by Chris Broderick
June 22nd 2017
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PSU Board of Trustees unanimously approved today a $329.5 million education and general operating budget for the fiscal year that starts July 1 based on the prospect of no additional state support beyond what the governor and lawmakers proposed months ago.
Board member Christine Vernier characterized the budget as “conservative and balanced” because it represents less than a 2 percent increase over the current year despite increasing costs in salaries and pension and health insurance benefits.
Kevin Reynolds, PSU vice president for budget and finance, said the rising costs resulted in a $20 million shortfall that is being covered by a tuition increase that will raise about $11 million and cuts and savings totaling $9 million.
Trustees voted in April to increase tuition for full-time resident undergraduate students by 8.9 percent, or $693, next fall. That increase was approved last month by the state Higher Education Coordinating Commission as necessary to avoid deeper cuts in programs and student support.
Reynolds said the rest of the shortfall will be covered by not filling vacant administrative and instructional positions next year, setting aside less money in reserves and projecting $1.5 million in revenue from an expected enrollment increase in the fall. Because enrollment won’t be known until that time, the $1.5 million may not materialize if student numbers go below projections, which would require adjusting the budget accordingly.
The Legislature is expected to wrap up in early July and pass a state budget before adjournment. Gov. Kate Brown earlier recommended $667 million allocated to Oregon’s seven public universities in the next two years.
If the allocation to PSU and the other universities ends up higher, the tuition increase would be reduced. Under a resolution passed by PSU’s board last month, 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.