A looming $290 million shortfall is forcing public universities to trim expenses to help balance Oregon’s budget. For its part, the University can absorb a $3 million cut before academic programs are seriously affected, University Provost John Moseley told the University Senate in its meeting Wednesday.
“We’re not prepared to cut at all,” Moseley said. “We’re saying we’re going to make plans up to the 4 percent level. Above that, simply because the cuts are so Draconian, there’s not time to responsibly set planning above that.”
The shortfall — which could balloon if December economic forecasts follow a downward trend — forced Gov. John Kitzhaber on Friday to order the state to retain 2 percent of its general fund money that funds state programs. The general fund provides about $16 million for Oregon’s public universities.
“This is a huge deal, and it has severe consequences for the state and Oregonians,” State Rep. Vicki Walker, D-Eugene, said. “I don’t think people are ready to panic, but it’s like when you look in your own checkbook and there’s not enough money. You’ve got to find ways.”
The University already has been asked to reduce its budget by $1.5 million, or 2 percent, in the initial stage of Kitzhaber’s plan to balance the budget. Moseley said the Oregon University System, which oversees Oregon’s seven public universities, has asked each university to submit a plan detailing how it could reduce its budget in 2 percent increments up to 10 percent.
“We’re planning for more because the governor told us to,” Moseley said. “I think at the larger numbers, he’s looking into the next biennium in case funding continues to be reduced.”
Members of the Senate Budget Committee, administrators and deans have been discussing ways to mitigate the impact of a budget shortfall on academic programs and other student services. While many hope to wait until the state releases an updated economic forecast Dec. 1, University officials are mulling several options.
“It could be done by administrative reorganization and by putting off some expansion projects,” University Senate President Nathan Tublitz said. “And by using some increases in funds from other sources to shore up cuts.”
Eric Martin is a higher education reporter for the Oregon Daily Emerald. He can be reached at [email protected].