State Representative Carolyn Oakley presented a House perspective on higher education. In her remarks she stressed that they have added to the budget funds to save programs associated with the School of Veterinary Medicine at OSU. She stated that the two percent "kicker" is going to be refunded to taxpayers. She also discussed the Higher Education Efficiency Act.
Chancellor Joe Cox described his efforts to reduce bureaucracy in his office, including moving decision-making "out and down," with an appropriate responsibility shift to accomplish what needs to be done. He has reduced his staff from 180 to 140; 90 are associated with the budget/accounting processes in the facilities located at OSU. Most of the rest are in Eugene, although a small staff is maintained in Salem and Portland. He emphasized the need to effectively communicate the strengths of our universities and colleges to the people of Oregon. Finally, he reiterated the OSSHE priorities for this legislative session: faculty salaries, passage of the Higher Education Efficiency Act, and controlling tuition costs.
In his introduction of Mark Nelson, Executive Director of AOF, and Grattan Kerans, Director of Government Relations for OSSHE, Loyde Hales made reference to the AAUP 1994-95 salary study; salaries and compensation of our faculty ranks near the bottom nationally. They discussed the legislative challenges related to higher education. Grattan Kerans graphically detailed the economic predicament by placing the higher education budget in a box surrounded by four major barriers: a Governor's budget that reduces state support for higher education by 14%; a political leadership that promises "no new taxes"; a determination to refund the "tax surplus"; and dedicating revenues to one part (i.e., K-12) of the education process. The "kicker" monies would provide substantial relief but will probably be returned to the corporations from whence they came; many of these corporations are not even headquartered in Oregon. However, Kerans felt that his efforts, along with that of faculty and student leaders, had turned the legislators around so that they "weren't hostile to higher education."
Mark Nelson said that he believed that the Higher Education Efficiency Act will pass; if not, the higher education deficit will be even worse -- 12 to 18 million dollars. Oregon has the lowest effective tax rate in the 13 wester states. Of the 76,000 corporations in Oregon pay taxes, only 20% pay taxes. Only one more vote is needed to block the bill that would bar state employees from effectively participating in the collective bargaining process.
The Governor's Chief-of-Staff, Bill Wyatt, discussed the Governor's commitment to responsible financial governance and explained why Governor Kitzhaber was going to veto the K-12 education budget. The bill was seen as inadequate for education in general. More important, without the revenue to support the budget submitted, other important aspects of education within the State, including higher education, would be left seriously under funded.
State Senator Cliff Trow said: providing "adequate and decent" budgets are part of the State's legislative responsibility. In supporting the Governor's planned veto, he said that the Legislature's school budget, even with the increase over the Governor's recommendation, failed the adequacy test; however, it would also result in other state budgets failing to meet both the adequacy and decency tests. Senator Trow said that the "crime in Oregon is in not using the kicker funds to allow a more adequate budget" for state agencies. Giving the "tax back to corporations who have done very well and received the major benefits from Measure 5, that's a crime." The "kicker" monies should remain in the state budget to take care of several budget deficiencies, including higher education and PERS.