At today’s meeting, the Oklahoma State Regents for Higher Education approved revisions to the performance funding formula for state system colleges and universities. The updated methodology reflects public higher education’s Blueprint 2030 strategic plan, aligns with state priorities and initiatives, and incentivizes improved student access and success.
The State Regents’ Performance Funding Formula Committee developed the model in consultation with HCM Strategists, a national higher education policy and finance consulting firm, after reviewing national best practices in higher education finance and performance funding structures and considering institutional mission differentiation, employer demand, and outcome-based funding metrics.
“This update to the state system performance funding formula will more strategically connect allocation of state appropriations with Oklahoma’s higher education priorities, workforce needs, and student success goals,” said State Regents’ chair Courtney Warmington. “Beginning in FY27, a percentage of institutional base funding will be allocated through the new model, increasing in annual increments to reach 25% of institutional base funding.”
Components of the new model include enrollment (25%), recognizing institutional access for traditional and adult learners with varying economic and academic backgrounds; retention and success (30%), emphasizing student progression and completion outcomes; opportunity (20%), focusing on completion outcomes for priority student populations, such as adult, Pell-eligible, and academically underprepared students; and workforce (25%), aligning funding with key measures such as degree completion in STEM and other critical occupations, employment of graduates, and wages. A peer-sector allocation methodology is designed to recognize the differing missions, structures, and operating environments of research universities, regional universities, and two-year institutions.
The State Regents also allocated FY27 state appropriations for the state system of higher education and expressed their gratitude for ongoing support of the Oklahoma’s Promise and Oklahoma Rising Scholars programs.
The State Regents received $15.7 million in new state appropriations, representing a 1.4% increased investment by legislators and the Governor over FY26, including an additional $10 million for Oklahoma’s Promise and $4.7 million for the Oklahoma Rising Scholars Award program.
“We thank our legislators and Gov. Stitt for investing in Oklahoma’s future,” said Chancellor Sean Burrage. “Public higher education’s FY27 budget advances the priorities outlined in our Blueprint 2030 strategic plan – to grow the student pipeline and produce workforce-ready graduates to meet changing marketplace needs.”
Institutional operating allocations for FY27 include continuing targeted investments in campus-based workforce development initiatives in high-demand fields such as engineering, computer science, data analytics, and nursing. In FY26, the State Regents allocated $11.5 million to Oklahoma’s public colleges and universities from funds designated to incentivize increased production of STEM and healthcare graduates. This funding was awarded with the understanding that at the end of a three-year period, funds could be reallocated based on credit hour production and degrees conferred in those critical occupations. Those funds have been allocated for year two of three among the institutions for FY27 and remain “at-risk” based on degree production over the next two academic years.
The State Regents also allocated funding in FY27 for financial aid and scholarship programs to support college degree completion, including concurrent enrollment and the Oklahoma Rising Scholars Award program.
For public colleges and universities, the next step in the budget process is to formulate their operating budgets for FY27. Following approval by institutional governing boards, the State Regents will consider these proposed operating budgets at the June 25, 2026 meeting.