{"id":102,"date":"2017-06-30T17:01:54","date_gmt":"2017-06-30T17:01:54","guid":{"rendered":"http:\/\/blogs.oregonstate.edu\/government\/?p=102"},"modified":"2018-03-13T16:49:50","modified_gmt":"2018-03-13T16:49:50","slug":"sine-die-is-nigh","status":"publish","type":"post","link":"https:\/\/blogs.oregonstate.edu\/government\/2017\/06\/30\/sine-die-is-nigh\/","title":{"rendered":"June 2017 Update: Sine die is nigh"},"content":{"rendered":"

This issue provides an update and summary of some of the major budget decisions affecting Oregon\u2019s public universities. Last week when the Governor and House and Senate leaders announced they could not reach an agreement on revenue reform this session, both chambers started moving pell-mell for the exits, with the hope to adjourn well before the July 10 constitutional deadline. The legislature will be working through the weekend and, if necessary, over the 4th<\/sup> of July holiday.<\/p>\n

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Beware of the \u201cCSL\u201d<\/strong><\/p>\n

The budget documents produced by the Legislative Fiscal Office (LFO) use the term \u201ccontinuing service level\u201d (CSL) to indicate the level of funding needed in the next biennium to provide the same level of service delivered during the current biennium. When considering university funding, as a matter of its own policy, LFO does not fully account for increases in mandated costs such as employee health insurance (PEBB) and retirement (PERS) costs. For the last two legislative sessions, universities have sought more realistic CSL calculations. They have made some progress, but LFO\u2019s calculations of CSL still do not accurately reflect cost increases. As a result, the budget documents for the 2017-19 biennium show increases in CSL, but in reality, these increases in the level of funding are largely overtaken by cost increases. Universities have filled the gap for most education-related programs with tuition resources. But for programs that rely solely on general fund appropriations\u2013such as the OSU Statewide Public Service Programs\u2013LFO\u2019s depiction of CSL creates real budget cuts. These generally require eliminating personnel.<\/p>\n

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University Operating Budgets<\/strong><\/p>\n

On Wednesday, June 28, the Ways & Means Education Subcommittee approved an amended version of SB\u00a05524<\/a>, which provides operating funds for Oregon\u2019s seven public universities. In the coming days, the full Ways & Means Committee and both chambers are expected to approve the bill. The LFO Recommendations Document<\/a> provides details on all of the budget elements for post-secondary education, including funding for community colleges, the public universities, the OSU Statewides, other state-funded programs, the Oregon Opportunity Grant program, workforce development & education, and the Oregon Promise program\u2013sometimes referred to as \u201cfree community college.\u201d<\/p>\n

The universities entered the session with a Governor\u2019s Recommended Budget (GRB) for the Public University Support Fund\u2013the primary account used to support education activities\u2013that held them at the same level of funding as was provided during the current biennium: $667\u00a0million. The universities united with students and other stakeholders in seeking at least a $100\u00a0million increase. As approved by the subcommittee, SB\u00a05524 provides $736\u00a0million, a $70\u00a0million increase over the GRB.<\/p>\n

When compared to the trajectory in the budgets of other state agencies, the increase is remarkable and ranks among the largest increases put forward by the Ways & Means Committee. Though universities started the session well behind most other state-funded entities, the $70\u00a0million increase is a significant accomplishment, due largely to coordinated advocacy across the seven universities and the work of students and others across the state.<\/p>\n

In order to ensure that the increased funding will go to rolling back tuition increases, a budget note in the bill requires tuition reductions at those universities that sought, and received, HECC approval for resident undergraduate tuition increases greater than 5% for the 2017-18 academic year. As provided in SB 5524, changes in tuition are as follows:<\/p>\n