After wrangling over competing budget-cutting proposals, the State Board of Higher Education worked out a compromise Tuesday that retains the structure of the Oregon State University-Cascades Campus in Bend but reduces its funding by $1.8 million.
The board decided to support member Tom Imeson’s compromise plan, which attempts to balance the support of academic programs and funding issues with the Cascades campus.
Imeson’s proposal maintains planned budget cuts and moves the unused $1.8 million to be allocated by Oregon University System Chancellor Joe Cox at the board’s discretion. Cox has been ordered by the board to place the money toward “part of our effort toward overall budget reduction” or “(reducing) impact on other budget initiatives,” the proposal said.
In October, Gov. John Kitzhaber mandated that all state agencies submit budget reduction plans to offset a projected $290 million shortfall in state revenues. The plans will lay the groundwork for a special legislative session to rebalance the state’s biennial budget. The governor instructed state agencies to propose reduction plans of up to 10 percent, by 2 percent increments.
State agencies were given until Friday to submit plans, but the board was given an extension to Wednesday because members could not complete work on the plan until then.
Board member Erin Watari, who voted for Imeson’s proposal, said it was a workable solution.
“It is a compromise that embodies what the whole board wanted,” she said.
Board members Monday defeated Cox’s original proposal because the construction of a new campus in Bend would affect existing programs at other state universities. Board members instructed Cox to create two budget-cutting proposals, the first outlining budget cuts but keeping funding for the Cascades campus intact, and the second plan directing the $7.2 million to be used for other OUS programs.
However, OUS officials told board members Tuesday that all but $1.8 million had already been spent at the Cascades campus. Imeson then drafted a compromise.
Watari said questions about the Cascades campus were not raised in time for the board to take any meaningful action. However, Tuesday’s vote should convince the state that the board has not abandoned the Cascades campus, she said.
The proposal’s 2 percent budget cut would equal a net loss of $16.7 million dollars to OUS, including $1.8 million at the University of Oregon. The 10 percent cut would exceed $80.9 million for the state system and $12.4 million for the University.
Officials noted that while proposed cuts at the University were larger than expected, they won’t break the bank.
“The net change is a little more cost to us, but not a huge amount,” University Provost John Moseley said. “I can generally support this.”
Imeson’s proposal also directs Cox to oversee the startup of the Bend campus, to “ensure that administrative overhead does not exceed the need on the ground.”
Board member Tim Young felt this addition was important to guarantee that the state does not expand the new campus while smaller universities lose state funds.
“It sends the appropriate message of ‘proceed with caution,’” Young said. “We don’t want to have a party and nobody show up.”