After Wednesday’s abrupt announcement that Dr. Kayse Shrum had resigned as Oklahoma State University president, the university’s governing board appointed vice provost of the OSU Center for Health Sciences Jim Hess as interim president today amid unanswered questions about apparent financial issues members thus far have declined to discuss.
The Board of Regents for the Agricultural and Mechanical Colleges voted unanimously to appoint Hess interim president during a special board meeting that featured a roughly one-hour executive session. Hess has led a notable career in higher education with multiple executive administrative positions under his belt, including former chief operating officer and vice president of the OSU Center for Health Sciences and the first CEO for the OSU Medical Authority.
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“I’m excited and honored to accept the role within (the) unprecedented Oklahoma State University,” Hess told the board. “I have witnessed firsthand the transformative power of OSU impact across Oklahoma. My commitment is always to put students first. They are the heart and the soul of this university, and I’m excited to meet so many of them in the coming weeks and months, both here at Stillwater, in Tulsa, Okmulgee and Oklahoma City. Simply put, our students’ success is our success, and they represent the best of what Oklahoma State University has to offer.”
The OSU/A&M Board of Regents began the emergency search for interim president after Shrum’s resignation, which became effective Monday, Feb. 3, after regents voted Jan. 31 to take a series of actions related to the supposed improper transfers of “legislatively appropriated funds” away from the OSU Medical Authority. The Jan. 31 board agenda described “confidential complaints,” and the board took four actions related to the OSU Innovation Foundation, which attempts to connect private business interests with university research.
With little to no discussion or comment from the regents at the start of today’s meeting, Chairman Jimmy Harrel thanked attendees for their “interest” in OSU and quickly activated a vote to enter into executive session.
Following the hour-long executive session, the regents returned with Hess following not far behind, settling in the back of the room as open session reconvened. Despite lingering questions about the issues that precipitated Shrum’s departure, Secretary of Agriculture Blayne Arthur was the only regent who came close to referencing the elephant in the room.
“This week’s events have come as a surprise to me, and I know and understand there’s a range of emotions across our students, faculty, staff and alumni,” Arthur said. “During times of transition, it is natural to feel uncertainty. However, as an alum, as a local here in Stillwater, and as a fellow regent, I think I can speak for my colleagues in this room by saying this board is committed to ensuring the strength, stability and success of the OSU system. OSU has a proud history of resilience and excellence, and we will continue to build on that legacy as we move forward.”
OSU chief communications officer Lance Latham released a statement Friday afternoon:
Last Friday, as part of the Jan. 31 OSU A&M Board of Regents meeting’s posted agenda, the board met in executive session to discuss confidential reports that had been made to the board. Following the executive session, the board voted on four motions, which were approved and are public information.
Both the OSU A&M Board of Regents and Oklahoma State University are committed to transparency. We appreciate the public’s patience while these confidential reports are in a standard fact-finding and review process.
To be clear, both the board and the university are also committed to ensuring financial accountability and the responsible use of state-appropriated funds.
Per standard board process, the meeting minutes from the Jan. 31 meeting will be published after they are approved at the next regularly scheduled board meeting in March.
‘I don’t think we have all the facts’
As they adjourned Friday, regents attempted to make quick escapes from the hoard of reporters seeking more information. Harrel, the chairman, declined to answer questions and directed media to Donelle Harder, a communications professional and former senior advisor for Gov. Kevin Stitt.
Fielding questions about what led to the former president’s resignation and the limited of information being made available by OSU and the board of regents, Harder said she could not speak on the record about the Innovation Foundation investigation and that the regents have shared “what they can.”
“I don’t know that there’s secrecy,” Harder said after the meeting. “There was an open meeting on Friday (at) which motions were taken, and you can have those, those motions, and the board will continue to meet, and those things will, you know — conversations will take place. And I would just reflect on those board meetings that come available, or you’re welcome to contact the university’s office and make any requests.”
The agenda for the Jan. 31 meeting, which included the four approved motions involving the Innovation Foundation review, is no longer available on the regents’ website.
Asked why the regents have not commented on what happened to prompt potential investigations and a change in leadership, Harder said the regents received Shrum’s resignation and that it is “all they’re at liberty to speak about.”
Students, staff, faculty, alumni and donors are not the only members of the OSU community awaiting answers. On Thursday, leading state legislators said they want to know more about the situation as soon as possible.
“All I know is what you all have reported,” said Senate Appropriations and Budget Committee Chairman Chuck Hall (R-Perry). “We’ll spend some time with those specifically related to what happened at the university. I’m sure I’ll get a briefing on that. I’ve yet to receive that briefing, but I can tell you I spend a lot of time evaluating agency operations, expenses, where that money goes and how they utilize it. (…) As information becomes more and more public, I’ll evaluate — I’m sure with my counterpart over in the House — and we’ll get a better understanding and a better feel for exactly what happened. Right now, I don’t think we have all the facts.”
House Speaker Kyle Hilbert (R-Bristow) said he was just as shocked as everyone else when he heard the news and that he continues to have conversations with the board of regents about “everything and whatever happened.”
“I didn’t hear too much sooner than you all did,” Hilbert said. “It was certainly a surprise. (…) We’ll see as things come out what the reasoning was. I think there’s a lot of speculation, but until more facts come to light, we’ll see.”
Hilbert also asserted the timing of the situation is cause for concern, given OSU has made what could be record funding asks for this year’s legislative session, including a $300 million request for a new College of Veterinary Medicine building and a new “research university” funding designation that would carry an annual $75 million appropriation.
“Before we dig into those future asks, we’re going to want to know what happened with the previous requests they had,” Hilbert said Thursday. “Once that [interim president] is selected, I have personally told the regents I want to meet with that person (…) to have those conversations about the need to come to the Legislature and talk about what did or didn’t happen so we can be fully aware of it.”
Hilbert said he had been on OSU’s Stillwater campus Thursday, Jan. 30, to meet with Shrum and other university leaders. At no time did he get the sense something was wrong, he said.
“Clearly something happened,” Hilbert said. “That’s not a secret based on reporting. But we as a Legislature, we’ll dig into what happened. Those are state funds that were appropriated, and we don’t know. And so we’re going to dig in and see what we can find out as the regents are able to make those things known.”
Background on Jim Hess
Originally from Henryetta, Oklahoma, Hess earned bachelor and master degrees at Northeastern State University before earning his doctorate at OSU. Hess has served 43 years within Oklahoma’s higher education system, beginning his career at Rogers State College in 1981.
In announcing Hess as interim president, an OSU press release detailed his academic career:
Hess began his higher education career at Rogers State College in 1981, serving in a number of senior leadership positions there over the next 15 years. In 1996, the University Center at Tulsa and Rogers State were merged to form Rogers University, where Hess served as vice president for administration. Two years later, the institutions were legislatively separated, and Hess was appointed transition CEO to spin off the four campuses to create OSU Tulsa and Rogers State University. Hess continued with Oklahoma State University, serving as vice president and chief operating officer for OSU Tulsa from 1999 to 2003, doubling enrollment and creating BOB, the Big Orange Bus shuttle service between Tulsa and Stillwater.
Hess has curated an impressive resumé of leadership roles within OSU over two decades, being appointed to roles such as COO and vice president of the OSU Center for Health Science, chief executive officer of the OSU Physician Group, and the first CEO of the OSU Medical Authority. Hess’ bio also states he was “instrumental in creating” the OSU Medical Authority and the OSU Medical Center.
Oklahoma State Regents for Higher Education Chancellor Sean Burrage shared his support of Hess’ appointment.
“I have known Jim for year,” Burrage said in an OSU press release Friday. “His colleagues highly respect him. He brings a deep understanding of Oklahoma higher education and a proven track record of advancing institutional excellence. His many years of leadership within the OSU system demonstrate his ability to build programs that serve our states needs and create opportunities for students. The State Regents for Higher Education look forward to working with Jim as he guides Oklahoma State University during this important period.”
At a Feb. 5 State Regents for Higher Education board meeting, Burrage told reporters he had learned of Shrum’s resignation Tuesday night and that he had no knowledge about the Innovation Foundation inquiry.
Prior to Friday’s promotion, Hess had served as the CEO of the OSU Veterinary Medicine Authority and a professor of family medicine. According to his bio, Hess resides in Owasso with his wife, Angela, and they have two adult children, one grandson and three granddaughters.
