2005-2007 Governor’s Recommended Budget

for the Oregon University System

December 2004

Highlights

Ø The Governor’s Recommended Budget will enable OUS universities to enroll more than 80,000 students per year in 2005-2007.

Ø The budget makes a substantial investment in university facilities, including new construction in Medford (with Rogue Community College), and significant repair and maintenance at each campus.

Ø The budget makes affordability a hallmark by more than doubling state funding for the Oregon Opportunity Grant (in the Oregon Student Assistance Commission budget).

Ø The budget allows universities to keep tuition increases well within single digits each year.

Ø The budget invests directly in the commercialization of the intellectual capital developed by our campus research enterprise (in Oregon Economic and Community Development Department budget for higher education).

Overview

n The total amount of State General Funds for the Oregon University System (OUS) in the Governor’s 2005-2007 Recommended Budget (GRB) is $685.4 million, including Capital Construction and debt service, a 2.1% increase over the $671.3 in General Fund in 2003-2005. The budget supports the Board’s key initiatives for postsecondary education, which are focused on the over-arching goals of Access, Affordability, Excellence, and Economic Development.

n The Education and General portion of the GRB (funds used for campuses and Chancellor’s Office, and excluding Statewide Public Service Programs, capital construction and debt service) is $549 million, an increase of $4.6 million or 1.1% over the 2003-2005 biennium.

n The increase in State General Funds will not be sufficient to carry forward the current level of programs from the 2003-2005 biennium. The Essential Budget Level for 2005-2007 is $581.5 million for the Education & General Operating Budget, or $32.6 million more than the GRB. The additional funding is needed to cover cost increases in areas such as PERS and health insurance.

n Policy package requests from the State Board of Higher Education funded in the GRB total $3.4 million, with $2.2 million for the More Better Faster data system to ease 2-year to 4-year college transfer movement for students; and $1 million to reflect the importance of funding faculty recruitment and retention.

n For the OUS Capital Construction budget, the GRB for 2005-07 totals more than $300 million, a combination of $17.2 million in General Fund amounts (an increase of 50% over the $11.5 million in GF provided in the 2003-2005 biennium), various bond funding, and private donations. This portion of the GRB represents a significant investment in the protection of Oregon’s campus assets, student access, and in Oregon’s economy through job creation.

n Statewide public service programs offered through Oregon State University – which include the Agricultural Experiment Station, Extension Services, and the Forest Research Laboratory – totaled $89.1 million in General Funds in the GRB, a reduction of $1.2 million or 1.3% from the 2003-05 Legislatively Approved Budget and a 7.7% reduction from the Essential Budget Level.

n The Total Budget for OUS in the Governor’s 2005-2007 Recommended Budget (GRB) for the Oregon University System is $4.5 billion, with $685.4 million in State General Funds. The budget also includes $1.4 billion in Other Funds Limited (including nearly $1 billion in tuition and fees and $337 million in capital funding). Another $2.4 billion in Non-Limited Funds from gifts, grants, contracts and self-support activities is included, although these funds generally cannot be used for instruction or general campus support.

n The Capital Construction portion of the GRB includes funding for Capital repair ($23.6 million); deferred maintenance, tier 1 and 2 projects ($47.3 million); the OSU Power Plant ($55 million); the Southern Oregon University (with Rogue Community College) site building in Medford ($11.8 million); Self-supported projects by campuses ($149.1 million); and Gift-funded projects ($68 million).

n An estimated 3,200 jobs will be created in Oregon through these Capital Construction projects over the life of the projects (using an industry standard of 9 jobs per million dollars).

Oregon University System Summary: Governor’s Recommended Budget for 2005-2007
In millions of dollars	General Fund	Other Funds Limited	Total Limited Funds	Non-Limited Funds	Total All Funds
2003-2005 Legislatively Approved Budget	$671.3	$1,488.4	$2,159.7	$2,087.3	$4,247.0
2005-07 Essential Budget Level	$721.4	$1,091.9	$1,813.3	$2,404.2	$4,217.5
Governor’s Rec. Budget	$685.4	$1,420.4	$2,105.9	$2,425.6	$4,531.5
Change from EBL	-5.0%	30.1%	16.1%	0.9%	7.4%
Change from 2003-2005 LAB	2.1%	-4.6%	-2.5%	16.2%	6.7%
Includes Debt Service, Capital Construction, Lottery

Office of the Chancellor n 503-725-5714 n www.ous.edu

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