[Cobo] FW: Oil Gross Production Impact on Higher Education Budget- Information needed by February 29, 2016

[Mauck, Sheri]

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 are again using the same format that was circulated in the reduction scenarios previously distributed.

The excel attachment included above indicates the oil gross production shortfall anticipated by each institution through the end of the fiscal year.

Please use the worksheet named "Budget Reduction Scenarios Form" to respond with the impact to your institution for the remaining fiscal year for the oil gross production reduction. You may include any narrative you wish to indicated the immediate impact to your operations.  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.

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.

Please send in as soon as possible and no later than noon of February 29, 2016, to smauck at osrhe.edu<mailto:smauck at osrhe.edu>.  Thank you.

From: Mauck, Sheri
Sent: Wednesday, February 17, 2016 8:35 AM
To: Business Officers
Subject: FW: Oil Gross Production Impact on Higher Education Budget

Please find important information sent to your Presidents regard oil gross production revenue.

From: Paliotta, Amanda
Sent: Tuesday, February 16, 2016 6:38 PM
To: Mauck, Sheri
Subject: Fwd: Oil Gross Production Impact on Higher Education Budget

Sheri - please forward to the Business Officers this email and the attached documents that the Chancellor sent to the Presidents. Thank you.

Sent from my iPhone

Begin forwarded message:
From: "Johnson, Dr. Glen" <gjohnson at osrhe.edu<mailto:gjohnson at osrhe.edu>>
Date: February 16, 2016 at 5:15:38 PM CST
To: Presidents <pres at osrhe.edu<mailto:pres at osrhe.edu>>

Subject: Oil Gross Production Impact on Higher Education Budget
OKLAHOMA STATE REGENTS FOR HIGHER EDUCATION


Memo


To:                  Presidents
Cc:                  State Regents
From:             Chancellor Glen D. Johnson
Date:               Tuesday, February 16, 2016
Subject:          Oil Gross Production Impact on Higher Education Budget


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.

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.

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).

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).

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.

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.

If you have any questions about the revised allocation figures, please contact Amanda Paliotta at apaliotta at osrhe.edu<mailto:apaliotta at osrhe.edu> or (405) 225-9126.

Thank you.

Glen

Glen D. Johnson
Chancellor
Oklahoma State Regents for Higher Education
655 Research Parkway, Suite 200
Oklahoma City, Oklahoma 73104
405.225.9122
gjohnson at osrhe.edu<mailto:gjohnson at osrhe.edu>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.onenet.net/pipermail/cobo/attachments/20160222/4f6f15ec/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: 2016-02-16 Attachment 1 - Oil Gross Production Appropriation Summary.pdf
Type: application/pdf
Size: 519139 bytes
Desc: 2016-02-16 Attachment 1 - Oil Gross Production Appropriation Summary.pdf
URL: <http://lists.onenet.net/pipermail/cobo/attachments/20160222/4f6f15ec/attachment.pdf>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: 2016-02-16 Attachment 2 - YTD FY16 Allocation Adjustments due to Shortfalls.xlsx
Type: application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
Size: 39980 bytes
Desc: 2016-02-16 Attachment 2 - YTD FY16 Allocation Adjustments due to Shortfalls.xlsx
URL: <http://lists.onenet.net/pipermail/cobo/attachments/20160222/4f6f15ec/attachment.xlsx>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: BudgetReductionScenariosForm.xlsx
Type: application/vnd.openxmlformats-officedocument.spreadsheetml.sheet
Size: 14269 bytes
Desc: BudgetReductionScenariosForm.xlsx
URL: <http://lists.onenet.net/pipermail/cobo/attachments/20160222/4f6f15ec/attachment-0001.xlsx>