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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">In order to prepare as much information as possible to be discussed with our State Regents next week, we need each of our institutions to complete the attached
worksheet in relation to the impact of the oil gross production shortfall to your institutions. We
</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">are again</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"> using the same format that was circulated in the reduction scenarios previously
distributed.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">The excel attachment included above indicates the oil gross production shortfall anticipated by each institution through the end of the fiscal year.</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Please use the worksheet named “<u>Budget Reduction Scenarios Form”</u> to respond with the impact to your institution for the remaining fiscal year</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">
for the oil gross production reduction</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">. You may include any narrative you wish to indicated the immediate impact to your operations.</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">
</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">If your institution is planning to use reserves to cover the oil gross production shortfall, then a simple email indicating that response will be sufficient.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">You aren’t being asked to file a budget revision with OMES just yet. We will combine this shortfall and the anticipated second General Revenue shortfall into
one filing with OMES, after figures are available from OMES next week.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Please send in as soon as possible and no later than noon of February 29, 2016</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">,
to <a href="mailto:smauck@osrhe.edu">smauck@osrhe.edu</a>. Thank you.</span><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Mauck, Sheri
<br>
<b>Sent:</b> Wednesday, February 17, 2016 8:35 AM<br>
<b>To:</b> Business Officers<br>
<b>Subject:</b> FW: Oil Gross Production Impact on Higher Education Budget<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">Please find important information sent to your Presidents regard oil gross production revenue.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Paliotta, Amanda
<br>
<b>Sent:</b> Tuesday, February 16, 2016 6:38 PM<br>
<b>To:</b> Mauck, Sheri<br>
<b>Subject:</b> Fwd: Oil Gross Production Impact on Higher Education Budget<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Sheri - please forward to the Business Officers this email and the attached documents that the Chancellor sent to the Presidents. Thank you. <br>
<br>
Sent from my iPhone<o:p></o:p></p>
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Begin forwarded message:<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b>From:</b> "Johnson, Dr. Glen" <<a href="mailto:gjohnson@osrhe.edu">gjohnson@osrhe.edu</a>><br>
<b>Date:</b> February 16, 2016 at 5:15:38 PM CST<br>
<b>To:</b> Presidents <<a href="mailto:pres@osrhe.edu">pres@osrhe.edu</a>><br>
<br>
<b>Subject:</b> <b>Oil Gross Production Impact on Higher Education Budget</b><o:p></o:p></p>
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<p class="MsoNormal" align="center" style="text-align:center">OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION<o:p></o:p></p>
<p class="MsoNormal" align="center" style="text-align:center"> <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<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><span style="font-size:36.0pt;letter-spacing:-3.0pt">Memo</span></b><o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="line-height:150%"><b>To: <a name="to1">
</a>Presidents</b><o:p></o:p></p>
<p class="MsoNormal" style="line-height:150%"><b>Cc: State Regents</b><o:p></o:p></p>
<p class="MsoNormal" style="line-height:150%"><b>From: </b> <a name="from">
</a>Chancellor Glen D. Johnson<o:p></o:p></p>
<p class="MsoNormal" style="line-height:150%"><b>Date: </b> <a name="datea">
</a>Tuesday, February 16, 2016<o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;text-indent:-.5in;line-height:150%">
<b>Subject:</b> <a name="re"></a>Oil Gross Production Impact on Higher Education Budget<o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
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<p class="MsoNormal"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"><a name="body"></a>The annual appropriation provided from the Legislature to the Oklahoma State Regents for Higher Education for the support of the entire Oklahoma state system of higher education is comprised
of multiple revenue sources. Of these revenue sources, the Higher Education Capital Revolving Fund and the Oklahoma Tuition Scholarship Revolving Fund receive revenue solely from oil gross production proceeds.
<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">For FY16, the Oklahoma State Regents were appropriated $47,372,299 from both the Higher Education Capital Revolving Fund and the Oklahoma Tuition Scholarship Revolving Fund, for a combined total of $94,744,598.<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">The current economic conditions affecting the energy industry in Oklahoma is directly impacting the amount and rate of oil gross production revenue collected and allocated from the Higher Education Capital Revolving
Fund and the Oklahoma Tuition Scholarship Revolving Fund. Due to the decline in monthly revenue available for allocation from the Higher Education Capital Revolving Fund and the Oklahoma Tuition Scholarship Revolving Fund, the Oklahoma Tax Commission is
now estimating that there will be a total shortfall of $26.3 million from the original combined appropriation of $94.7 million (Attachment 1).
<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">The $26.3 million shortfall from these revolving funds only affects higher education and is in addition to the 3 percent annualized general revenue reductions imposed by the Office of Management and Enterprise
Services (OMES) effective January 1, 2016 and any subsequent reductions imposed by OMES for the remaining months of this current fiscal year (FY16).
<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">The Oklahoma Tax Commission will continue to monitor revenue collections made into these two revolving funds. Any additional changes made by the Oklahoma Tax Commission in the shortfall estimate to these two
revolving funds will be conveyed to you as soon as possible. <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">Attachment 2 provides the adjusted allocation figures for the higher education institutions, per the estimates provided by the Oklahoma Tax Commission. Although these figures are distressing, I wanted to alert
you to this situation as quickly as possible so that you can begin to make the necessary budgetary adjustments.<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">If you have any questions about the revised allocation figures, please contact Amanda Paliotta at
<a href="mailto:apaliotta@osrhe.edu">apaliotta@osrhe.edu</a> or (405) 225-9126.<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">Thank you.<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none">Glen<o:p></o:p></p>
<p class="MsoNormal" style="text-autospace:none"> <o:p></o:p></p>
<p class="MsoNormal"><b><span style="color:black">Glen D. Johnson</span></b><o:p></o:p></p>
<p class="MsoNormal"><span style="color:black">Chancellor</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:black">Oklahoma State Regents for Higher Education</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:black">655 Research Parkway, Suite 200</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:black">Oklahoma City, Oklahoma 73104</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:black">405.225.9122 </span><o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:gjohnson@osrhe.edu">gjohnson@osrhe.edu</a><span style="color:black">
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:black"> </span><o:p></o:p></p>
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