WORTHINGTON – Ohio University officials discussed the effects of declining state funding on the university’s financial situation Thursday at the Board of Trustees’ Audit, Finance, Facilities and Investment Committee meeting.

“The perception is that universities are driving tuition up on a whim,” said OU President Roderick McDavis. “What the public doesn’t see is the state funding facts showing that universities have to provide the same product with less and less support.”

While state funding levels have experienced a slight decline since 1997, inflation rates compound the difference, according to a presentation by William Decatur, vice president for Finance and Administration.

“We’re the easy target,” said C. Daniel DeLawder, committee chair. “With government trying to limit spending, it’s easy to make us look like the bad guys by having to jack up tuition.”

From 2000 to 2005, state appropriations have decreased almost $10 million, according to the OU Factbook. At the same time, however, student tuition and fees increased more than $67 million.

“At our current tuition level, it’s hard to compete financially with our peer institutions,” Decatur said.

Sizing up OU

The officials focused on the university’s net assets, more than $506 million for 2006.

“This is what we look at to speak about the health of the institution,” McDavis said. “At the end of the day, it’s all about expendable net assets and driving that number higher.”

Though OU’s total assets rose $56 million since 2005, Decatur said the increase hasn’t affected the net asset total enough when compared to universities such as Kent State University, Miami University and University of Cincinnati.

Total assets (2006): $794,437,976

Total liabilities: $288, 148,114

Total net assets: $506,289,862