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Higher Ed Board approves fall ’08 tuition, UO arena bonds and contracting

Di Saunders –Cell: 971-219-6869 (today, Friday, and over weekend); Office: 503-725-5714

Tuition increases of 3% maintained for 4th straight year

PORTLAND, June 6, 2008 –The State Board of Higher Education (the “Board”) met yesterday and today at Eastern Oregon University in La Grande to consider fall 2008 tuition increases, items related to the planning and construction of the University of Oregon arena project, and proposed programs to be considered by the 2009 Legislature in the OUS budget, among other items discussed by the Board.

Tuition & Fees Rates and Changes     Jay Kenton, OUS vice chancellor for finance and administration, and Brian Meara, OUS interim director of budget operations, reviewed the tuition and resource fees transition plan developed jointly with the Oregon Student Association, and approved by the Board earlier this year. Meant to increase transparency of tuition and fee charges at OUS institutions, among other goals, the plan begins to fold resource fees into base tuition rates. The plan also includes availability of financial aid for students in programs that begin charging differential tuition, which is higher than standard tuition rates, so that cost is not an impediment to students when choosing a major. The Board authorized the chancellor or designee to report on these transition plans and details to the Legislative Emergency Board, and related information in the 2008-09 Academic Year Fee Book.

Kenton and Meara summarized, and the Board reviewed and approved, tuition and fee increases for 2008-09. The recommendations are in compliance with the Legislative Budget Note which limits tuition increases to 3.4% for undergraduates on average, across the system, and resource fees to 8.6% of tuition revenue. Room and board increase recommendations were also approved by the Board. Below is a summary of the resident undergraduate tuition and fee increases and comparisons with the current year; more detail of nonresident and graduate program tuition and fees is available at: http://www.ous.edu/state_board/meeting/dockets/ddoc080606.pdf, beginning on page 67.

Oregon University System Tuition and Fee Rates for 2008-09 Academic Year
Annual Rate for 15 credit hours for Resident Undergraduate students; overall average tuition increase including all credit hours and all campuses is 3.4%*


2007-08 Tuition**

2008-09 Tuition**

% increase over 2007-08

2007-08 Tuition and Fees

2008-09 Tuition and Fees

% increase over 2007-08











































WOU Continuing Rates







WOU* Tuition Promise Rates (new students)

(’07 cohort)

(’07 cohort)


(’07 cohort)

(’07 cohort)


SYSTEM AVERAGE (non-weighted)*







*Excluding WOU Tuition Promise program. Each cohort year’s tuition rate is guaranteed for 4 years not to increase.
** In order to show comparable tuition rates between 2007-08 and 2008-09, both rates include the applicable universal and resource fees folded into the base tuition amount, although the inclusion of these fees into the base tuition amount begins for the 2008-09 academic year (OIT and OSU are not folding in universal or resource fees into tuition for 2008-09). Thus the average increase is shown as 3.6%, reflecting the addition of the fees folded into tuition, and thus not exceeding the 3.4% tuition increase cap.


UO Arena     After a thorough review of the UO arena project and history from UO president Dave Frohnmayer, and representatives from the state Treasurer’s Office and consultants related to the project, and discussion by the Board, the resolution for the sale of $200 million in Article XI-F(1) Bonds was approved by the Board. The Board also voted approval of the finding that the UO Athletic department buildings and structures, including the arena, conservatively appear to be wholly self-liquidating and self-supporting. The Board separately approved the UO’s request for a sole source determination made by president Frohnmayer to enter into a sole source contract with National Championship Properties (NCP) related to design, pre-construction and construction of the arena, and to delegate to president Frohnmayer the responsibility to ensure performance of all related obligations. The Board also approved UO’s request to continue to authorize NCP to contract with Ellerbe Becket, TVA, and Hoffman Construction; and approved that any protests submitted related to these contracts be filed with the OUS Chancellor’s Office. The Board also approved a motion that OUS conduct a formal review of the entire arena process to determine lessons learned, especially in the case where a major private donation is a component of a capital projects.

OUS Policy Option Packages     Chancellor George Pernsteiner reviewed the proposed policy option packages to address priorities and issues of critical importance related to higher education in Oregon. Budget priorities for 2009-2011 include: (1) Educational Quality and Delivery investments that will: decrease faculty/student ratios and increase academic quality and access; bring faculty salaries closer to peer averages; increase OUS competitiveness to attract advanced degree students; and ensure safe and efficient campus facilities through critical capital repairs and deferred maintenance; (2) Student Affordability, Access and Success investments that will: freeze tuition costs at the smaller OUS institutions; increase underserved students in pre-college preparation and in-college retention programs; support previous and current enrollment increases; support the preparation and retention of K-12 teachers; continue alignment and ease of transfer between K-12, community colleges and OUS; increase degrees through support of university centers on community college campuses; and develop ways to identify and measure learning outcomes; (3) Research and Sustainability investments that will enhance research competitiveness through strategic partnerships and a focus on sustainability and biotechnology, elevate research connections via workforce and economic development, and improve research communications and assessment; support a collaborative effort to create a National Life Sciences Center in Portland; and create increased collaboration between OUS research faculty and the manufacturing cluster; and (4) Economic and Workforce Support investments that will: increase the number of engineers, technology workers and applied scientists to meet Oregon’s workforce needs, hiring research faculty and improving laboratories, and expanding the pre-college pipeline; and through Statewide Public Services, continue and expand enabling partnerships with natural resource industries, environmental and natural resource agencies, and stakeholders to enhance Oregon’s economy and environment. The Board discussed the need to further prioritize and hone the proposals at the staff and Board levels prior to and at the July board meeting, with a final version presented to the Governor and the Legislative Fiscal Office in the fall.

In other action and discussion at the meetings, the Board:

    • Discussed the 2009-2011 capital construction request which the Board will be asked to approve at the July 2008 Board meeting. Staff will present priorities built through an application of criteria.
    • Approved the following new academic programs: (1) Oregon State University – Graduate Certificate in Fisheries Management, effective spring 2008; Graduate Certificate in Marine Resource Management, effective spring 2008; (2) Portland State University – Master of Architecture, effective spring 2008; B.F.A. in Visual Art, effective fall 2008; (3) UO – Graduate Certificate in Ecological Design, effective fall 2008; and (4) Oregon Health & Science University – Graduate Certificate in Public Health, effective fall 2008.
    • Authorized OSU to enter into a lease agreement with the Department of State Lands for land in Netarts Bay.
    • Approved the proposed July sale of $7,608,000 in Certificates of Participation for technology equipment and classroom and laboratory upgrades.
    • Approved a request to the State Treasurer to issue $26,974,500 of Article XI-G bonds in July for Oregon Institute of Technology and PSU construction projects previously approved by the Board and the Legislature.
    • Approved a request to the State Treasurer to refund outstanding general obligation bonds to achieve debt service savings, the amount dependent on market conditions at the time of the sale.
    • Authorized the chancellor or designee to seek Emergency Board approval of a budget request for $250,000 to initiate new research and extension efforts on bee health.
    • Adopted the new version of several temporary rules related to contract awards and procurement.
    • Heard a report on the work of the Engineering and Technology Industry Council chair, Fred Ziari.
    • Heard an overview of the work of the Governance Task Force of the Board by Board member Paul Kelly, chair of the group.
    • Chancellor Pernsteiner announced the Search Committees for two new presidential searches, being undertaken by the EOU and UO (see related press releases at www.ous.edu) and expected to be completed in spring 2009.
    • Heard reports from the Interinstitutional Faculty Senate; and the Oregon Student Association.

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