Tulsa World: ORU works on balancing act

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ORU works on balancing act

By APRIL MARCISZEWSKI World Staff Writer
Published: 4/26/2008 1:39 AM
Last Modified: 4/28/2008 10:33 AM

View coverage of recent events at Oral Roberts University, including stories, videos, slide shows and copies of documents. www.tulsaworld.com/orulawsuit

The interim president is planning for a balanced budget within the next three years.

Oral Roberts University, which until a $70 million gift last fall was facing a debt crisis, is working to ward having a balanced budget within two or three years, Interim President Ralph Fagin said Friday.

For that to happen, leaders are looking for ways to increase revenue, such as enticing more people to donate, receiving larger donations from current donors, enrolling more students and increasing the profits of auxiliary services, such as Mabee Center events, athletic tickets, the campus bookstore and food services.

Ultimately, "we want to build an endowment and be strong going forward," Fagin said.

If revenue does not increase, the university would have to consider budget cuts. That could include layoffs in two or three years, he said.

"We're not looking at any imminent layoffs at Oral Roberts University," he said.

For now, any positions that come open will not automatically be filled; instead, leaders will determine whether the jobs are needed.

Recently, ORU created a new job that leaders thought

was necessary: a marketing director.

"By spending a few dollars, you can make a few dollars more," Fagin said.

Fagin said the university wants to bring its employees' pay up to the market rate. To help meet that goal, the budget that takes effect May 1 will give employees 6 percent raises.

Evan Culp, chairman of tenured faculty at ORU, said Fagin told faculty this week that the college has an opportunity with the $70 million donation from the Green family, and it needs enrollment in its programs to grow.

"We have a year or two to do that," Culp recalled from the meeting. "If, in fact, in two years we haven't done that, we're going to have to look at other options. To me, that's just being responsible."

Enrollment for the fall is only nine students fewer than ORU had a year ago, but many students traditionally wait until later -- some as late as August -- to enroll, Fagin said. ORU is planning to use $3 million of the Green family's donation as financial aid for new and returning students, and Fagin expects that to help recruitment and retention.

ORU officials said in January that enrollment had dropped 84 students since the fall semester, a typical decrease. Enrollment has dropped more significantly in the past five years, board Chairman Mart Green has said. He and Fagin admitted last week that the highly publicized controversy of last fall -- which culminated in President Richard Roberts resigning -- hurt student recruitment.

Fagin said if enrollment in particular programs is low in the future, the university would consider consolidating or eliminating majors and departments. The university is being "more intentional" about using its existing program-review process.

"You want to put the resources where there's the most interest, where there's the most return on value," Fagin said. ". . . We probably would like to get some more online programming.

"We're pretty satisfied with the array of offerings," which includes more than 60 undergraduate, 14 master's and two doctoral programs, he said. ". . . We may alter the assortment of offerings as we learn more."

As leaders across campus submit their budgets for the coming year, top administrators are looking for each division to keep costs under control, he said.

"We are serious about cost containment and evaluating our positions, but that's just good, normal business," he said.

At the same time, the university is being careful not to hurt the quality of education. "We want to have 'mission with economic sustainability,' " he said, quoting Green.

April Marciszewski 581-8475
april.marciszewski@tulsaworld.com

By APRIL MARCISZEWSKI World Staff Writer

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