Students will see a 6 percent increase in tuition next year as a result of cuts in state funding for higher education.
On June 4, the Oregon State Board of Higher Education met to review and approve budget figures for the 2010-11 academic year, including resource allocation and budget cuts.
The finalized plans will result in a 6 percent tuition increase at the University, from $6,180 in-state per year in the 2009-10 academic year to $6,804 for the coming year for undergradudate students enrolled in 12 credits. The increase is due, in part, to a $31.6 million reduction in the 2009-11 operational budget mandated by Oregon Governor Ted
Kulongoski in reaction to falling state revenue levels.
“The state financial situation is not good,” University Vice Provost for Budget and Planning Brad Shelton said. “Let’s all keep our fingers crossed that the state economy improves and improves quickly.”
Simultaneously, the effects of the budget constraints are being magnified by the increasing enrollment rate at Oregon University System institutions. Enrollment is projected to rise 5 percent from last year’s figure, according to state reports.
“Most of our expenses are not fixed,” Shelton said. “They are directly related to the number of students on campus. More students requires more faculty, more student support services, more energy, more security, more advising … the bottom line is that we need increased tuition revenues to protect and enhance the quality of the education we provide.”
More recently, on June 15, the Oregon State Legislature held an Emergency Board meeting to establish policies that would help OUS institutions weather the storm of decreased funding. Among the measures adopted by the Emergency Board, schools will have greater freedom to utilize “Other Funds” resources that are typically restricted by the state. In addition, the state is hoping that institutions will follow the lead of Oregon State University in adopting measures that will augment operational efficiencies and keep costs at a minimum.
Despite these proposed efforts, the estimates given at the meeting for the state’s higher education budget in the future were less than optimistic said University Director of State Relations Courtney White, who attended the meeting.
“The Legislative Fiscal Office is very concerned that the current revenue picture could deteriorate even further this biennium,” White said, “given that the state is only half way through the 2009-11 biennium and already revenue shortfalls have caused significant General Fund reductions through the Executive Branch allotment process. Further, projected revenue for 2011-13 shows the state will be well short of being able to fund the same level of General Fund supported government services next biennium that are being provided in 2009-11.”
However, the financial rates approved by the State Board of Higher Education are not concrete, as they are based on projected revenue figures and may be subject to change if the state’s economic situation worsens. This would likely mean further tuition boosts for University students this year.
“One can imagine a mid-year rescission of the state appropriation to higher education,” Shelton stated. “But the University has very little opportunity to cut expenses in the middle of a fiscal year. A mid-year tuition increase would be one of the options we would consider … that is not something we would do lightly and we would try very hard to avoid it.”

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