[Oasfaa] State Funding Update

[Fair, Bryce]

Despite an overall reduction in state appropriations to higher education for the coming FY2003 fiscal year, the Oklahoma Legislature and the State Regents increased funding for state student aid programs by $3.3 million or nearly 11%.  Funding increases included:

*	$2.8 million for the Oklahoma Higher Learning Access Program (OHLAP).  This increases the annual appropriation from $1.9 million to $4.7 million and ensures sufficient funding for all anticipated OHLAP awards next year.  OHLAP will continue to need annual funding increases of over $4 million each year for the next five years.  By FY2008, the annual cost of the program could be over $27 million.

*	$400,000 for the Academic Scholars Program (ASP).  Despite this increase in appropriations from $7.1 million to $7.5 million, the ASP will continue to operate with an annual funding deficit.  The cost for awards in FY2003 is projected at $9.8 million; the difference is currently covered by spending down the program's trust fund.  Without additional funding increases in future years, the trust fund is expected to be depleted by FY2007.

*	$50,000 for the Regional University Baccalaureate Scholarship which serves state system regional universities.

*	$50,000 for the Tulsa Reconciliation Scholarship Program which was created in 2001 in legislation related to the Tulsa Race Riot Commission.

[Note:  There is also a possibility of a modest increase in funding for the Oklahoma Tuition Aid Grant (OTAG) program.  Consideration of this matter was deferred by the State Regents at their May 24 meeting and may be addressed at their June 27 meeting.]

We are extremely pleased that the Oklahoma Legislature and the State Regents made funding for student aid programs a priority this session.  We believe it demonstrates the value they place on these programs and the work you do to administer them.  As always, we appreciate your continued efforts.

Bryce Fair
Associate Vice Chancellor for Scholarships & Grants
Oklahoma State Regents for Higher Education
Phone:  (405) 225-9162
Fax:  (405) 225-9230
E-mail:  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