University administrators and faculty have been waiting for weeks to find out how much money the University will receive from the federal stimulus package. Gov. Ted Kulongoski may have their answer: $0.
The federal stimulus bill allocates money for a “State Stabilization Fund,” which is meant mainly to support state funding for education. Kulongoski proposed to the Oregon State Legislature that all education funding from the bill go toward K-12 and community college education, University Provost Jim Bean said in a prepared statement Friday. If the legislature passes the proposal, the Oregon University System will see no stimulus money.
Kulongoski has vowed not to tap into the Rainy Day fund to help K-12 schools, saying it would make the situation worse for the next biennium, hence his proposal to OUS.
Frances Dyke, University vice president of finance and administration, said the governor’s decision was not what the University had expected. The University will now face a $6.4-million budget cut for the remainder of the fiscal year, about $2 million more than anticipated, Dyke said.
The University had also expected to receive stimulus money during the next two years, which will also not likely happen now, she said.
A lack of funding for the next biennium will force the University to make difficult budget decisions. Dyke said, “In order to maintain quality in the University, the burden will have to shift back to the students.”
By “shift back to the students,” Dyke means a tuition increase, and a large one at that. OUS and the legislature currently have an agreed-upon tuition increase cap of 3.6 percent per year.
The increase, however, “will be higher than 3.6 percent,” said George Pernsteiner, OUS chancellor, at the Feb. 11 University Senate meeting.
Dyke said the same, but added that 30 percent of the increase will be put toward financial aid for low-income students, a model called “higher tuition, higher aid.”
Read full article: Tough road ahead: Oregon faces severe financial crisis