OKLAHOMA CITY (AP) — The University of Oklahoma is losing $36 million a year as expenses continue to outpace revenue, according to the school's incoming president.
Jim Gallogly met with the university's Board of Regents in Oklahoma City on Tuesday, The Oklahoman reported . He'll become the university's 14th president July 1.
Total debt is nearly $1 billion at the Norman campus, and debt service costs are almost $70 million a year, according to Gallogly.
"Our debt has more than doubled in the last 10 years as we've been on a building campaign," he said. "As a result of that, we have a beautiful campus and a lot to be proud of, but during that period of time, we spent approximately $730 million."
The regents approve the university's annual budget and tuition rates for the coming academic year every May. Regents approved a $2.12 billion budget for fiscal 2019 with the understanding Gallogly will rework it come July.
The incoming president said the focus will be on efficiencies and "putting money into the right places," including faculty raises. He said the university will not increase tuition in the new budget.
"Our inefficiencies on the Norman campus and our overspending on the Norman campus should not fall on the shoulders of our students," Gallogly said. "So we will not do that."
Net tuition and fees have increased by nearly 35 percent over the past five years. Operating cash is about $175 million, down 26 percent during the same time period, Gallogly said.
Regents selected the incoming president in March. Gallogly served as CEO of Houston-based LyondellBasell, turning around a company that was $24 billion in debt.
"We will get our house in order," he said. "This will be hard but important work."