September 21, 2003

Summary of

OUS Board Meetings

9/19/03

at Portland State University

I attended the Budget and Finance Committee meeting, the System Strategic Planning Committee meeting, and the Full Board meeting. I did not attend the Board Work Session held prior to the Committee meetings. Since the Full Board considers most of what transpired at each committee meeting, I will review the proceedings in a single report.

Work Session (prior to the public committee meetings) - the Board received an investment report and a Budget Summary for the 2003-05 Operating Budget. My reading of this report indicates that OUS Legislatively Adopted Budget (LAB) for the Higher Education General Fund for 03-05 is $62.7 million below the 01-03 final budget. After adding student tuition increases and lottery funds, the 03-05 total budget is $373.4 million above the 01-03 amount. Any analysis of these amounts is complex, and caution is urged in interpreting the effects they may or may not have. My understanding of them is especially tentative, so read with care. Specific Budget Notes include, among others:

1. Hiring - “The Department is directed, in the execution of this budget, to avoid filling vacant positions wherever plausible.”

2. Compensation - “The adopted budget does not support any increases in salaries, wages, or benefits for the employees of the Department during the 2003-05 biennium, and the Ways and Means Subcommittee expects no such increases to be awarded.”

3. Fee Remissions - “The adopted budget supports programmatic fee remissions equal to 8 percent of gross tuition revenue. The Subcommittee expects the Department to limit programmatic fee remissions to no more than 8 percent of gross tuition revenue.”

Also in the Work Session, an analysis of the expected impact of the Flexibility Initiatives which were passed by the legislature was presented. I have included a very brief summary of the staff analysis.

• Exemption of OUS from oversight of the Office of Degree Authorization - This shifts burden of proof to the private institution to prove detrimental impact.

• Permission for OUS to hire attorneys to perform legal services without Department of Justice approval.

• Permission for OUS to dispose property without permission from DAS, permitting better management of surplus property.

• Permits OUS to buy and sell information technology without DAS approval, and permits Board to delegate these powers to institutions.

• Permits OUS to withdraw from PEBB without meeting the test of “ the same level of benefits at a lower cost”.

• Permits interest on donated funds to be retained by OUS.

• Limits independent college student Opportunity Grant awards to no more than that awarded to student attending OUS institutions.

Budget and Finance Committee

• Permission was granted to permit Jefferson Public Radio at SOU to lease ground for their new building.

• A format correction was approved in the Optional Retirement Plan Amendment.

A calendar for the B&F Committee was presented, containing a month-by-month plan including December - Annual Summer Session Fee Book,

February ‘04 - development of 05-07 Legislative Concepts, a note that the possible referendum on taxes would be in early February ‘04, and receipt of ‘05-’07 budget instructions from DAS.

April - Discussion of development of ‘05-’07 Operating Budget and Capital Budget requests.

July - Approval of ‘05-’07 Operating Budget and Capital Budget.

September - Submit Biennial Budget Request to Governor.

In response to a question, it was reported that overall, 36% of the cost of Oregon Higher Education comes from the state, and 64% from tuition.

System Strategic Planning Committee

• Three new programs approved at OSU in Earth Science, Education, and Molecular and Cellular Biology, and a collaborative Reading Endorsement sponsored by five OUS universities was approved. In response to a question from Director Kerry Barnett, Shirley Clark said that these programs helped streamline course offerings and were in the spirit of keeping costs down and maintaining quality in the system.

• Kerry Barnett suggested that the Governor should be invited to attend an OUS Board meeting, and goals for such a meeting were discussed (marketing plan, financial aid, affordability, mission differentiation, K-12 relationships were mentioned as possible discussion items with the governor).

• At future SSP meetings, individual university presidents will be asked to present specific goals and missions of their universities, focusing on challenges and issues rather than promotional “dog and pony” presentations. OIT will lead off these discussions in October, the U of O in November.

Full Board Meeting

• IFS and OSA - After brief reports from the Board President and the Chancellor, and introduction of new Board member Henry Lorenzen, IFS and the OSA made their traditional remarks. The OSA report was given by the new Oregon Student Association President, Andy Saultz from OSU. The IFS report is included elsewhere in its entirety, and the OSA report emphasized the students’ position that access should have priority in setting goals instead of quality, or at least quality should not be maintained at the expense of limiting student participation in higher education.

• Jefferson Public Radio - Ron Kramer and Steve Nelson thanked the Board and told of the importance, wide appeal, and contribution of JPR to higher education in Southern Oregon.

• Dick Knight from INTEL narrated a Powerpoint presentation on the Pre-College Science Fair in Oregon, citing continuing growth, interest, and national success of our students.

• Report from Joint Boards Working Group (with K-12) indicates continuing joint discussions and promise of future cooperation and joint activities.

• Leslie Lehman reported on the progress of the Oregon College Savings Plan, noting that the Governor had declared September as College Savings Month.

• Reports from Oregon Council of Knowledge and Economic Development, the EOU Presidential Search, and Legislative Activities were deferred due to the lack of time.

On a personal note, I was able to have nice conversations with Ed Ray, the new President of OSU, with Henry Lorenzen, the newest OUS Board member, and confirmed the appearance of Chancellor Richard Jarvis and President Elisabeth Zinser at the IFS October meeting.

Bill Danley, President

IFS