by Harry Esteve
June 16th 2016
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The Portland State Board of Trustees approved a one-year operating budget of $565 million on Thursday.
The budget covers anticipated expenses and starts to rebuild the university’s reserves, said the board’s finance committee chair Rick Miller.
Reserves are required to allow the university to remain solvent in the case of a natural disaster or other emergency. The goal is a $40 million reserve fund within four to five years, Miller said.
“Overall, the university is in good shape,” Miller said. He cautioned, however, that enrollment declines or changes in the in-state, out-of-state student mix could affect revenue projections on which the budget is based.
Board members also discussed ways to ensure that budget aligns with PSU’s new strategic plan. “Linkage of budget to strategic plan is something that often doesn’t happen,” said board vice chair Tom Imeson. “I think it’s a really good thing for us to do.”
Before the budget approval, the board heard from a group of students who asked for an immediate increase in the minimum wage to $15 an hour at PSU. In response to a question from a board member, President Wim Wiewel said the university is ramping up the minimum wage according to a new state law that boosts the wage to $14.75 an hour by 2022.