News Release June 4, 2004
Office of the Chancellor P.O. Box 751 Portland, OR 97207 PHONE (503) 725-5700 FAX (503) 725-5709 www.ous.edu |
Contact:
Di Saunders, Cell: 503-807-5539 (today); Office: 503-725-5714
Board of Higher Ed Approves 2004-05
Tuition with Exceptions
Concern over the impact of increases on students leads
Board to amend fee book recommendations
PORTLAND, May 7 – The State Board of Higher Education (the
“Board”) met yesterday and today at Southern Oregon University in
Ashland, with the primary agenda item discussed being proposed tuition
increases on the campuses for the 2004-05 academic year.
Tuition Proposals There was much discussion among Board members, and testimony
by students and OUS presidents, on the proposed tuition increases and changes
in tuition plateaus and the effects on campuses and individual students. Board
members felt that there is a need to provide some moderation and predictability
in the rates being charged to students. Students expressed concerns that
successive years of tuition increases are burdening current students and
lowering access for the state’s neediest students. Nancy Heiligman
presented an overview of the proposed campus tuition rates for 2004-05. She
noted that the proposed rates are below those approved by the Board last July
for 2004-05; and that the revenues raised by these rates have been reviewed by
the Legislative Fiscal Office, and are below the Legislative limit, with no
increases being recommended in resource fees due to those limits. Heiligman
noted that campuses have conferred with student groups before submitting their
proposals, and the OUS also held a public hearing for comment on increases on
May 11th.
The Board approved the proposed tuition rates at 6 of the 7
campuses, and with an important exception addressed to ease burden for
students. Vice president Richmond suggested looking at savings in the
Chancellor’s Office and possibly any excessive fund balances that might
be used to lower the proposed increases. Director Blair suggested that where increases
will be larger than 15% for particular cohorts of students, campuses should
review how they can cushion the impact on these students through the provision
of “refunds”. The Governor asked that the Board and
Chancellor’s Office (CO) work together to make a decision based on monies
released from the CO reorganization and fund balances at the universities, and
develop a proposal with presidents to reduce sticker shock for students. Based
on Western Oregon University’s higher than standard current fund balances,
the Board did not approve tuition increases for this campus, but did approve
the proposed small fee increases.
|
Approved Oregon University
System 2004-05 Tuition and Fee Rates Per Term For undergraduate residents
based on 15 hours |
|||
|
OUS University |
2004-05
per term tuition |
Increase per term over 2003-04 |
Percent of increase Over 2003-04 |
|
Eastern Oregon University |
$1,836 |
$137. |
8% |
|
Oregon Institute of Technology |
$1,815 |
$334. |
23% |
|
Oregon State University |
$1,773 |
$125. |
8% |
|
Portland State University |
$1,707 |
$281. |
19% |
|
Southern Oregon University |
$1,655 |
$271. |
19% |
|
University of Oregon |
$1,890 |
$227. |
12% |
|
Western Oregon University |
$1,444 |
*$9. |
0.00% |
|
Average OUS increase |
|
|
12.7% |
|
*For WOU, there is no tuition increase for 2004-05, and an
increase in fees of $9 per term. |
|||
Fund Balances Director Blair summarized the review of a policy proposal on
fund balances within the campuses and the Chancellor’s Office budgeted
operations. After much discussion, members agreed that they need to look
closely at fund balances that seem excessive, beyond the 5-15% standard range
for universities. Governor Kulongoski and vice president Richmond said that
this will be looked at closely by the Legislature and was an issue of
credibility for the campuses. The Board agreed that WOU would work closely with
the Chancellor’s Office and the Board’s Finance Committee to reduce
their 29% fund balance to the 5-15% range so that an appropriate plan could be
developed to meet standards. The System audit function will also review WOU
finances to determine how the fund balance became so high and to assist in
developing a sound budget strategy for it.
Chancellor’s Office Review Board vice president Geri Richmond
and member Henry Lorenzen reported on further opportunities for reduction in
the on-going Chancellor’s Office (CO) reorganization; these reductions
represent annual recurring savings related to increasing efficiencies and
moving towards a policy-oriented mission. In addition to the $1.1 million in
reductions already taken through elimination of the Academic Affairs division,
additional reductions of $1.9 million were approved by the Board. These
included: (1) $1 million through the realignment of the operating budget and
fund balances of the Oregon Center for Advanced Technology Education (OCATE),
shifting from System oversight to integration into Portland State University;
(2) $500,000, or 15% of the Chancellor’s Office Information Technology
division based on increased efficiencies through a merger with Oregon State
University; these cuts will not occur for a year, but CO fund balances will be
used in the interim to achieve immediate savings; and (3) $400,000 through
reductions in the Controller’s Office, Budget Management and Human
Resources. Vice president Richmond noted that the reductions in the
Chancellor’s Office now total $3 million, $1.1 million of which will be
used to assist campuses by reducing their Measure 30 cuts; $500,000 to be used
as a “fighting fund” to retain top faculty under specific
circumstances; and the remaining $1.5 million to be used by the Board to
achieve the various initiatives being developed by the working groups.
In a related item, the Board approved OUS’s request to
go to the Emergency Board with a request to create a “fighting
fund” that would provide salary adjustments to selected meritorious
faculty who might otherwise leave the System. Because of the freeze on faculty
salaries, universities are not able to increase salaries for key faculty who
are of high value to the institution and students and whom the campus has the
potential to lose to another institution. The fighting fund would enable
Oregon’s public universities to retain some of these faculty. Adjustments
will be funded from the savings realized through the reorganization of the
Chancellor’s Office.
ASET Initiative Director Tim Nesbitt provided a review to
date on the progress of the development of the Access Scholarships for
Education Trust, or ASET, program. He noted that there remains an affordability
gap in the state for many low- and middle-income families in Oregon. The Access
and Affordability Working Group, which is leading the Board’s effort to
develop ASET, has worked with a diverse group of 2- and 4-year colleges and
universities to work through development of the program, using the best
elements of the Federal Pell Grant and the current Oregon Opportunity Grant as
models for the program guidelines. Eligibility for the program would be based
on family income and assessment of certain assets; and eligibility would be
more of a slope versus a strict cut off, thereby allowing more middle-income
families to gain some relief. Nesbitt noted that Oregon needs to double or
triple its efforts in need-based aid just to match other states. He said that
this is both a short- and a long-term effort in trying to increase funding for
need-based aid in the state. Longer term would be the development of a
constitutionally-protected endowment that would ensure that needy students can
access these grants even in times of economic downturn.
Governor Kulongoski said that Oregon’s future is
dependent on its investment in higher education, which will provide jobs for
citizens and a stronger economy. He noted that higher education is becoming the
benefit of those with means and wealth and the state is losing out on the
skills of those who don’t have the financial ability to go to college.
Increasing need-based financial aid will give them the ability to unlock the
door to postsecondary education. The Board adopted the report on ASET, agreeing
to the program design and constitutional protection. Members also asked the
working group to look at how students can be helped on the back end with their
student loan debt.
Capital Construction Budgets Four campuses presented proposed
2005-07 capital construction budgets to the Board. EOU proposed the
construction of a new library and information center. UO proposed five new
projects – a Research and Laboratory expansion, a new education building
and education complex alterations, an Integrated Science Complex Phase 2, a
Teaching and Performance Facilities renovation, and Gilbert Hall expansion and
alterations phase 3, totaling $124 million to be achieved through public and
private funds. OIT proposed four projects, the Center for Health Professions, a
library addition and renovation, a net-zero energy residence hall, and
renovation of the physical education building, totaling $40 million and funded
through G-bonds, F-bonds and student building fees. OSU proposed five projects
– a new utility plant, the Pauling Research & Education Building,
Snell Hall replacement, COAS Expedition Support Center, and Multi-purpose
Animal Sciences Teaching Facility – totalling $87.5 million to be gained
through XG-bonds and private funds. Director Blair said that this was the
second and final round of presentations from the campuses on their capital
construction requests. At the next Board meeting members will review a compiled
and prioritized list of all campus requests and begin the process of making
final decisions on a list to present to the Governor in the fall.