Budget 2009 Q and A
SOU's Budget Situation: Q and A
Updated March 13, 2009
Is SOU going to raise tuition for spring term? What about next year?
Tuition will not increase for spring 2009. We don't know at this point what tuition will be next year; however, SOU typically increases tuition every year (tuition has increased 3.4% each of the last two years, the same rate increase as the median family income). The university is very committed to affordability for students, so we will try to keep increases as low as possible given the significant financial pressures we are sure to face through the next biennium.
What will happen to student scholarships?
Endowments are down nationwide. The SOU Foundation Board is working to identify potential shortfalls and ways to continue supporting students at the level they received this year. We are hopeful that Pell funding will increase and that the Oregon Opportunity Grant (OOG) program will be continued. SOU has agreed to fund the OOG shortfall for SOU students in spring 2009.
How will budget cuts affect students in other ways?
SOU is very committed to maintaining the quality and integrity of our academic programs and student support. Until we have more information on the funding for higher education in Oregon in the next biennium, we do not know what changes may have to be made.
We're getting almost $2 million for repair of buildings. Why can't we use this money to make up for budget shortfalls?
We have received state stimulus funding specifically to help create jobs in our region. These funds are actually an "advance" on our maintenance and repair allocation from the state; it is not new money. These funds must be used for the building projects we have outlined for the state, and we must report on the number of jobs these projects create.
Will SOU be facing faculty or staff layoffs?
Oregon is dealing with a critical budget shortfall that will undoubtedly affect the state universities. SOU is in the second year of financial retrenchment; while we have made progress toward financial stability, we are still relatively fragile. If our state allocation is significantly reduced, we will have to look at every option to remain solvent. Yes, layoffs are a possibility. We are going to explore a multitude of options. As I said earlier, maintaining the integrity and quality of academic programs and student support is a top priority.
The newspaper noted our significant increase in student headcount. Has this increase improved our financial situation?
Increasing student enrollment is critical to our financial stability. I am delighted that we are trending upward; moreover, our retention of students is improving. However, our funding comes from FTE, and that is still only slightly higher than it has been. We have several small classes still in the pipeline from years past. We need to continue working hard to gain significant increases in enrollment and retention. Then, yes, increases in FTE will greatly help to improve our financial situation.
Will the federal stimulus package help SOU?
Any federal money that comes to Oregon will help reduce the state's budget problems. Additional Pell funding will definitely help our students. We hope there will also be federal assistance for the public universities in our state, but, as I write this, I have no idea what might come to us.
A Financial Strategies Task Force has been formed. What's their charge?
As I recently wrote the campus, I have appointed a Financial Strategies Task Force. This ad hoc group, which will be chaired by Susan Cain, will work through June 2009 and will make regular recommendations to the President and the Executive Cabinet. Composed of members from UPC and the Budget Committee, as well as representatives from students, faculty, and staff, the group will assist the campus in addressing strategic, big picture issues. Essentially, the group will serve as a think tank to help ensure that a variety of ideas comes forward for careful consideration.
I heard that a bill has come forward to make the regional universities branch campuses of the larger Oregon universities. What's the story?
Senate Bill 442 has been sponsored by the Committee on Education and General Government. The bill would require the State Board of Higher Education to study a number of efficiencies for higher education. A merger between regional and larger universities is not a major consideration at this point.
