Oregon University System

Oregon University System Logo

OUS

 

Higher Ed Board Finance & Administration Committee provides preliminary approval for universities’ 2011-12 budget allocations

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

PORTLAND, September 9, 2011 – The State Board of Higher Education’s Finance and Administration Committee met today to, among other items, review annual and biennial budgets for the OUS institutions, quarterly management and investment reports, and several lease agreements.

Budget Allocation   

OUS vice chancellor for Finance and Administration, Jay Kenton, and associate vice chancellor for budget operations, Jan Lewis, presented the proposed biennial 2011-2013 budget approach for the OUS, and the proposed fiscal year 2011-12 operating budget allocations for the system institutions. Lewis noted that the OUS received $680.4 million in state General Fund for Education & General programs, Statewide Public Services, and debt service; and $25.4 million in Lottery funding for sports lottery program and debt service for 2011-2013. State funding now makes up only 13% of the OUS budget. She noted that the Legislature held back 3.5% of the originally planned appropriations to insure the adequacy of state reserves; depending on economic conditions in 2012, the Legislature may appropriate some or all of the holdback.

The 2011-12 annual budget, including all sources of funds (e.g., state General Fund, tuition revenues, indirect cost recovery, and all other revenues), are recommended at the following levels: Eastern Oregon University = $54.8 million [$14.3 million in General Fund]; Oregon Institute of Technology = $55.1 million [$16.3 million in General Fund]; Oregon State University – Corvallis = $635.9 million [$79.4 million in General Fund]; OSU – Cascades = $8.4 million [$4.5 million in General Fund]; Portland State University = $503.9 million [$58.9 million in General Fund]; Southern Oregon University = $89 million [$13.7 million in General Fund]; University of Oregon = $738.8 million [$47.5 million in General Fund]; Western Oregon University = $98.2 million [$14.5 million in General Fund]; and the Chancellor’s statewide system office = $13.5 million [$5.8 million in General Fund]. Statewide Public Services 2011-12 funding = $121.7 million [$51.3 million in General Fund]. Other allocations proposed include Debt Service of $144.4 million in General Fund, Lottery Funds, and Other Funds; and $259.8 million in Capital Construction funding, all through Other Funds (bonding authority). These annual allocations for the campuses and other areas are approximately half of the biennial estimated resources. The total OUS biennial budget for 2011-2013 = $5.3 billion [$669.2 million in General Fund, $2.3 billion in Other Funds (mainly tuition), $23 million in Lottery Funds, $2.3 billion in Other Funds.

Lewis said that there are two Budget Notes from the Legislature that the OUS is held to, including: (1) Tuition Increases cannot exceed an average of 8% in the biennium and are not to exceed 9% in any given year for OIT, OSU, PSU and UO; and may not exceed an average of 6.5% in the biennium and are not to exceed 7.5% in any given year for EOU, SOU, and WOU; and (2) Compensation Reductions: if there are reductions to total compensation for staff and/or faculty due to budget cuts, management and administration should be subject to similar reductions to ensure equity between administrators and front-line staff.

Kenton noted that campuses are on target to meet or exceed FTE enrollment projections for 2011-12. More detailed information was also provided on Targeted Programs which are generated through Board and/or legislative initiatives and are primarily mission-based, but can be enrollment driven, and are established as one-time funding that needs to be continuously appropriated, and are subject to inflation adjustments or legislative cuts. This funding can be used to originate a program that, as it becomes well established, is subsequently absorbed into the regular campus or central services operations.

After their review and discussion, the Committee voted to recommend the 2011-12 operating budget to the full Board for approval at the October 7, 2011 meeting.

In other action and discussion at today’s meetings, the Committee:

  • Accepted the Quarterly Management Report for June 30, 2011, as presented by Michael Green, OUS controller.
  • Accepted the Annual Investment Reports as of June 30, 2011, as presented by Michael Green, OUS controller, and Karen Levear, OUS director of Treasury Operations.
  • Approved the lease between OSU and OSU Bookstore, ground floor of the parking facility located at SW 26th Street and SW Washington Way on the OSU campus; and authorized the Board president and secretary of the Board to execute the necessary documents to effect the lease in its final format. With this approval, the OSU Bookstore can proceed with construction of the planned 50,000 square foot retail store facility and administrative offices, at a cost of $10 million, and financed entirely by the bookstore, which is an Oregon nonprofit corporation.
  • Authorized the chancellor or designee to execute a provision in the OSU Site License Agreement to REDCO related to solar installations for the additional parcel of land outlined in the docket. All agreements have had Oregon Department of Justice legal sufficiency review and have been fully executed.
  • Approved the lease between OSU and the OSU Foundation and the Trysting Tree Golf Club, Inc., to be forwarded to the full Board for approval of the lease between the State of Oregon acting by and through the State Board of Higher Education on behalf of OSU, the OSU Foundation and Trysting Tree Golf Club, Inc.; and that the Board president and secretary of the Board execute the necessary documents to effect this lease in its final format.
  • Heard an update from Ryan Hagemann, OUS general counsel, about the transition from use of DOJ attorneys to having all legal counsel resident on the OUS campuses and in the Office of the Chancellor, which acts as legal counsel for the smaller OUS institutions.

The Oregon University System comprises seven distinguished public universities and one branch campus, reaching more than one million people each year through on-campus classes, statewide public services and lifelong learning. The Oregon State Board of Higher Education, the statutory governing board of OUS, is composed of twelve members appointed by the Governor and confirmed by the Oregon State Senate. For additional information, go to www.ous.edu; and for today’s Board Docket materials go to: www.ous.edu/state_board/meeting/dockets