Budget and Legislative Update

1

• Budget and Legislative Update
• March 10, 2009 

2
Accreditation

• We are still accredited by NWCCU
• Delay in finalizing action regarding
  accreditation
• a) Focused Interim Report addressing standards
  cited in Commission letter and recommendations in
  site visit report
• b) Visit by Accreditation team, April 2010
• c) Appearance at Commission, July 2010

3
Accrediation

• During interim period, now - August 2010, EOU in
  a probationary status
• All Hands on Deck to work with one another and
  new EOU President to finalize reaffirmation of
  our accreditation.

4
Accreditation

• In April 2008 and October 2008,
• A. 12 Institutions given probationary status
  including University of South Florida (St.
  Petersburg), Texas Southern University (Houston),
  and Texas Tech (Lubbock)
• B. 11 other Institutions were removed from
  probationary status, including College of the
  Redwoods (Eureka), College of Marin (Kentfield,
  CA), and Florida A and M (Tallahassee)

5
EOU Adjusted 07-09 Budget

• EOU 4.22 of Total OUS EG
• 1 cut in December 08 of 9 million OUS Cut
  381,000
• Another recently announced 4 OUS cut (37
  million) is 1,558,000 at EOU
• Total 07-09 EOU cut so far 1,939,000
• Projected Fund Balance after 1 cut 2,810,000
  (8.9)
• Projected Fund Balance after 4 cut 1,530,872
  (5.1) includes our ability to further reduce
  S/S by 278,880

6
EOU Adjusted 07-09 Budget

• Fund Balance 7/1/08 2,394,000
• Net Revenue projected 416,000
• 2,810,000 (8.9)
• 1 cut requested 12/08 covered by SS reductions
  totaling 381,092
• A portion, 278,880 of additional 4 cut, also to
  be covered by more SS reductions, for a total of
  659,972

7
EOU Adjusted 07-09 Budget

• Balance of overall 5 cut, totaling 1,939,000 to
  be covered by Fund Balance or 1,279,128
• New projected Fund Balance, 6/30/09 2,394,000
  416,000 - 1,279,128 1,530,872 (5.1)

8
Voluntary FTE Reductions

• Deans (or equivalent), AVPs, VPs, and Presidents
  asked to volunteer to accept
• a) 1 day unpaid per month, March June, 2009
  (5640/month)
• b) Equates to a 4.6 reduction
• All other unrepresented employees may volunteer
  if they wish (forms required)

9
Voluntary FTE Reductions

• Yes, does affect annual salary, but
• Will not affect vacation and sick leave accruals

10
2009-2011

• Unrepresented Employee Contracts will be reduced
  from 1.0 FTE to 0.954 FTE
• Negotiations with Unions will determine effect on
  represented employees
• 8 hrs/mo. X 12 mos 96 hours unpaid
• 2080 hours 40 hrs/wk X 52 wks/yr
• 96 / 2080 4.6 reduction

11
OUS and Change

• Common OUS Acceptance Form by Fall 2010
• Shared Data Systems
• Low Enrollment Undergraduate Classes
• Differentiated Tuition
• Conversion to Semesters
• More Flexibility in Course Scheduing

12
Miscellaneous

• Savings from voluntary FTE reductions for next 4
  months are credited to the institution
  (5640/month)
• 2009-2011 reduced FTE will be reflected in a
  reduction of 4.6 in all state agency budgets
• Reporting of unfilled positions, reduced FTEs,
  layoffs
• May 15 is next Oregon revenue forecast currently
  855 million shortfall by 6/30/09

13
Miscellaneous

• 3 - 5 billion shortfall projected for 2009-2011
• a) 1.5 billion available from Rainy Day and
  Educational Stability Fund, and Federal Stimulus
  Package
• b) Another 1.5 billion in cuts will be
  necessary and/or revenue will need to be raised
  (increase fees 18-month income tax surcharge)

14
Miscellaneous

• ESF expected to reach 600 million by 6/30/09
  with inflow of lottery
• Governor wants annual budget
• Governor wants to hold back 40 of the 2 billion
  Federal Stimulus package and reserves until
  February 2010 to help address balance of 09-10,
  as well as possible support for 2010-2011
• It is anticipated that it will be the 3rd or 4th
  quarter of 2010 before things start to turn
  around after bottoming out at end of 2nd
  quarter 2010 ie. June 2010