the process.<o:p></o:p></p>

<p class=MsoNormal style='margin-left:36.75pt;text-indent:-18.75pt'><font
size=3 face="Times New Roman"><span style='font-size:12.0pt'>3.)</span></font><font
size=1><span style='font-size:7.0pt'>    </span></font>The
Governor is asking the Senate and the House leadership to pass legislative
reforms to protect the solvency of the state’s pension systems, with the
understanding that <st1:place w:st="on"><st1:State w:st="on">Oklahoma</st1:State></st1:place>’s
current pension systems unfunded liability is $16 billion.<o:p></o:p></p>

<p class=MsoNormal style='margin-left:.25in'><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>This is a quick summary of the key points in her budget address. We
will examine the FY 2011-2012 State Budget booklet in greater detail and will
advise you of any additional recommendations by the Governor impacting our
state system of higher education. <o:p></o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>I have also attached a copy of the statement I released to the media
immediately following the Governor’s budget address. <o:p></o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Please let me know if you have any questions. <o:p></o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>

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