Since Gov. John Kitzhaber submitted his budget proposal in January, it has become known that the Oregon University System could be feeling a significant budget pinch for the 2001-2003 funding biennium.
Now that the OUS chancellor’s office has finished its report on projected losses and reductions in response to the governor’s proposal, it is becoming clear how much that pinch might hurt.
The report, prepared for the State Board of Education’s meeting on Feb. 16, projects a total shortfall of $96,213,387 for the entire system. The University could see almost $17 million less, may be forced to lose 82 faculty members and 171 staff members, admit 600 fewer students and potentially lose about $3 million in research funds.
Compiled from projections from all seven campuses, the report predicts there could also be an $11.2 million loss in public service programs and a more than $100 million loss in opportunity costs that include private and public funding, regional impacts and research grants.
Despite the dire outlook, Chancellor Joe Cox included a statement in his report that called the situation “pretty hypothetical,” and added there has been a $29.3 million budget “addback” proposed in the state Legislature that could offset some of the possible shortfalls.
University administration members were unavailable for comment.
OUS spokesman Bob Bruce said the situation seems more serious than it actually is. He said there could be several changes during the legislative session that could swing things in higher education’s favor, but he admitted the OUS had to know what the worst-case scenario could be.
“It’s prudent for the system and the institutions to study the magnitude of the [budget],” he said.
The Legislature will continue to work on the state’s budget for the next few months, Bruce said, and there are various factors including upcoming state revenue estimates that could change the current budget situation.
“We’re continuing to work to improve that situation,” he said. “The numbers could change.”
Oregon State University may take the deepest cut, as it stands to lose $22.9 million on its campus and nearly $17 million throughout its extension services. It may also lose up to 112 faculty members and be forced to admit 1,043 fewer students.
In an earlier interview, Cox said the university system would have to wait and see how the budget situation works out. He said there could be more breathing space in the state budget, stemming from the fact that lawsuits against the state have been settled for much lower amounts than expected.
“That’s good news. It means there’s that much wiggle left in the budget,” he said.
Dean of the College of Arts and Sciences Joe Stone was not concerned about the possible budget situation. He said he knew the administration was taking care of the situation, and expected things to work out in the University’s favor.
“I’m not spending a lot of time looking at the details,” he said.
Stone added there was likely enough time for the budget situation to resolve itself.
“I’m not going to worry too much until June,” he said.