DONATION OF REAL PROPERTY TO EASTERN OREGON UNIVERSITY'S HEAD START PROGRAM

Summary

Eastern Oregon University (EOU) seeks Board approval to authorize the Vice Chancellor of Finance and Administration to complete the transfer of .247 acres of land, located in the town of Union, Oregon, to be donated by the Community Bank of Joseph, Oregon. The proposed property transfer will provide space for the Eastern Oregon Head Start program to expand their preschool program. EOU's School of Education and Business acts as the grantee to this federal program, which serves Baker, Union, and Lake Counties.

Staff Report to the Board

Background:

EOU's Head Start program provides educational services to income eligible children and their families. The program serves three and four year old children to help them grow mentally, emotionally, and physically. The donation of the property will provide space to place a modular classroom structure recently purchased under a federal grant.

Statement of Need:

The Head Start program had recently been forced to move from its location in the basement of the Union High School because the condition of the space was not acceptable under the Federal Head Start guidelines. A $217,000 program improvement grant was awarded to purchase a modular classroom structure to be placed on the land offered by the Community Bank.

Schedule:

Closing to occur on or before February 28, 2002.

Financial Considerations:

The property is valued at $60,000; however, since the property is located off-campus, approval to accept the donation must come from the State Board of Higher Education.

Legal Considerations:

Several conditions remain open and must be satisfactorily resolved prior to settlement. These conditions include, but are not limited to, the following items:

Staff Recommendation

Staff recommends that the Executive Committee approve on behalf of the Board (as authorized at the December 21, 2001, meeting) EOU's request to accept the donation of .247 acres of land, located at 542 South College Street, Union, Oregon, from The Community Bank of Joseph, Oregon, assuming all conditions are met and that the final transfer details are agreed upon by all parties, subject to final approval by the Vice Chancellor for Finance and Administration.

COMMITTEE ACTION:

BOARD ACTION:

GOVERNOR'S PROPOSED REDUCTIONS FOR OUS

Summary

On Monday, January 7, 2002, Governor Kitzhaber identified $830 million in budget reductions that would be necessary to rebalance the 2001-2003 state budget without new revenue. In addition to rebalancing the current budget, the Governor emphasized that planning for the reductions must also take into account the need to prepare for a projected $1 billion shortfall for both the 2003-2005 and the 2005-2007 biennial budgets.

It should be emphasized that the Governor strongly qualified his presentation in the following quote from his press release:

"Let me be clear that this is not a 'Governor's Recommended Budget'," Kitzhaber said. "I believe that making this level of cuts is neither responsible nor politically possible. This should be viewed as a starting point for the debate and I will work over the next week to come up with a more balanced approach involving budget cuts, the use of existing unallocated resources as well as a consideration of new revenue." Kitzhaber targeted the week of January 14 as the probable release date for a more balanced budget plan.

In his presentation, the Governor noted that if the full $830 million were taken proportionately from all state agencies, a 7% reduction would be necessary across the board. However, he identified three program areas that represent nearly 90% of the state General Fund budget, and that, as a consequence, will likely share the major burden of his reductions. These programs are Education, Human Services, and Public Safety.

As noted in the following table, while OUS represents 6.8% of the state General Fund budget, under this plan it would absorb 10.2% of the total state budget reduction, resulting in a 10.4% cut in the 2001-2003 OUS budget.

Program Area

Percent of State General Fund Budget

Percent of Potential $830 Million State Budget Reduction

Percent of Reduction in Agency Budget

Education:

 

 

 

K-12

42.3%

36.7%

6.0%

Community Colleges

4.0%

4.6%

8.0%

OUS

6.8%

10.2%

10.4%

Human Services

21.7%

20.8%

6.6%

Public Safety

11.3%

12.4%

7.7%

All Other

14.0%

15.3%

5.3%

At the 10.4% level for OUS, the Governor's potential reductions are virtually the same as the Board's proposed reductions at the 10% level. However, should a lower than 10.4% level of reduction be applied, the Governor's cuts reorder Board reduction priorities in three program areas: 1) EEIF, 2) Statewide Public Services, and 3) Campus Public Services.

Summaries of the specific fiscal impact of the Governor's cuts on programs and the campuses are shown on the attachments that accompany this document. (Note: for a hard copy of the attachments, contact the Board's office.)

(No action necessary)