Donations and tuition rise
June 30th, 2008TULSA - This fall students attending 25-state colleges and universities across Oklahoma will pay a lot more for tuition, nearly ten percent at OU and OSU. At those schools the average student like Mohammad Masood taking 15-credit hours will shell out an additional estimated $586 per semester. He says, “It’s still outrageous but there’s nothing we can do about it.”
While students are paying more, philanthropists like Boone Pickens, and George Kaiser are rushing to donate hundreds of millions of dollars to the institutions before a state law expires tonight that requires the state to match dollar for dollar gifts endowing faculty chairs at state colleges and universities.
Pickens has given his alma mater, OSU, about $400-million dollars.
The Kaiser Family Foundation has given at least $75-million spread among several schools. By giving the cash before July first, the State is required to match the donation. That doubles the already huge gifts.
Gary Trennepohl is President of OSU Tulsa. “This is something that’s unheard of certainly in the history of OSU and probably for any institution I can think of.” With all that cash coming in many student and parents wonder why tuition is going up. Mohammad Masood says, “It should have been less tuition.”
Trennepohl says tuition is up is because the gifts are not intended to cover immediate campus expenses like higher utility bills. “It’s not money to be spent this year. It’s dollars to be invested to generate money for the future.”
Interest earned on the endowments is intended to pay the salaries necessary to attract top professors to Oklahoma colleges and universities. And it’s why the Legislature originally required the state to match faculty chair endowment gifts dollar for dollar.
Because of tight budgets the State has failed to meet it obligation to match those faculty chair endowments. So, starting tomorrow, the rules change and a new law goes into effect.
The Legislature has suspended matching dollars until it clears its backlog of funds that have to be matched. After that time the dollar for dollar match will only take place on gifts are $250-thousand dollars or less. If it’s larger the State will only match 25-cents on the dollar and it will only match up to $5-million dollars a year.
(Cathy Tatom provided this story)




