September 20, 2002

Contact: Jeanie-Marie Price, 503-725-3773

Executive Committee Hears Report on Budget Reductions

PORTLAND - The Executive Committee of the Oregon State Board of Higher Education met today at Portland State University to take action on several items and hear two reports, including one on the budget reductions for FY 2002-03.

Chancellor Richard Jarvis presented a report on the Legislative Cuts to the Oregon University System (OUS), as well as a proposed schedule and set of principals for individual campuses to use in making decisions regarding reductions.

OUS has already taken $50 million in cuts since the end of 2001. As a result of the most recent Legislative action, OUS will take another $1.9 million in targeted cuts and $25.2 million in across-the-board cuts. The across-the-board cuts are subject to the outcome of the income tax surcharge on the January ballot.

The principals outlined by Chancellor Jarvis cover the areas of allocation of general fund reductions by institutions, revenue and affordability. The finalized proposal for budget reductions will be presented and discussed at the full meeting of the Board in Ashland on Friday, October 18.

In other action on Friday, the Executive Committee:

· Approved and forwarded to the full Board the approval of a ten-year lease extension for Portland State University on property owned by Urban Housing, LLC, and located on SW Broadway Avenue between SW Jackson Street and SW College Avenue in Portland, Oregon. The lease extension, which includes future purchasing and development options, will save PSU approximately $20,000 per year.
· Approved and forwarded to the full Board the adoption of a formalized Audit Charter, which gives the Executive Committee audit responsibilities and formalizes the schedule of communication during the audit process. The Charter formalizes duties such as approving the Internal Audit Division's annual audit plan and budget, reviewing semi-annually the results on the Internal Audit recommendations and reporting financial irregularities resulting in losses in excess of $10,000.
· Approved and forwarded to the full Board the approval of a refund of certain outstanding series' of bonds on, or around, November 1, 2002. The projected savings to OUS, as a result of this action, are projected to be approximately $4.9 million.
· A report was heard on the status of the Strategic Planning Ad Hoc Group. This group continues to meet and make progress.

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