Legislative Update from the University of Oregon

May 23, 2002

 

The current budget picture for the state is grim with a new projected shortfall of over $900 million.  This is due to the following:

 

 

·      Federal accelerated depreciation corporate tax break ................... - $124 million

      (Economic Stimulus bill)

·      June 2002 revenue forecast .......................................................... - $450 million  *

·      Failure of Ballot Measure 13......................................................... - $220 million

·      Caseload increases in Human Services............................................ - $33 million

      Subtotal =........................................................................................ $827 million

 

·      Restore store Governor’s Cuts after Second Special Session............ $82 million

      TOTAL =...................................................................................... $909 million

 

*Could be $400-$600 million

 

 

Given the new numbers, it becomes more imperative to discuss revenue sources very directly.  The cuts anticipated in this level of a budget crisis are starting to approach the extreme fiscal cuts and recession of the early 1980s.

 

Another concern is that legislators may choose to raid a $100 million salary and benefits package that was approved during the regular session.  Of this amount, 21 percent was for higher education.  These funds -- $3.5 million at the University of Oregon for one year, or $7.1 million over the biennium – are already committed.  Raiding these funds would mean program cuts.

 

A Special Session is tentatively planned for June 10, but there are rumors that the Governor’s office is not inclined to schedule a session at this time since there is no legislative budget deal agreed upon.  The only discussions currently happening are between the House and Senate leaders of both parties – Senate President Gene Derfler (R-Salem), Senate Majority Leader  David Nelson (R-Pendleton), Senate Democratic Leader Kate Brown (D-Portland), House Speaker Mark Simmons (R-Elgin), House Majority Leader Karen Minnis (R-Wood Village), House Democratic Leader Deborah Kafoury (D-Portland), Ways and Means Co-Chair Ben Westlund (R-Bend), Ways and Means Co-Chair Lenn Hannon (R-Ashland), and chief Democratic budget negotiator Peter Courtney (D-Salem).  Their discussions thus far are reportedly congenial but non-productive.

 

The alumni, faculty, students, staff, and friends of the University of Oregon are urged to write, call and email legislators urging the following: 

 

·      Do not raid the salary and benefits package in the emergency fund. Higher education represents 21 percent of the $100 million package and the funds are already committed.  If the legislature raids this package, the UO will face additional cuts of $2.5 M.  If the legislature raids the salary package they will be making program cuts, not salary reductions.

 

·      Consider all revenue options - the budget should not be balanced with additional cuts.

 

·      Protect higher education from additional cuts.  Universities cannot afford deeper cuts due to the cuts already taken and the tremendous increase in enrollment.  State support for higher education is at an all time low on a per student basis.  Higher education must be given the flexibility to raise tuition to offset the cuts and deal with the enrollment surge on our campuses.

 

·      Protect core undergraduate and graduate instruction funding, campus public services and research funding.