OUS Budget Priorities:
Access, Affordability, Excellence & Economic Development

The State Board of Higher Education understands that achieving all of Oregon's goals for postsecondary education cannot occur in a single or even two biennia. Thus the Board's budget priorities and Working Group initiatives are based on a multi-biennial approach, working with Oregon policymakers and others to gain agreement on current and future goals. Sustained investments in higher education over a period of time can have a great impact in the state through a consistent rebuilding and investment plan that meets the needs of Oregonians and our economy.

The Board-adopted budget priorities included in the Governor's Recommended Budget (GRB) reflect a determination to advance postsecondary education in Oregon in a balanced and responsible manner.

Access
• Delivery & Productivity
• Enrollment
• Deferred Maintenance

Affordability
• Oregon Opportunity Grant Growth
• Moderating Tuition Increases
• Fee Remissions

Excellence
• Faculty Recruitment & Retention
• Undergraduate & Graduate Instruction

Economic Development
• ETIC Investments
• Tech Transfer & Commercialization
• Capital Construction

Access Priorities

The higher education budget priorities for 2005-07 include initiatives that will move students quickly and seamlessly from one education sector to the next, including funding for a joint K-12, community college, and OUS data system, and development of a Statewide Oregon Transfer Module. Deferred maintenance projects will invest in and protect the safety and stability of campus facilities, ensuring the full use of these valuable state-owned assets for current and future generations of students and Oregon communities.

• The GRB will enable OUS universities to maintain enrollment of more than 80,000 students per year in 2005-2007.
• $2.2 million is included in the GRB for a data transfer process that supports student academic credit movement between high schools, 2-year colleges, and 4-year postsecondary institutions.
• The budget makes a substantial investment in university facilities, including new construction in Medford to support dual enrollment between Southern Oregon University and Rogue Community College, as well as funding for significant repair and maintenance at each campus to improve access and safety for students and the campus communities.

Affordability Priorities

Keeping tuition increases at levels lower than those experienced in 2003-2005 and helping our low- and moderate-income Oregonians afford a college education are key components of the OUS budget priorities.

• The budget allows universities to keep tuition revenue increases below those seen in the last two biennia, averaging no more than 7% the first year and 5% in the second year across the System.
• The GRB doubles the Oregon Opportunity Grant to $91.6 million, which will improve the affordability of college for Oregonians, and provide a level of stability to the campuses in their support of students' financial aid needs (in the OSAC budget).
• The proposal to phase out the limitation on fee remissions addresses the affordability gap for Oregon's most economically disadvantaged students, created by stagnating aid and increasing tuition rates over the last few biennia

OUS Funding Per Student FTE Education and General Programs


1999-2001: Student share of costs = 41%, State = 51%, Other = 8%
2001-2003: Student share of costs = 46%, State = 46%, Other = 8%
2003-2005: Student share of costs = 55%, State = 36%, Other = 8%
2005-2007: Student share of costs = 56%, State = 35%, Other = 9%

This share-of-costs chart includes Other Funds Limited that supports the Education and General operating budget. It excludes OSU Statewide Public Service Programs and non-limited funding for self-supporting services and sponsored research.

Excellence Priorities

The GRB addresses excellence in public higher education through investments in retaining the excellent faculty within the System, and in preventing further erosion in core programs and services.

• The importance of recruiting and retaining top faculty is demonstrated by a $1 million investment in the GRB and through the elimination of the salary freeze for all state employees. This will assist campuses in retaining top faculty who have contributed significantly to student success, academic excellence, and graduates' job readiness, and who bring millions of dollars annually into the state through grant funding of critical research and economic development initiatives.
• Excellence is exemplified in the high quality undergraduate and graduate instruction provided to campuses. The GRB includes $545.5 million for instruction and targeted programs to ensure academic excellence and job-ready graduates who can support Oregon's workforce needs.

Economic Development Priorities

These economic proposals make strategic investments to support Oregon’s knowledge economy, they create jobs, and build stronger public-private partnerships through the scientific and research breakthroughs occurring on OUS campuses.

• The GRB invests in the commercialization of the intellectual capital developed by our campus research enterprise (in Oregon Economic and Community Development Department budget). This creates new companies, new jobs, and new market niches for Oregon that help sustain a strong, diverse economy.
• The $21.7 million ETIC portion of the OUS General Fund budget will enable OUS and its industry partners to continue meeting the state's goals of making engineering and technology education a strategic resource that supports our economy and largest industry sector, and creates opportunities for all Oregonians.
• More than 3,000 jobs will be created across the state through the funding of deferred maintenance and capital construction projects on all seven campuses (estimated 9 jobs per $1 million on $355.4 million capital construction budget.

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