OU raises tuition and fees 3% for out-of-state students only

Jun. 22—Tuition and fees at the University of Oklahoma will only increase for out-of-state students — not Oklahoma residents — after OU's Board of Regents amended the university's plans Tuesday.

OU initially planned to raise costs for out-of-state and in-state students at its Norman campus. But President Joe Harroz said after board discussion Tuesday, the university will not increase tuition and fees for resident students due to the inflation hitting across the country.

The costs will go up 3% for non-resident Norman and College of Law students this coming school year. The increase raises non-resident flat rate tuition from $12,557.70 to $12,939.30.

Health Sciences Center students will also see a 0% tuition and fee increase.

"The clear belief by the board was that right now isn't the time to do 3% on in-state students — we went with it for out-of-state students, and it makes eminent sense," Harroz said.

Harroz said the university is prioritizing keeping OU affordable and accessible to Oklahomans especially. Even if the board had passed a 3% tuition and fee increase for in-state students, resident costs to attend OU would still be less than they were five years ago due to increased need-based aid opportunities, he said.

"The goal and the dream is that we have excellence and that any student, certainly any Oklahoma resident, that has the talent and the ability and the drive, but not the financial means, has the ability to attend OU as a flagship research university," Harroz said.

The amendment will have a slight financial impact on OU's budget. The initially-planned 3% increase for all Norman campus students would have given a $7 million boost to the budget.

With increased tuition and fees coming in only from out-of-state students, that number will likely go down to about $4 million, Harroz said.

"The out-of-state pays more than the in-state, so we've got some money to make up," Harroz said. "It's real money — it's not insurmountable; we're just going to have to work harder and get there."

Regent Anita Holloway, the chair of the board's financial committee, said Tuesday the tuition increase is "modest in relation to current inflation rates and economic pressures," and that the price hike is well-backed by university needs.

This is the second year in a row that OU has raised tuition and fees. Last June, the board approved a 2.75% tuition and fee increase, with all members but Rick Nagel voting for the price increase.

Before 2021, the board had kept tuition flat since Fiscal Year 2018.

In 2021, plans for the cost increase didn't change after board discussion, Nagel's dissent and opposition from student leaders. This year, Harroz said the university's budget is in a good place, with strong State Legislature allocations and fundraising numbers. OU will receive $121.5 million in state appropriations in Fiscal Year 2023, the budget shows.

"This is an opportunity during tough economic times to make sure that we're there for those families and those students that are borrowing money," Harroz said.

The Fiscal Year 2023 budget will support a 3% raise for university faculty and staff, which should go into effect July 1. Harroz said the raise is hopefully "the first of regular raises."

The board also gave Harroz a one-time $150,000 bonus for "exemplary performance to the university since May 2019" and extended his employment contract by seven more years.

By the terms of that contract, Harroz will be eligible for a $100,000 bonus every year if he meets "mutually established performance goals." Harroz makes $500,000 annually, he said Tuesday.

Regent Eric Stevenson said the university is hoping to put all employees on a more performance-based incentive program, and it seemed appropriate to regents to start with the president.

Emma Keith is the editor of The Transcript, where she covers Norman Public Schools and the University of Oklahoma. Reach her at ekeith@normantranscript.com or at @emma_ckeith.