{"id":64,"date":"2016-12-03T00:37:12","date_gmt":"2016-12-03T00:37:12","guid":{"rendered":"http:\/\/blogs.oregonstate.edu\/government\/?p=64"},"modified":"2018-03-13T16:55:01","modified_gmt":"2018-03-13T16:55:01","slug":"2017-19-grb","status":"publish","type":"post","link":"https:\/\/blogs.oregonstate.edu\/government\/2016\/12\/03\/2017-19-grb\/","title":{"rendered":"Governor Brown releases her recommended budget for the 2017-19 biennium"},"content":{"rendered":"

Governor Brown issued her recommended budget (GRB) for the 2017-19 biennium yesterday.\u00a0 Facing a projected state budget shortfall of at least $1.4\u00a0billion compounded by rising personnel and health care costs, the GRB includes many difficult decisions.\u00a0 This update provides a summary of the major elements affecting higher education in Oregon. \u00a0To review the entire budget document:\u00a0 http:\/\/www.oregon.gov\/das\/Financial\/Documents\/2017-19_gb.pdf<\/a><\/p>\n

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In short, despite increasing costs driven by state-mandated employee health and retirement benefit programs, the GRB provides no programmatic increases<\/em> for the state\u2019s seven universities.\u00a0 The university presidents, who had sought at least a $100 million increase in order to meet current service levels while keeping tuition increases at a manageable level, issued the following statement:<\/p>\n

\u201cOregon\u2019s public universities commend Governor Brown for prioritizing students and higher education in her recommended budget. Ensuring a college degree is accessible to every Oregonian without taking on a lifetime of debt is how our state will remain vibrant and competitive. With limited resources, Governor Brown took great strides to protect students. The investments outlined in her budget will mean Oregon does not balance its books at the expense of those who are most vulnerable.<\/p>\n

\u201cAs the Legislature weighs difficult budget choices, we urge lawmakers to increase operating funds beyond the Governor\u2019s budget. By doing so, every campus can keep tuition at a manageable level for the next two years and maintain vital support services that keep students on track to graduate. If we want to enable more Oregonians to earn college degrees at an affordable level of tuition, additional resources will be needed.<\/p>\n

\u201cPublic universities are educating the workforce and leaders of\u00a0tomorrow, and we act as incubators of ideas and solutions that can change the world. Oregon must protect students by recognizing that higher education is a fundamental necessity for a robust economy and a living wage. We stand as partners with the state, ready to work with the Legislature and the Governor to address the challenges that lie ahead.\u201d<\/p>\n

In comparison, K-12 State School Fund received a 9% increase in funding, for a total of $8 billion.\u00a0 This figure is approximately $500 million below what the Oregon School Boards Association says local schools need to maintain current service levels.<\/p>\n

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The Public University Support Fund (PUSF)<\/strong><\/p>\n

The PUSF is funded at the 2015 Legislatively Approved Budget (LAB) level of $667.3 million.\u00a0 Flat funding when costs are increasing means that universities will need to turn to tuition increases, personnel reductions, service cuts, and other actions to balance their budgets. The GRB was a significant improvement over Department of Administrative Services (DAS) internally driven proposals that would have restricted university access to general funds to support retirement and health insurance cost increases.\u00a0 The Governor sought to shield public universities and students from taking a disproportionate cut, but since nearly 70% of the academic personal costs are born by tuition revenues, 70% of those cost increases will be covered by tuition increases.<\/p>\n

The university presidents had sought to insulate students from these cost increases with their request for at least a $100\u00a0million general fund increase, which would have driven the PUSF to $765 million.\u00a0 Now it falls to the legislature to determine whether or how this gap can be filled.\u00a0 Legislators initially convene in January for organizational purposes, and then go into full business mode the first week of February.<\/p>\n

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OSU Statewide Public Service Programs \u2013 Agricultural Experiment Station, Extension Service, and Forest Research Laboratory<\/strong><\/p>\n

The GRB proposes no increases for the OSU Statewide Public Service Programs \u2013 the Extension Service, Agricultural Experiment Station, and Forest Research Laboratory, known as the \u201cOSU Statewides.\u201d\u00a0 This spring, the OSU Board of Trustees sought a $9.4\u00a0million continued service level increase for these programs \u2013 simply the amount of funding that would be needed to provide the same level of service next biennium as what was provided during the current biennium.<\/p>\n

Last session, after a year of activism by a broad coalition of advocates, the legislature approved a $14\u00a0million increase for these programs.\u00a0 The resulting $118\u00a0million funding level enabled OSU to hire some 40 new research and extension positions across the state to address significant challenges facing Oregon family farmers, low income families, and Oregon\u2019s natural resources enterprises.\u00a0 This was a monumental step reversing a 15-year decline when these vital programs were forced to eliminate positions that served a diversity of Oregonians in all 36 counties.<\/p>\n

The GRB will have the effect of eliminating nearly 70 percent of the programmatic increases the legislature approved last session.\u00a0 Because the vast majority of these funds are used to cover personnel costs, the primary tool the Statewides have to manage their costs during budget reductions is through the elimination of positions.<\/p>\n

While academic programs at OSU rely on state general funds, they also are able to turn to tuition when the legislature cuts their funding.\u00a0 The Statewides do not have access to tuition revenues and so feel the full impact of state funding reductions.\u00a0 However, because many of the Statewides\u2019 positions are \u201cshared appointments\u201d which have both teaching and research responsibilities, there will also be impacts on the university\u2019s education enterprise.\u00a0 The elimination of research positions also inhibits OSU\u2019s ability to compete for federal funding.\u00a0 OSU estimates that every state dollar invested in the OSU Statewides leverages nearly $10 in economic benefits to the state.\u00a0 The Governor\u2019s budget puts these economic returns at significant risk.<\/p>\n

It is too early to identify the precise number and location of the positions that could be eliminated as a result of flat-funding the Statewides.\u00a0 The first step available to program managers is to leave position vacancies un-filled when they occur.\u00a0 Managing through attrition is not a strategic approach to addressing Oregon\u2019s challenges in the coming biennium, but it is the only practicable alternative currently open to the Statewides.<\/p>\n

In order to maintain the same level of service for the Statewides the legislature will need to find $9.4\u00a0million in general fund resources.\u00a0 OSU is committed to work with legislators and the broad coalition of stakeholders who have supported these programs in the past to find practicable solutions for addressing the funding challenges facing the Statewides in the 2017-19 biennium.<\/p>\n

Outdoor School:<\/strong>\u00a0 Due to the passage of Measure 99, which established and funded \u201cOutdoor School\u201d with $44\u00a0million in Lottery Funds, the GRB also includes a $44\u00a0million increase to the OSU Extension Service which, under the measure, is responsible for administering the funds and developing the curriculum for the program.\u00a0 OSU has estimated that about $1.6\u00a0million of these funds will be needed to meet Extension\u2019s responsibilities under this program.\u00a0 Despite the ballot measure provisions, the legislature will ultimately make the final funding decisions, both for the amount of lottery funding that will be provided to local school districts and to Extension to administer the program.<\/p>\n

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Other Highlights in the GRB<\/strong><\/p>\n

Sports Lottery (Title IX Scholarships):\u00a0 <\/strong>The Governor eliminated all funding for this program which under state statutes is supposed to provide 1% (approximately $12.5 million in 2017-19) of the economic development fund from the state lottery fund for scholarships for athletes and graduate students. Most of the scholarships are used to meet Title IX requirements for women athletes.\u00a0 In previous legislative sessions (including 2015) legislators have capped the funding for this program at $8.2 million.\u00a0 Previous Governors have also recommended eliminating funding for this program, but have faced legislative opposition.\u00a0 The seven public universities will mount another campaign in 2017 to recover these funds.\u00a0 During the current biennium, OSU received $1 million.<\/p>\n

Public University State Programs\/ETIC:\u00a0 <\/strong>The GRB essentially provides flat funding for multiple state programs administered by the universities.\u00a0 Funding for programs that are administered or located at OSU include:<\/p>\n