2005-2007 Governor’s Recommended Budget
for the Oregon University System
December 2004
Highlights
The Governor’s Recommended Budget will enable OUS universities to enroll more than
80,000 students per year in 2005-2007.
The budget makes a substantial investment in university facilities, including new
construction in Medford (with Rogue Community College), and significant repair and
maintenance at each campus.
The budget makes affordability a hallmark by more than doubling state funding for the
Oregon Opportunity Grant (in the Oregon Student Assistance Commission budget).
The budget allows universities to keep tuition increases well within single digits each year.
The budget invests directly in the commercialization of the intellectual capital developed
by our campus research enterprise (in Oregon Economic and Community Development Department budget
for higher education).
Overview
The total amount of State General Funds for the Oregon University System (OUS) in the
Governor’s 2005-2007 Recommended Budget (GRB) is $685.4 million, including Capital
Construction and debt service, a 2.1% increase over the $671.3 in General Fund in 20032005. The budget supports the Board’s key initiatives for postsecondary education, which
are focused on the over-arching goals of Access, Affordability, Excellence, and Economic
Development.
The Education and General portion of the GRB (funds used for campuses and Chancellor’s
Office, and excluding Statewide Public Service Programs, capital construction and debt
service) is $549 million, an increase of $4.6 million or 1.1% over the 2003-2005 biennium.
The increase in State General Funds will not be sufficient to carry forward the current level of
programs from the 2003-2005 biennium. The Essential Budget Level for 2005-2007 is
$581.5 million for the Education & General Operating Budget, or $32.6 million more than the
GRB. The additional funding is needed to cover cost increases in areas such as PERS and
health insurance.
Policy package requests from the State Board of Higher Education funded in the GRB total
$3.4 million, with $2.2 million for the More Better Faster data system to ease 2-year to 4-year
college transfer movement for students; and $1 million to reflect the importance of funding
faculty recruitment and retention.
For the OUS Capital Construction budget, the GRB for 2005-07 totals more than $300
million, a combination of $17.2 million in General Fund amounts (an increase of 50% over
the $11.5 million in GF provided in the 2003-2005 biennium), various bond funding, and
private donations. This portion of the GRB represents a significant investment in the protection
of Oregon’s campus assets, student access, and in Oregon’s economy through job creation.
Statewide public service programs offered through Oregon State University – which include
the Agricultural Experiment Station, Extension Services, and the Forest Research Laboratory
– totaled $89.1 million in General Funds in the GRB, a reduction of $1.2 million or 1.3% from
the 2003-05 Legislatively Approved Budget and a 7.7% reduction from the Essential Budget
Level.
The Total Budget for OUS in the Governor’s 2005-2007 Recommended Budget (GRB) for
the Oregon University System is $4.5 billion, with $685.4 million in State General Funds. The
budget also includes $1.4 billion in Other Funds Limited (including nearly $1 billion in tuition
and fees and $337 million in capital funding). Another $2.4 billion in Non-Limited Funds from
gifts, grants, contracts and self-support activities is included, although these funds generally
cannot be used for instruction or general campus support.
The Capital Construction portion of the GRB includes funding for Capital repair ($23.6
million); deferred maintenance, tier 1 and 2 projects ($47.3 million); the OSU Power Plant ($55
million); the Southern Oregon University (with Rogue Community College) site building in
Medford ($11.8 million); Self-supported projects by campuses ($149.1 million); and Giftfunded projects ($68 million).
An estimated 3,200 jobs will be created in Oregon through these Capital Construction
projects over the life of the projects (using an industry standard of 9 jobs per million dollars).
Oregon University System
Summary: Governor’s Recommended Budget for 2005-2007
In millions of
dollars
2003-2005
Legislatively
Approved Budget
2005-07
Essential
Budget Level
Governor’s Rec.
Budget
Change from
EBL
Change from
2003-2005 LAB
General
Fund
$671.3
Other Funds
Limited
$1,488.4
Total Limited
Funds
$2,159.7
Non-Limited
Funds
$2,087.3
Total All
Funds
$4,247.0
$721.4
$1,091.9
$1,813.3
$2,404.2
$4,217.5
$685.4
$1,420.4
$2,105.9
$2,425.6
$4,531.5
-5.0%
30.1%
16.1%
0.9%
7.4%
2.1%
-4.6%
-2.5%
16.2%
6.7%
Includes Debt Service, Capital Construction, Lottery
Office of the Chancellor
503-725-5714
www.ous.edu
12-03-04_dls