[Oasfaa] FY2010 funding levels for state financial aid programs

[Fair, Bryce]

On Friday, May 28, the State Regents for Higher Education approved
allocations of state appropriations for state system institutions and
programs.  Following is a summary of the funding levels for our state
financial aid programs.

 

Oklahoma's Promise -  The 2007 legislation creating a dedicated funding
process for Oklahoma's Promise has already set aside full funding of $57
million for the program for 2010-11.  This is an increase of $3 million
or 5.6% from the FY2010 level of $54 million.

 

Outside of Oklahoma's Promise, the overall funding for all of our other
state financial aid programs was required to be cut by 1.8% or $655,000.
Within this context, we had two priorities-to minimize or eliminate any
cut in OTAG and to ensure as best as possible that all student award
obligations in 2010-11 in the other programs were met.

 

Oklahoma Tuition Aid Grant (OTAG) - State funding for OTAG remained
uncut at $18,927,327.   Every effort was made to avoid a reduction in
funding for OTAG.  Any cut in state funding would have been exacerbated
by the loss of all or part of the federal LEAP/SLEAP matching funds that
provide about $875,000 to the program.  The loss of the federal  funds
would have required an even earlier FAFSA filing cutoff for 2010-2011
OTAG awards than April 1st.  The April 1st date was required due to a
significant increase of OTAG-eligible applicants compared to the same
time period last year.  

 

Academic Scholars Program - The Academic Scholars Program appropriation
was cut by $555,351 or 6.5%.  The program has a modest trust fund
balance that will be used to offset this cut and should allow all award
obligations to be funded in 2010-11.  The reduction was used to help
eliminate a cut for OTAG and to fund a shortfall in the Regional
University Baccalaureate Scholarship program that has experienced an
increase in eligible participants.  Unfortunately, the Academic Scholars
trust fund will largely be depleted in 2010-11 and thus the program will
likely face a funding deficit in 2011-12 that must be addressed in the
coming year.

 

Oklahoma Tuition Equalization Grant (OTEG) - The appropriated amount for
OTEG was reduced by $250,000 or 6.5% from $3,828,751 to $3,578,751.
However, the OTEG trust fund has approximately $250,000 in available
carryover funds which will be utilized so that the actual allocation in
2010-11 will be approximately $3,828,000.  The $250,000 reduction in the
current year appropriation level was used to help prevent a cut in OTAG.

 

Regional University Baccalaureate Scholarship (state system regional
universities only) - Funding was increased from about $800,000 to
$1,035,000 to ensure that all students award obligations are met in
2010-11.  The cost of the program has increased in recent years as more
students meet the eligibility criteria.  The reduction in funding for
the Academic Scholars Program was used to address this program's
deficit.

 

The Concurrent Enrollment Tuition Waiver reimbursement and National
Guard Tuition Waiver reimbursement for state system institutions were
reduced by 1.8%.  However, some one-time carryover funds were available
for these two programs.  Since these programs are administered directly
by the State Regents Fiscal Division, questions related to the
reimbursement levels of these programs are best directed through your
institutional business officer to the Regents' Fiscal Division.

 

The remaining smaller scholarship programs that receive state funding,
including the Future Teachers Scholarship and the Nigh Scholarship, also
were cut by 1.8%.  Award levels for these programs are not expected to
be affected by the cuts.

 

If you have questions, please let me know.

 

 

Bryce Fair

Associate Vice Chancellor for Scholarships & Grants

Oklahoma State Regents for Higher Education

Phone:  405-225-9162

Fax:  405-225-9392

e-mail:  bfair at osrhe.edu <mailto:bfair at osrhe.edu> 

 

Mailing address:

P.O. Box 108850

Oklahoma City, OK  73101-8850

 

Street address:

655 Research Parkway, Suite 200

Oklahoma City, OK  73104

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