Gov. John Kitzhaber has released his second budget proposal for the 2001-2003 biennium which includes a $45 million funding increase for the Oregon University System and a $7.5 million increase for state services.
The latest proposal was well-received by OUS officials, who had been anticipating a funding drought after Kitzhaber’s first budget proposal, which lowered the system’s funding by nearly $100 million.
In a statement released along with the proposal, Kitzhaber said he was more satisfied with the latest budget.
“I believe this is a significantly improved budget over what I was able to present in my original budget in December,” he said.
Kitzhaber restructured the budget by paying the federal retiree debt early and freeing up over $110 million, and by transferring Medicare dollars. In addition to the increase in higher education funding, Oregon State Police and human services also received more funds.
“I believe this budget strategy is prudent and will be well supported by Oregonians,” Kitzhaber said. “It allows us, even in the face of a revenue decline, to maintain services such as nursing home care and highway patrol.”
The proposal has received some criticism because Kitzhaber’s increased spending may decrease the chance Oregonians will receive kicker rebate checks in the mail.
OUS officials and University administrators were attending a State Board of Education meeting in Portland when the budget was released and were not available for direct comment. In statements released later, however, they expressed their gratitude for Kitzhaber’s new funding plan.
“The governor shares our vision for access for Oregonians,” University President Dave Frohnmayer said. “I hope this commitment to restoring our budget is just a beginning.”
OUS Chancellor Joe Cox said he was encouraged by the bipartisan support for higher education.
But Rep. Betsy Close, R-Albany, who serves on the Ways and Means Subcommittee on Education, said while she was pleased to see the governor restoring some of his previous cuts, she believed he could have directed more money toward opportunity grants.
She also said she doubted whether placing the kicker in question is a good idea at this stage in the budget process.
“The concern is once you open that door, it’s a raid on kicker money,” she said.
The kicker is an income tax surplus refund that may be issued by the state department of revenue.
A fellow member on the education subcommittee, Rep. Kurt Schrader, D-Canby, said the governor’s budget proposal opens up more opportunities in the budget.
“It gives us a breather to continue to work at the budget,” he said.
He said there is a good sense of bipartisanship in Salem at the moment, which is helping to move the budget along. Currently, state legislators are creating lists of state programs that will be given budget “add backs” as more funding is discovered, Schrader said.
But higher education is covered, he said.
“If we follow the governor’s recommendations [higher education] is taken care of,” Schrader said. “Christmas came early.”