OSU asks Legislature for $295 million to replace aging veterinary teaching hospital; leaders cite accreditation and rural veterinarian shortage

Oklahoma State University told the Senate Appropriations Committee it needs $295 million to construct a new veterinary teaching hospital and to support recruitment of clinical faculty, citing accreditation concerns and a statewide shortage of large‑animal veterinarians.

Jim Hess, interim president of Oklahoma State University, told senators that the current teaching hospital is about 43 years old and that earlier plans to renovate the existing building would not address fundamental teaching and clinical deficiencies. Hess said architects and construction managers concluded renovating the current structure for the intended educational and clinical workflows would be costly yet leave the facility functionally inadequate.

OSU requested the $295,000,000 be provided from the Legacy Capital Fund to avoid interest charges; the university estimated a 20‑year amortization from Legacy would cost about $14,750,000 per year. Hess said an alternative financed through bonds would increase annual repayments to about $22,700,000.

Hess described three discrete needs: recapitalizing the aging hospital to attract and retain clinical faculty; expanding clinical subspecialty lines; and increasing the number of in‑state students. He said the College of Veterinary Medicine currently admits 106 students per class and that, owing to prior budget shortfalls, 48 of the class are out‑of‑state students and 58 are Oklahoma residents. OSU calculated replacing the out‑of‑state slots with in‑state students would require roughly $5.1 million per year in recurring support.

Hess also described a scholarship and loan‑forgiveness program enacted last year, referred to in testimony as the Lehi Denny Act. Under that program, the university awarded $25,000 scholarships to students who contractually agree to practice in rural communities; Hess said $600,000 appropriated last year funded awards that secured eight students’ commitments to serve in communities under 25,000 in population.

The university's interim president and the OSU Vet Med Authority CEO, Dr. Jeff Stroup, told senators the college is currently on probation with its accreditor but said the accreditor gave latitude because the university proposed facility replacement. Hess warned that without a new facility, the college would struggle to recruit clinical faculty and could not expand class size; he said some parts of the wider plan to add clinical faculty were already underway and required about $2.1 million in recurring funds to expand subspecialties such as oncology and radiology in the coming fiscal year.

Committee members asked about bond repayment scenarios, the status of previously appropriated funds and the consequences of failing to obtain funding. OSU said about $78.2 million of a prior appropriation remains available and that total all‑in needs—including site work and equipment—amount to about $373 million when combined with the prior appropriation; OSU presented the $295 million request as the remaining primary capital need. On accreditation, Hess said the current probation status does not affect the graduation of current students but that continued probation or failure to address facilities would harm the college’s standing and recruitment over time.

Hess emphasized the connection between the veterinary college and Oklahoma’s agriculture economy: state testimony noted Oklahoma has one of the nation’s largest beef‑cow populations and that the veterinary college’s mission includes supplying veterinarians to rural producers. The hearing included multiple senators who stressed the economic importance of veterinary services for rural communities.

No formal legislative action was taken at the hearing; OSU said design and planning decisions would depend on whether the legislature funds the project and whether the university receives Legacy or bond financing.