Business organizations across Oregon spoke in front of the state legislature last week, endorsing a bill that — if passed — would usher in dramatic changes to the Oregon University System.
Senate Bill 242 would greatly reduce the regulation and oversight of the seven OUS universities, giving each campus more control over a number of areas, such as budget policies and the tuition funds.
Like Oregon’s business leaders, the OUS is very much in support of the more modest provisions of SB 242.
“There is no state more micro-managed in the area of higher education than Oregon,” OUS spokesperson Diane Saunders said. “This bill is about moving from a structure of strict compliance to one of accountability and trust for Oregon’s universities.”
On Wednesday, business leaders spoke in support of the changes at a joint meeting of the Senate and House committees on higher education, and argued that the current system is excessively rigid.
“Under current law, the legislature provides very little of the OUS operating costs, but exercises near total control over university budgets, tuition policies and even programs,” Associated Oregon Industries Vice President Betsy Earls said. “This lack of autonomy limits the university’s ability to innovate, reduce costs, and find alternative forms of revenue.”
Earls said the AOI, which represents more than 1,600 local employers, thinks reduced oversight will improve the status of higher education in Oregon, which, they argue, will eventually lead to a more capable applicant pool for businesses.
Two other organizations, the Oregon Restaurant and Lodging Association and the Oregon Business Association, echoed these thoughts. They think it is an integral part of raising per capita income, producing entrepreneurs and qualified workers and pulling the state out of the recession.
The main aim of the bill would be to end the status of the OUS as a state agency and transform it into an independent system much like each of the state’s 17 community colleges.
The bill would also create the Higher Education Coordinating Commission, a 15-member group designed to foster cooperation and efficiency between the OUS and colleges.
SB 242 is different from University President Richard Lariviere’s partnership plan, which plans to sever the University from the OUS and the Oregon State Board of Higher Education.
Lariviere’s plan would create an entirely separate — and local — operating board. This proposal is also currently moving through the legislature, but is exclusive to the University of Oregon.
One of the most important changes endorsed by the OUS is control over tuition revenue.
Saunders said Oregon universities are currently not allowed to keep any interest accrued on student tuition.
Moreover, expenditure limitations make it so universities do not get to use tuition dollars in excess of what the predicted enrollment projected the year before.
Removing these regulations, while technical, would do a lot for universities during the state’s current budget crisis, Saunders said.
SB 242 will continue to move through the state legislature over the next few weeks, during which time the committees expect to host a few more public hearings.
The Oregon Student Association, which represents more than 100,000 students in the state, has yet to declare a position on the bill, and looks forward to further discussion.
“There are great ideas around the table, but a change of this magnitude deserves a lot of debate in this session,” said Emma Kallaway, OSA representative and former ASUO president. “We want to maintain student involvement in the process.”
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