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Higher Ed Board approves tuition, budget & cut plan, 2010-11 academic year

Contact:Di Saunders, Cell: 971-219-6869; Office: 503-725-5714 

Senate President Courtney met with Board, commits to protecting public university resources

PORTLAND, June 4, 2010 – The State Board of Higher Education (the “Board”) met today at Portland State University to review and approve tuition levels, budget cuts, and campus allocations for the academic year 2010-11, among other items considered by the Board.

Senator Courtney Visit     Board president Paul Kelly welcomed the Honorable Peter Courtney, Senate President, to the Board meeting. Senator Courtney expressed his support of public higher education and his firm belief in access and affordability for Oregon students, and the opportunity that public higher education represents for Oregonians. He noted that he wanted to state publicly that the Oregon University System fund balances, or reserves, would not be redirected by the legislature. Sen. Courtney indicated that OUS reserves are needed to deal with the funding challenges at the public universities, such as ensuring students have available faculty, courses and class sections that will enable them to move through their degree programs. He also noted that there will be a special Emergency Board meeting of the Legislature on June 15 to further discuss other critical issues related to higher education. These include shortfalls in the Oregon Opportunity Grant and how OUS may help to cover these for OUS students, and the OUS request to increase its expenditure limitation so that it can spend tuition resources to educate OUS students coming to the universities this fall. Chancellor George Pernsteiner said that the OUS presidents have come to an agreement to cover any shortfalls in the Opportunity Grant for OUS students through fee remissions, also known as tuition discounts, for eligible low and moderate income Oregonians. Board members and the Chancellor thanked Senator Courtney for his support of Oregon students and his commitment to higher education access and quality.

Policy Packages     Jay Kenton, OUS vice chancellor for finance and administration, discussed the newly submitted 2011-2013 Policy Packages, which are in addition to those reviewed by the Board last month. These include: system-wide faculty salary increases of $7.6 million; system-wide enrollment growth funding of $74.1 million; extending the Forest Harvest Tax at its current rate of $0.92 per 1,000 board feet harvested (OSU); Regional Services Institute at $200,000 (EOU); Rural Student Access Program at $300,000 (EOU); and Center for Excellence, Transportation Electrification and Smart Mobility at $1.5 million (PSU). Kenton said that the Board will be reviewing these to a greater extent at the July Board meeting to determine which will be included as part of the 2011-2013 budget request.

Budget Allocations/Reductions     Kenton summarized the proposed approach for the allocation of the OUS 2010-11 Annual Operating Budget, which also included a reduction plan of $31.6 million for the 2009-2011 operating budgets mandated by the Governor based on lower than projected revenue projections for the state. Kenton noted that the allocation assumptions also include an enrollment increase projection of 4.6% for the 2010-11 academic year. Including the reductions, total General Funds for 2010-11 are $349.5 million, and total federal stimulus funds are $38.9 million, for a total state and federal funding budget for OUS of $388.5 million. Individual campus reductions for the current biennium totaled the following (rounded up): EOU = $1.2 million; OIT = $1.4 million; OSU = $7.0 million; OSU-Cascades = $348,017; PSU = $5.1 million; SOU = $1.2 million; UO = $4.7 million; WOU = $1.3 million; and Chancellor’s Office and other system-wide operations = $900,000. For the Statewide Public Services run through OSU, reductions include $2.7 million for Agriculture Experiment Station; $1.2 million for the Extension Services; and $292,163 for the Forest Research Lab. The Board approved the budget allocation and reduction plan.

Tuition & Fees Rates for 2010-11     Kenton reviewed the tuition and resource fee proposals for the Board. Kenton noted that all of the OUS campuses have now rolled programmatic resource fees into the base tuition amount, one year ahead of schedule; this was done in collaboration with the Oregon Student Association in order to increase transparency of actual student costs, and to have resource fees covered by financial aid awards. Kenton noted that these OUS tuition increases are well below most other state’s tuition increases for the upcoming fall; and the Chancellor added that OUS has shown more restraint in tuition increases over the past several years than many states have, thus putting our tuition rates below the average of our peers in most cases. The Board approved the proposed tuition, fee, housing and meal rates as presented.

Including all credit hours, the campuses’ averages for tuition increases overall are 6.2%, with individual campus overall increases at the following: Eastern Oregon University = 2.6%; Oregon Institute of Technology = 6.2%; Oregon State University = 6.0%; OSU-Cascades Campus (Bend) = 6.2%; Portland State University = 6.0%; Southern Oregon University = 5.2%; University of Oregon = 6.0%; and Western Oregon University = 5.2% for non-Promise program students, and 8.8% for new cohort Promise students (students who have a guaranteed, stable tuition rate for 4 years while at WOU). More detail of nonresident and graduate program tuition and fees and room and board rates are available at: /sites/default/files/state_board/meeting/dockets/ddoc100604-FB.pdf . These tuition rate increases are in full compliance with the Legislative Budget Note which defined upper average tuition limits for the campuses.

Tuition and Fee Rates for 2010-11 Academic Year, Oregon University System

Chart shows only annual rate for 15 credit hours for Resident Undergraduate students. See above for overall averages.

UNIVERSITY

2010-11 Tuition†

2009-10 Tuition

% increase 2009-2010

2010-11
Tuition & Fees

2009-10 Tuition & Fees

% increase 2009-2010

EOU

$5,244

$5,109

2.6%

$6,639

$6,456

2.8%

OIT

$5,850

$5,130

6.2%

$7,260

$6,570

7.0%

OSU

$5,760

$5,436

6.0%

$7,115

$6,727

5.8%

OSU-Cascades

$5,580

$5,256

6.2%

$6,120

$5,796

5.6%

PSU

$5,648

$5,321

6.1%

$7,130

$6,764

5.4%

SOU*

$5,265

$4,788

10.0%

$6,789

$6,252

8.6%

UO

$6,930

$6,180

6.2%

$8,190

$7,428

5.4%

WOU (Tuition Promise Rates) **

$6,135

$5,640

8.8%

$7,410

$6,813

8.8%

(’10 cohort)

(’09 cohort)

 

(’10 cohort)

(’09 cohort)

 

          

SYSTEM AVERAGE (non-weighted)

$5,802

$5,358

6.5%

$7,082

$6,601

6.2%

*SOU is eliminating their tuition plateau as of Fall 2010; while the 15 credit hour increase is 10%, reflecting the change in the tuition plateau, SOU’s overall increase is 5.2% including all credit hours.
* *WOU’s Tuition Promise program guarantees the tuition rate will not increase for 4 years. WOU resident rates in this chart are the 2010 undergraduate Promise rate; the percent increase compares 2010 rates to 2009 rates, and is for new students. Non-Promise student rates are noted in the text above this chart.
† This tuition only rate also includes rolled-in Programmatic Resource Fees; all campuses have now rolled-in Resource Fees into base tuition, with OIT (also rolled in their Technology fee into tuition) and UO rolling those in beginning in fall 2010, and other campuses having done so over the last few years.

 

Capital Construction     OUS associate vice chancellor for facilities and capital construction, Bob Simonton, provided a preview of the 2011-2013 capital construction budget and project list; a more detailed review will be provided to the Board in July. He noted that capital priorities are ranked by a combination of factors, including the master plan, board priorities, cost savings, critical need, campus priorities, “finishing what we’ve started” and use of leveraged dollars. Simonton said that capital repair remains a critical issue for OUS, with continuing high levels of deferred maintenance on the campuses, now at $670 million, although this increase has stabilized due to significant investments by the Legislature in the 2009 Session. A final capital budget will be proposed for Board adoption at its July 2010 meeting.

UO Casanova License Agreement     Board president Kelly and UO president Richard Lariviere reviewed for the Board the proposal seeking approval for the UO to enter into a License Agreement with Phit, LLC to permit the construction of improvements to the Len Casanova Athletic Center and a new Soccer and Lacrosse Complex. Phit will pay for the projects’ construction and donate them to the UO, and funding for on-going operations and maintenance of the Center will come from non-state UO athletic department revenues and gifts. The agreement requires approval of plans and specifications by UO prior to work beginning. The agreement will begin on July 1, 2010 and end on February 15, 2013 or when the projects are completed, whichever is earlier. After hearing public testimony, the Board authorized the UO to enter into a License Agreement with Phit, LLC, permitting the construction of improvements to real property with a value in excess of $5 million, consistent with the terms and conditions described in the docket materials and the license agreement. Board president Kelly said that a lot of trust has been placed in the UO through this authorization to follow agreed upon stipulations laid out by the Board and the Chancellor’s Office, which include payment of prevailing wages, competitive procurement of major subcontracts and selecting Women, Minority, and Emerging Small Businesses to be subcontractors and suppliers.

In other action and discussion at the meetings, the Board and/or its committees:

  • Accepted a recommendation that a specific asset allocation proposal be developed and that potential funds be identified that will achieve the following strategy: Growth: 60-70% (New OUS) and 71% (Current OUS); Inflation Hedge: 15-20% (New OUS) and 0% (Current OUS); Diversifiers: 15-20% (New OUS) and 29% (Current OUS). A revised investment policy will be presented to the Committee at its next meeting.
  • Approved the Oregon University System Funds Management Program, subject to all subsequent approvals required by the Oregon State Treasury and the Oregon Investment Council.
  • At an earlier meeting of the Governance and Policy Committee, the Committee nominated and made a recommendation to approve the re-election of Paul Kelly as president and Jim Francesconi as vice president of the Oregon State Board of Higher Education. The full Board unanimously voted to approve the Committee’s recommendation.
  • Approved the awarding of an honorary degree by OSU to Ralph Einar Martinson at the upcoming June 2010 graduation ceremony.
  • Authorized the Chancellor to negotiate and execute a brief extension – no longer than August 1, 2010 – of the current employment contracts of PSU president Wim Wiewel and OIT president Chris Maples, pending their performance evaluations in July 2010, execution of a new employment contract after the performance evaluation, and Board approval of the presidential reappointment.
  • Heard reports from the Interinstitutional Faculty Senate; and the Oregon Student Association.

Oregon University System comprises seven distinguished public universities, reaching more than one million people each year through on-campus classes, statewide public services and lifelong learning. For additional information, go to www.ous.edu

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