PSU Board of Trustees agrees to reduce tuition increase if state increases funding

The Portland State University Board of Trustees voted unanimously Tuesday to reduce a planned tuition increase next fall if the Legislature and governor agree to increase state funding for higher education for the next two years.

The board held a special meeting to formalize a promise made on April 11, when the trustees approved an 8.9 percent increase, or $693, in tuition for full-time resident undergraduate students. Under the resolution approved Tuesday, the tuition increase would be reduced by 1 percent for every $20 million in increased state funding over the next two years for Oregon’s seven public universities.

The resolution “gives clarity and certainty” to efforts to seek additional funding for higher education, said PSU President Wim Wiewel.

Earlier this month, the Higher Education Coordinating Commission narrowly rejected proposals by PSU and University of Oregon to raise tuition beyond 5 percent, with commissioners saying they had concerns about the increase and wanted more information from the universities. Under state law, the HECC must approve any annual tuition increase that exceeds 5 percent.

The HECC is scheduled to reconvene Thursday in Salem to reconsider the tuition request from PSU.

Portland State faces at $20 million shortfall in the 2017-18 academic year, and the proposed tuition increase would raise about $11 million. That still leaves $9 million to be cut from PSU’s  budget. Without the 8.9 percent tuition increase, the cuts would grow to $14 million. University officials won’t determine specifics on cuts until the tuition and budget are finalized.

The tuition increase follows budget recommendation by Gov. Kate Brown for no increase in state support for higher education in the next two years despite increases in pension costs, health care benefits and wages. State lawmakers have been struggling to balance the state budget over the next two years and unable to reach an agreement on new revenue or cuts or a combination of both.