OU Announces Budget Cuts, Salary Reductions
The belt-tightening has begun in Norman.
The University of Oklahoma on Wednesday announced budget cuts of $13.7 million, including a 10 percent salary reduction for employees earning $1 million or more.
Total operating expenses for fiscal year 2019 were nearly $158 million, with about $163 million in total operating revenue, according to The Oklahoman.
According to data compiled by USA Today for fiscal year 2017-18, OU most recently had $175.3 million in athletic department revenue and $152.7 million in total expenses.
Today’s cost-cutting measures are part of ongoing measures taken to deal with the Coronavirus pandemic.
Among OU employees making more than $1 million annually, according to Oklahoma Watch: head football coach Lincoln Riley ($5.3 million), men’s basketball head coach Lon Kruger ($3.2 million), athletic director Joe Castiglione ($1.6 million), football defensive coordinator Alex Grinch ($1.4 million), women’s basketball head coach Sherri Coale ($1.3 million) and softball head coach Patty Gasso ($1.2 million).
All have base salaries paid by the university that are well below $1 million; the rest of their compensation is from private funds raised from outside university coffers.
According to an OU press release Wednesday night, part of the new budget includes COVID-19 expenses, testing protocols and additional safety measures.
The press release states the OU athletic department will hold intact and safeguard all financial aid and services provided to student-athletes, including accommodations for extended eligibility.
Castiglione said these reductions represent the department’s first steps in responding to the impact of COVID-19 and said there could be more measures taken later.
“All of us understand that a number of circumstances will unfold in the weeks ahead,” he said. “Our staff continues to monitor our expense and income projections closely and we'll take other actions, as necessary.”
Castiglione said OU was still able to balance the budget for the 2019-20 fiscal year.
“It’s a testament to our staff and our practices that we were able to balance our budget for fiscal year 2020,” Castiglione said. “We have always benefited from excellent teamwork in our department, but our staff has come together as never before. I am very proud of our people.”
Castiglione said he’s still optimistic about the upcoming school year.
“Our goal is to have all activities operate as safely and efficiently as possible,” he said. “That said, we are planning on a number of contingencies and protocols that will leave us prepared for any number of scenarios.”
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