OUS Budget Presentation
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Transcript of OUS Budget Presentation
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8/6/2019 OUS Budget Presentation
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HIGHER EDUCATION
IN OREGON:
John Minahan, President, Western Oregon University
George Pernsteiner, Chancellor, Oregon University System
1
Sustaining theMomentum
The Statesman Journal Editorial Board
June 7, 2011
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Todays baseline2
Oregon public higher education is:
Successful: enrollment, retention, transferrates, degrees, research
Efficient: costs per degree, ROIs Economic Driver: research and
economic contributions significant
Focused: strategy for 2011-13: Need GRB, SB 242, to
control costs, improve flexibility, keep tuition to servestudents
Accountable: performance compact aligned with stategoals
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3
65,698
66,637 61,614
69,508
80,888
96,960
106,381
50,000
60,000
70,000
80,000
90,000
100,000
110,000
120,000
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
HeadcountEnrollm
ent
Actual
Projected
0
OUS enrollment growth outpaces U.S.3
Actual and Projected Fall Enrollment1987 through 2015
Source: OUS
Institutional
Research Services.
Nearly 30,000 more students
in last 10 years
Ten year growth for OUS continues to outpace national averages, increasing almost 40%since 2000, compared to average national growth estimates of just under 25% at public
universities.
Were Successful
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Student success: retention, degrees4
79.70%
82.40%
13,288
17,920
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
77%
78%
79%
80%
81%
82%
83%
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
DegreesAwarded
RetentionRate
OUS Indicators of Student Success
Freshmen Retention Rates Degrees Awarded
0%
Source: Oregon University System, 2010 Performance Report: Report to the Oregon State Board of Higher Education; OUS Fact Book.
NOTE: Data on degrees awarded exclude certificates.
Were Successful
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OUS cost per degree among lowest5
Education and Related Spending per Completion (2008)
This indicator provides another view of output in relation to inputhow
much it costs to produce certificates and degrees by institution type.
Source: Delta Cost Project, from the report, Complete to Compete, Oregon
Higher Education Data Dashboard
Were Efficient
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OUS cost control and efficiency measures,
ongoing6
Academic efficiencies Reduction or elimination of low-enrollment courses, reduces courses offered while serving higher
enrollments
Addressing bottleneck courses allowing students to make better progress and reduce time todegree
Improved retention and student success activities, such as advising and counseling, allow studentsto be more efficient in progress to degree, include degree audit software
Numerous partnerships with K-12, Community Colleges, and other educational providers tocreate synergies and cost efficiencies
Consolidation of academic and administrative units to garner efficiencies and reduceadministrative overhead
New processes to ensure all qualified Oregonians have access to OUS UO/SOU enrollment partnership
OUS/CC joint admissions
Operational efficiencies
Once SB 242 passes: reduced costs from assessments, risk insurance, less bureaucracy inmany areas, such as capital construction, other areas
Were Efficient
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Faculty, campuses contributing to Oregons economy
7
$203.1$221.7
$238.4$253.3 $263.6
$280.5
$317.0 $318.0$328.0
$359.8
$380.2
$0
$50
$100
$150
$200
$250
$300
$350
$400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Expendituresinmillions
OUS Total Research and Sponsored Projects Expenditures
Source: Oregon University System, 2010 Performance Report: Report to the Oregon State Board of Higher Education; OUS Fact Book.
Oregon faculty rank 5th nationally in federal research outlays.
Were an Economic Driver
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Economic impact of universities8
OSU, PSU and UO each have an economic impactbetween $1.4-2.0 billion in Oregon; smaller campuses$75-120+ million each
The $407 million in capital construction for OUS in the
2011-13 GRB will generate 3,650 jobs across Oregon. 13,000 benefits-eligible jobs on campuses
Employ 17,000 part-time and student employees
Buy products from 8,300 vendors at $511 million in 2008-
09
13,000 OUS employees, 97,000 students, and our vendorsspend an additional $2+ billion in Oregons localcommunities.
Were an Economic Driver
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ETIC: meeting engineering, technologyneeds
9
Engineering & Technology Industry Council:
Produces work-ready graduates in fields that are inhigh demand
Allows Oregon employersboth current and new --to create products and services that create new jobsat all levels
Produces educational and career opportunities forOregonians
Attracts private dollars and federal dollars toOregon
Supports economic growth that will grow our tax base
Were an Economic Driver
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Statewides*: meeting rural andurban needs in Oregon
10
Statewides*: Doubled state investments by generating >$82 million in external research grants,
providing $190 million in economic benefits in Oregon, creating over 2,300 familywage jobs;
Create and transfer innovative products and processes that help Oregon businessescompete in global markets
Contribute to community/family well being. Annually >18,000 volunteers contribute>2 million hours to OSU Extension, reaching >2 million Oregoniansincluding onein five K-12 youthwith problem-solving knowledge
Directly serve eight industry clusters identified in the Oregon Business Plan:Agriculture, Food Processing, Forestry and Wood Products, Nurseries, Tourism and
Hospitality, Energy Efficiency, Green Building and Development, and Bioscience
*Oregon Agricultural Experiment Station; OSU Extension Service; and Oregon Forest Research Laboratory
Were an Economic Driver
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2009-11 LAB * 2011-13 GBB % Change
State General Fund
Education and General $601.5 $531.7 -11.60
Agricultural Experiment Station 53.5 46.6 -12.90
Extension Service 39.1 34.9 -10.74
Forest Research Laboratory 5.8 5.1 -12.07
Subtotal Operations 699.9 618.3 -11.66
Debt Service 68.7 96.4 40.32
Total General Fund $ 768.6 $ 714.7 -7.01
LotterySports Lottery 9.7 11.3 16.49
Debt Service 13.4 17.2 28.36
Total Lottery 23.1 28.5 23.38
Total All $ 791.7 $ 743.2 -6.13
* As of January 2011; includes June and September allotment reductions and $69.0M Federal stimulus
Governors Balanced Budget for OUS11
OUS State General and Lottery Fund Budgets($ in millions)
Were Focused
Stimulus reductions will alsoaffect campuses in 2011-13
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12
$768.6
$714.7
$627.3
$407.8
$364.3
$200
$300
$400
$500
$600
$700
$800
$900
1987-89 1989-91 1991-93 1993-95 1995-97 1997-99 1999-01 2001-03 2003-05 2005-07 2007-09 2009-11 2011-13
Millions
Actual Appropriation CPI-Adjusted Appropriation
0
12
OUS appropriations 1987-89 to 2009-11
Biennial State AppropriationActual and CPI-Adjusted
(dollars in millions)
Note: 2007-09 and 2009-11 include Federal ARRA funds as General Fund offset. Source: OUS Fact Book 2010, page 110; OUS Budget Operations.
2011-13:Governor's
Balanced Budget
In 2009-11 OUS share of State General Fund was 5.8%, down from 7.5% in 1999-01, and down from
15.3% in 1989-91. OUS still needs a long term solution to inadequate funding that works for all the
universities and all of Oregons students.
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State funding per fundable* FTE13
$2,878
$4,736
$2,247
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
$5,500
$6,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FundableStudentFTE
StateFundingperFundableS
tudentFTE
OUS Enrollment Funding per Fundable* Student FTE
Actual funding per FTE Inflation Adj. Funding per FTE Fundable FTE Enrollment
$0 0
69,179
50,238
Fundable* Student enrollment increases
As enrollment has risen, per student funding has fallen.
Were Realistic
*Fundable students are mainly residents, but includes all PhD students, all EOU students (currently), and all part-time students
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Tuition cost drivers impact students14
Single largest driver of resident undergraduate tuition at all publicuniversities is the level of State support (see next slide)
The second largest driver of increased tuition is cost inflation,especially in compensation related costs, comprising 78% of OUSoperating expenditures
PEBB rates have increased 196% in 11 years: $4,800 per employee in1999-2000 to $14,196 in 2010-11. With SB 242, OUS will form anemployee-management team to explore alternative health care optionsat lower cost than PEBB.
OUS pays a composite PERS rate of ~14% of subject payroll (includingPension Obligation Bond debt service). As of July 1, 2011 will increaseto 20% (increase of 43%). This will necessitate a 4% tuition increase inthe first year of the biennium just to cover this retirement cost increase.
Total tuition plus State General Fund funding per student FTE,adjusted for inflation, has declined slightly between 1999-00 andthat projected for 2012-13
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Oregon tuition increases vs. national15
Percentage Change in In-state Tuition (2004-05 to 2009-10, not adjusted for inflation).
This indicator gauges the degree to which state colleges and universities have used tuition
as a funding source during the recent economic downturn.
Public Two-year Public Four-year
Source: The College Board, from the report, Complete to Compete, Oregon
Higher Education Data Dashboard
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Conclusions based on the Governors
Balanced Budget16
OUS will be able to maintain current momentum ofrecord enrollments, student success and researchfunding for 2011-13, with:
Governors Balanced Budget, combined with:
Tuition increases approved by Board of HigherEducation (5-9%) coupled with allowances for need-based aid to maintain access and affordability;
Continued reliance on greater numbers of non-resident students and the implementation of non-resident tuition rates at all campuses; and
SB 242 becomes law.
W Eff d A bl
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OUS planned efficiencies, cost reductions,
and revenue enhancement for 2011-1317
Across-the-board cuts
Position reductions
Program review and reduction
Collaborations in internationalstudent recruitment, ESL programs
Expanding markets
Out-of-state recruitment
Greater use of distance delivery
Utilization of nonresident tuition at all campuses
Were Efficientand Accountable
W F d
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SB 242 improves planning, services to
Oregonians18
Fewer regulations reduces delays and uncertainties
Eliminating fears of fund redirection makes planning more rational andgives the Board and presidents greater control over OUS affairs
Tuition stays on campus (including, now, interest earnings on tuition, directed toneed-based financial aid) to fund student instruction and services, financial aid
Absence of expenditure limitations allows campuses to spend revenues to servecurrent and anticipated enrollments, student support
Less overhead and administrative burdendue to a focus on performancemetrics as opposed to line-item controlsfocuses the conversation on valueadding activities and issues
Greater accountability for performance deliverables results in better services tothe people of Oregon
Were Focused
W A bl
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SB 242 performance compact focused on
outcomes, accountability19
Access and affordability
Student success
More degrees
Graduate employment success
Knowledge creation & innovation enhancement
Workforce enhancement
Educated citizenry
Efficient fiscal stewardship
Were Accountable
W A t bl
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We know where were going20
Higher education goals for Oregon:
Increase the education level of Oregonians
Deliver high quality education
Provide research to advance innovation
Contribute to the civic and economic successof Oregon communities
Were Accountable
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Conclusions21
OUS has made major strides in the last decadedespite significant financial challenges: recordenrollment, student success, and researchactivities will help Oregon rebound from therecession
The Governors Balanced Budget, single-digittuition increases, improved cost control, and SB242 will allow OUS to continue this momentumand will result in improved services toOregonians
Funding issue for higher education still needs tobe addressed for long term stability andstudent success
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Additional Data Slides22
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23
State assessments and SB242
OUS would continue to pay assessments for:
Secretary of State for audits, archives andadministrative rules = $3.2M/biennium
Ethics Commission = $200K/biennium Central Government for Legislature and Governors
Office = $1.2M/biennium
Minority, Women-Owned and Emerging Small Business(MWESB) = $159K/biennium
Treasury for banking servicesvaries depending onservices used
Still be under public records/meetings regulations
23
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24
Assessments that would no longer applyto OUS after SB 242
Risk managementOUS would be free to purchasecommercial insurance or join other self-insuranceprograms
Current costs = $23.8M/biennium
Enterprise Information Strategy and Policy Divisionassessments
Current costs = $322K/biennium DAS assessments
Current costs = $2.2M per biennium
24
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For more information25
Contact Di Saunders at OUS
503-725-5714; 971-219-6869
Go to www.ous.edu
Go to:
www.ous.edu/state_board/committees/governance/proposal for specific info on higher ed reform