AUTHORIZATION OF HEARINGS OFFICER

Summary

At the January, 15, 1999, Executive Committee meeting, Vice Chancellor Anslow requested the appointment of Vice Chancellor Clark as Hearings Officer for an appeal filed by a former UO employee. Following approval of the minutes to the meeting on February 18, 1999, counsel indicated to the Board Secretary that amendments should be made to more clearly reflect Vice Chancellor Clark's role as Hearings Officer. The Executive Committee is scheduled to vote on the proposed amendments to the minutes at its April 15, 1999, meeting. Following are the requested amendments to the minutes as written (Bracketed text denotes deletions, bold text denotes additions):

Vice Chancellor Anslow asked for the Executive Committee's approval [of naming] to designate Vice Chancellor Clark as hearings officer for [a grievance at the UO] an appeal filed by a former UO employee who was denied entry into the Board-established Early Retirement Incentive Program. The UO participated in this program but only using the health insurance, not the lump sum incentive. The Early Retirement Incentive Program required employees to sign up between April 1, 1996, and June 15, 1996. The person who filed the initial petition contacted the UO about participating in January 1997. [The case involves an employee who is appealing a decision that denied this person's entry into the System's early retirement program.]

["Since this is a Board-established program, we felt it would be appropriate for the Executive Committee to authorize Dr. Clark as hearings officer in this case," said Mr. Anslow.]

Executive Committee Discussion and Action (January 15, 1999)

Ms. Wustenberg moved and Ms. McAllister seconded the motion to approve the authorization of Dr. Clark as Hearings Officer and designate authority for her to render the final decision in the appeal. The following voted in favor: Directors Aschkenasy, Christopher McAllister, Wustenberg, and Imeson. Those voting no: none.

BOARD ACTION:

AUTHORIZATION TO AWARD HONORARY DOCTORATE, EOU

Staff Report to the Board

The Board of Higher Education permits institutions, with the concurrence of their faculty, to award honorary degrees. Each institution wishing to award honorary degrees must adopt criteria and procedures for selection that will ensure the award honors distinguished achievement and outstanding contributions to the institution, state, or society. Criteria and procedures for selection must be forwarded to the Chancellor or designee for approval.

In 1999, Eastern Oregon University developed criteria and procedures for awarding honorary degrees consistent with the Board's policy. These criteria/procedures have been approved. Because EOU's policy is newly developed and this is the first such award to be proposed, staff asks the Board's understanding of a shortened timeline for Board approval. (These requests are customarily presented to the Board at its regular meeting in February, under guidelines that enable Board consideration of campus recommendations for honorary degrees 90 days before the award date, which is typically spring commencement.)

Eastern Oregon University requests authorization to award an honorary doctorate to the Honorable Gordon H. Smith at its June 1999 commencement. EOU anticipates a second nomination to be presented to the Board at its regular meeting in June; degree conferral would occur at a special event in fall 1999.

Gordon H. Smith

The Honorable Gordon H. Smith has a long career of service to Oregon through public office and private entrepreneurship. Born in Pendleton, Oregon, Smith earned a baccalaureate degree in history from Brigham Young University and a law degree from Southwestern University. He served as law clerk to Justice H. Vern Payne of the New Mexico Supreme Court and then practiced law in Arizona. Subsequently, Smith purchased the family frozen-vegetable processing company in eastern Oregon. The company, in debt at the time of purchase, was guided back to profitability through Smith's hard work and determination. Smith Frozen Foods is now one of the largest private label packers of frozen vegetables in the U.S. and an important component of Oregon's regional economy.

Drawn to public service, Gordon Smith successfully campaigned for a seat in the Oregon State Senate in 1992. In 1995, Senate colleagues elected Smith to the position of president of the State Senate. In 1996, Senator Smith was elected to the U.S. Senate, assuming the seat left open upon the retirement of Senator Mark O. Hatfield and becoming the first senator from eastern Oregon in almost 60 years. In his current federal role, he continues a commitment to expanding access to education and to a balanced approach to the long-term protection, utilization, and enjoyment of our natural resources.

Although still early in his first term as a U.S. Senator, Smith is a majority member of three important Senate committees: Energy and Natural Resources, Foreign Relations, and Budget. On the Energy and Natural Resources Committee, Smith is chair of the subcommittee on Water and Power and is also a member of subcommittees critical to the Pacific Northwest: Forests and Public Land Management; Energy Research, Development, Production, and Regulation; and East Asian and Pacific Affairs. His Budget Committee assignments include chairing the Task Force on Education. Repeating a pattern of quick recognition of leadership abilities, Smith's Senate colleagues have selected him as Deputy Whip. Smith has also multiplied the capacity of elected federal leaders to serve Oregon well by working closely and across party lines with Senator Ron Wyden and other members of the state's congressional delegation.

Pendleton remains home for Senator Smith. His record of service to Oregon clearly merits the award of an honorary degree; his particular understanding of and dedication to the needs of the eastern region make it especially appropriate for this honor to be bestowed by Eastern Oregon University.

Staff Recommendation to the Board

Staff recommends Board authorization to Eastern Oregon University to award an honorary doctorate to Gordon H. Smith at its June 1999 commencement.

BOARD ACTION:

EXCHANGE OF FOREST LANDS, OSU

Summary

In February 1995, a 95-acre parcel of land was donated by the Oregon State University Foundation to the State Board of Higher Education for use by the OSU College of Forestry. In order to provide for road access into the parcel, OSU has negotiated an agreement with the original owners to exchange 4,253 acres of the OSU parcel, valued at $25,203, for 3.655 acres adjacent to the original donated property, valued at $36,550.

Staff Report to the Board

In late 1994, a 95-acre parcel of forest land in Clackamas County was donated by Mr. and Mrs. Vittz Ramsdell to the Oregon State University Foundation, for use by the OSU College of Forestry. In 1995, the OSU Foundation, in turn, donated the land to the State Board of Higher Education to be used as a teaching and demonstration forest for non-industrial forest owners in Clackamas County.

In order to utilize this land for the purposes intended, it is necessary to provide a road into the parcel. There are two unequally-sized areas that make up the parcel and they are connected via a 175-foot-wide gap that rises over steep terrain. After study, it was found that building a road into these parcels would involve costly engineering and environmental solutions. To avoid some of the costs of building on steep slopes and unstable soils, OSU has been able to obtain an easement from other adjacent property owners. The University also has negotiated an exchange of parcels with the Ramsdell family so that OSU would own the property on which the new road would be constructed.

With the cooperation of the landowners, and after two years of planning, surveying and cost estimating, the OSU College of Forestry has negotiated a solution that will provide suitable land over which to construct the access road through the 95-acre parcel. What is proposed is an exchange of 4.255 acres of the original gift property back to the owners who will, in turn, provide 3.655 acres of adjacent land (a map of the property is on file in the OUS Facilities Division). Because of the difference in the value of timber on these parcels, the value of the OSU acreage plus timber, ($25,203) is less than the value of the acreage plus timber being received in exchange ($36,550). The owners are, in effect, making an additional $11,347 charitable contribution to the Oregon University System. Costs to build the access road will be covered by the OSU College of Forestry.

Staff Recommendation to the Board

Staff recommend that the Board approve the exchange of 4.255 acres owned by the Board of Higher Education and valued at $25,203, for 3.655 acres of land valued at $36,550 to provide for road access into a parcel of land as described in a Bargain and Sale Deed between the State Board of Higher Education and Vittz and Elaine Ramsdell, such deed to be executed forthwith upon execution by the Board President and Secretary.

BOARD ACTION:

M.A./M.S., CONFLICT RESOLUTION, PSU

Staff Report to the Board

Portland State University proposes to offer an interdisciplinary program leading to a master's degree in conflict resolution. This degree program builds on existing program elements. It would provide students with the opportunity to master the principles, insights, and techniques for resolving conflict. Students will gain an understanding of the various kinds of conflict (psychological, interpersonal, social, and global) and add depth by the development of a focus area (i.e., family, organization, environment, human services/education, intercultural/international). Students in this program will be well-grounded in both theory and practice, from an exploration of the deepest philosophical issues to hands-on practical applications of conflict resolution.

The underlying premise of the program is that understanding conflict and gaining skills in conflict management are relevant to all professions and walks of life. Increasingly, a wide variety of organizations and groups (e.g., professional communities, neighborhood associations, families) are turning to mediation and conflict resolution professionals to work through disputes. Because legal avenues are often costly in terms of both time and money, more people and organizations use arbitration, mediation, negotiation, and conflict resolution to settle disputes.

Courses in the departments of philosophy, speech communication, sociology, psychology, international studies, political science, counseling, education, social work, and urban studies will be available to students enrolled in the program. Course requirements include 28 credits of core coursework, 16 credits in the focus area, 9 practicum/internship credits, and 10 thesis seminar/project credits. It is anticipated that graduates of the program will find positions as mediators, arbitrators, and violence-prevention specialists; many, however, will apply this skill to their current professions.

PSU has had many experiences that convey widespread support for such a program. For example:

This program has been developed through a partnership of academic, campus, and community interests. An advisory board, with representatives from government, for-profit and nonprofit businesses, social service agencies, and education, will work with the PSU dean to conduct annual evaluations of the program. The only related OUS programs are an undergraduate minor in peace studies available at the University of Oregon and an undergraduate and graduate minor in peace studies at Oregon State University.

An external team composed of nationally known faculty from George Mason University, Columbia College, Cleveland State University, and the University of Massachusetts--Amherst has reviewed the program and strongly supports implementation. PSU has modified the program proposal to respond to recommendations made by the external review team. For example, to ensure that a critical mass of regular faculty carry primary responsibility for the program, the faculty coordinator position has been changed from fixed term to tenure track. In addition, a third core faculty will be added, with no core faculty teaching more than two required courses. The three-year goal is to have 4.0 FTE core faculty to support this program. Other changes included increasing the number of required credits from 55 to 63 and adding Research Methodology and Advanced Mediation as required courses. PSU has developed a revised budget that includes sufficient library resources for this program as well as adequate faculty resources.

Academic Council favorably reviewed this program at its March 1999 meeting.

Staff Recommendation to the Board

Staff recommends that the Board authorize Portland State University to establish a program leading to an M.A./M.S. in Conflict Resolution, effective spring term 1999, with a follow-up review to be conducted by the OUS Office of Academic Affairs in 2004-05.

BOARD ACTION:

M.A./M.S., WRITING, PSU

Staff Report to the Board

Portland State University seeks Board authorization to offer a program leading to a master's degree in writing, effective fall term 1999. The proposed program comprises three strands: nonfiction writing, professional/technical writing, and creative writing. Graduates from each strand will be prepared to pursue writing careers in any number of fields. Those from the professional/technical strand will understand and be able to manage publications in business and industrial settings. They will have command of rhetorical strategies necessary for success as persuasive and ethical technical communicators, and will be able to use multimedia and other technology alternatives for transmission and management of documentation. Creative writing graduates will understand creative genres and forms, and will be able to produce book-length examples at a professional level within their chosen concentration (fiction or poetry). Graduates from the nonfiction writing strand will be able to write effectively for a variety of popular media, such as magazines, newspapers, newsletters, and the Internet. Most course writing will be connected to the goal of publishing their work; students will have ample mentoring in the process of querying editors and submitting stories.

Only qualified writers will be admitted to the program; prospective students will submit a portfolio of representative written work as part of the admissions process. Workshop formats, peer review and editing, and portfolio development will be a part of all the strands. Students will complete 48 credits, which will include application of their knowledge and expertise in community settings (e.g., internships). Provisions for part-time, evening, and placebound students are integral to this program. The program will also be included in PSU's degree-completion offerings off campus (e.g., at the CAPITAL Center in Beaverton).

Currently, the Portland metropolitan area offers no graduate program in writing. Two other OUS programs are similar but not identical to the proposed program. The University of Oregon offers an M.F.A. in creative writing. Oregon State University offers a master's degree in scientific and technical communication, which is designed for students who intend to have communication management responsibilities in business, industry, government, and education. Both OSU and UO support PSU's proposed program, viewing it as complementary rather than competitive.

In fall 1998, an external review of the program was conducted. The review team unanimously supported program implementation, noting among the program strengths the vast student and employer demand, innovative program format, and program alignment with PSU's urban mission. The team applauded the important role of published writers in the program; they will provide real-world guidance and information to the students. These adjunct faculty are drawn from such fields as journalism, public relations/communications, technical communications, and fiction writing (novelist). The review team recommended some program resource modifications, which PSU has embraced. Among these are anchoring each strand with two tenured and/or tenure-track faculty, and increasing the budget for library resources.

The resources for this program will be primarily assigned through internal reallocation. Academic Council favorably reviewed this program at its February 1999 meeting.

Staff Recommendation to the Board

Staff recommends that the Board authorize Portland State University to establish a program leading to the M.A./M.S. in Writing, effective fall term 1999, with a follow-up review to be conducted by the OUS Office of Academic Affairs in 2004-05.

BOARD ACTION:

B.A./B.S., ENVIRONMENTAL SCIENCE, UO

Staff Report to the Board

The University of Oregon proposes to offer this degree as a complement to the heavily subscribed new liberal arts major in Environmental Studies. The proposed program will complement the Environmental Studies baccalaureate program, formally recognizing and responding to student demand for greater scientific understanding of environmental issues. Both programs provide a strong interdisciplinary perspective on the relationship between humans and nature. However, the Environmental Studies major serves students wishing to focus in such areas as policy, planning, sustainable development, environmental justice, or social theory. The proposed Environmental Science major will better serve students desiring a deeper understanding of the science behind these environmental issues.

The goal of the program is for graduates to be cognizant of major environmental issues and to develop an understanding of (1) the nature and scope of the forces underlying environmental problems/issues, (2) the various approaches used to bring environmental issues to the public's attention, and (3) the methods and approaches used to solve these problems. Students will be required to complete 84 credits of science and 20 credits of environmental coursework in the social sciences and humanities in addition to the other baccalaureate-degree requirements. Students must also complete an experiential-learning requirement, such as one term of study at a field station (e.g., Oregon Institute of Marine Biology, Malheur Field Station), research with a faculty member in environmental sciences, or an approved internship.

OIT, PSU, OSU, and SOU have environmental programs for undergraduates, each somewhat different from the other in faculty expertise, curriculum, and other career outcomes. These programs are well subscribed. For example, UO currently estimates 500 majors in Environmental Studies. The proposed program builds on UO's significant strengths in the physical and life sciences as well as its unique faculty expertise. Given the intense focus on environmental issues in Oregon, the United States, and the world, UO considers the proposed program to be a very relevant degree.

Business services in the environmental field are expected to reach $200 billion by the year 2000. Consequently, employment opportunities flourish for environmental professionals. Entire books are devoted to the subject (e.g., Environmental Jobs for Scientists and Engineers, Basta: 1992; Environmental Careers, Warner: 1992; The New Complete Guide to Environmental Careers, Sharp: 1993). Numerous Web pages target environmental careers. Annual national conferences serve as educational and informational forums regarding environmental employment opportunities, issues, and trends (e.g., National Environmental Career Conference, October 23­25, 1997, Boston, Massachusetts). In short, employment opportunities are anticipated to be significant for graduates of this program. Oregon and the Pacific Northwest are in the forefront of environmental concern and management. Students graduating from this program would have scientific career options in such fields as conservation biology, climate, pollution prevention and abatement, and ecosystem restoration and management. These graduates would be competitive for jobs with government agencies, environmental consulting firms, and various businesses requiring environmental sciences. In addition, the degree would prepare students for careers in teaching and for any number of graduate and professional programs such as geology, biology, environmental science, or law.

Current resources are sufficient to offer this program. It is anticipated that 25-50 students will graduate each year from the program. Academic Council favorably reviewed this program at its February 1999 meeting.

Staff Recommendation to the Board

Staff recommends that the Board authorize the University of Oregon to establish a program leading to the B.A./B.S. in Environmental Science. The program would be effective spring term 1999, and the OUS Office of Academic Affairs would conduct a follow-up review in the 2004-05 academic year.

BOARD ACTION:

CERTIFICATE, GLOBAL MANAGEMENT, UO

Staff Report to the Board

The University of Oregon's Charles H. Lundquist College of Business proposes to offer this certificate to undergraduate business students, allowing them to focus on international business issues in addition to their traditional concentration of study. (Currently, two areas of concentration are available to students: business administration and accounting.) To earn the certificate, students would need to successfully complete a core of international business courses (International Finance, Managing Across Borders, International Marketing), 24 credits in an approved area study (e.g., Asian Studies, European Studies), and two years of university-level foreign language study that complements the chosen area of study. Students are also strongly encouraged to participate in an approved international experience. (Last year, approximately 50 business students participated in a university-approved international program.)

It is widely recognized that business endeavors extend beyond domestic boundaries. Students who earn this certificate will be better prepared for the realities of the business world; consequently, employment opportunities should be strengthened by the addition of this certificate.

Resource requirements for implementation of this program are minimal. Coursework and faculty are in place. A small amount of additional time will be directed toward administrative processes relating to the certificate.

Academic Council favorably reviewed this program at its February 1999 meeting.

Staff Recommendation to the Board

Staff recommends that the Board authorize the University of Oregon to establish a program leading to the undergraduate certificate in Global Management, effective fall term 1999.

BOARD ACTION:

CERTIFICATE, SECOND LANGUAGE ACQUISITION & TEACHING, UO

Staff Report to the Board

The University of Oregon proposes to offer an undergraduate certificate in Second Language Acquisition and Teaching, effective fall term 1999. The certificate focuses on the theory of second language acquisition and teaching and its application in pedagogical settings. The program consists of 12 credits in second language acquisition theory and methodology, 8 credits in linguistic description of a target language, and 3-4 credits in a practicum, internship, or supervised tutoring. Students who successfully complete this program will have a solid grounding in developmental, cognitive, psycholinguistic, and sociocultural issues in language acquisition and their implications for effective teaching for the pronunciation, vocabulary, and structure of a language. In addition, they will know structural aspects of a specific language and have an understanding of cross-cultural issues that affect language acquisition and communication generally. The proposed certificate is not designed to provide public school teacher licensure per se.

There are no similar programs in Oregon that offer an undergraduate certificate in second language acquisition and teaching. To some extent, the program will overlap with the PSU certificate in teaching English as a second language, in that both programs are open to students from a variety of majors as well as to postbaccalaureate students. However, the PSU program is specific to English as a second language.

The need for such a program is well documented, both by the number of inquiries the UO Linguistics Department receives each term as well as by the growing need for professionals with an understanding of second language acquisition and teaching.

The certificate should appeal particularly to students majoring in linguistics, foreign languages, international studies, and English, but it is designed to be useful and accessible to students in any major. Earning this certificate will enhance any number of pursuits: staffing adult language programs, augmenting teacher training, strengthening professional opportunities, etc. This would also be a useful addition to international students who intend to return to their home countries and teach language courses. The UO anticipates 10-20 new students will enroll each year.

The program will have minimal budgetary impact because it relies on courses and faculty already in place. The major additional administrative and teaching obligation is the placement and supervision of students in practicum or internship opportunities. A minimal amount of clerical work will also be required to implement this certificate. Any budget impacts will be handled through internal reallocation.

Academic Council favorably reviewed this program at its February 1999 meeting.

Staff Recommendation to the Board

Staff recommends that the Board authorize the University of Oregon to establish a program leading to the undergraduate certificate in Second Language Acquisition and Teaching, effective fall term 1999.

BOARD ACTION:

PERFORMANCE REPORT

Staff Report to the Board

Since January 1997, the Board of Higher Education has provided leadership in identifying four overarching goals, along with measures and indicators of achieving these goals. The purpose of this effort is to emphasize results in guiding public higher education in Oregon. Indicators were adopted in November 1997, followed by System and institution reports of baseline performance in March 1998 and June 1998, respectively. In the June 1998 report, campuses identified targets for improvement and outlined initiatives to close the gap between current performance and desired results. These initiatives often included the need to isolate influences that would reinforce growth in the desired directions.

In addition to the aforementioned documents that would be used internally to guide and monitor improvement, the Chancellor directed staff to develop an abbreviated performance report for the legislators and citizens of Oregon that would communicate how OUS is "doing business differently." On March 19, 1999, a panel was assembled to react to a draft of the first OUS baseline performance report. This panel included three Board of Higher Education members (Herb Aschkenasy, Diane Christopher, and Jim Willis), three external representatives (Rob Miller, Diana Snowden, and Jeff Tryens), Chancellor Cox, Vice Chancellor Clark, and other Chancellor's staff. The panel reviewed the indicators and the baseline performance report. Some of the comments and observations offered during the meeting include:

  1. Be clear about the purpose of the report card--is it to say wonderful things about OUS or is it to get the legislature to act and fund?
  2. Focus on results--limit process and input indicators in favor of specific results.
  3. Add improvement targets.
  4. Adjust arrow directions--some trends are identified as "steady" when performance is "down" (e.g., deferred maintenance).
  5. Be more specific and take risks--indicate when performance is not where it should be and avoid using "gloss-over" language.
  6. Limit the number of indicators--for example, in employability, delete "so what" ones (e.g., employment of recent graduates) and replace with degree production in areas where it is not sufficient (e.g., engineering, computer science, special education fields) and tie to targeted programs and requests for legislative funding.
  7. Keep four-fold design but have two companion pieces (System and institution) that provide the detailed graphs and targets for the indicators listed in the report card.
  8. Ask legislators which indicators are of interest to them.
  9. The incentives for focusing on results need to be higher.

Based upon these comments, the baseline performance report was revised to include 1997-98 performance, descriptions of trend direction (usually ten years, but fewer for indicators that needed baselines built), and a target for improvements for 2005-06. Achieving these targets presumes full funding of the resource allocation model over the next two biennia. The content of the report follows.

Access Goal: To improve access for qualified Oregonians to degree programs

Higher-ability freshmen enrolled (high school GPAs 3.75 and higher)
1987-88 performance:      11%
1997-98 performance:      19%
Trend direction:                 Increasing
2005-06 target:                +30%

Ethnic/minority students enrolled
1987-88 performance:      7.9% of total enrollment
1997-98 performance:      12.6% of total enrollment
Trend direction:                 Increasing
2005-06 target:                 Maintain proportion

Oregon public/private high school graduates enrolled
1987-88 performance:      23%
1997-98 performance:      20%
Trend direction:                Maintaining performance
2005-06 target:                +10%

Community college transfers enrolled
1987-88 performance:      2,598
1997-98 performance:      2,428
Trend direction:                Maintaining performance
2005-06 target:                +5%

Quality Goal: To strengthen existing quality of academic programs

Bachelor's degrees started and completed
1987-88 performance:       49% of freshmen and 57% of community college transfers entering in 1987 who graduated by                                          1993
1997-98 performance:       55% of freshmen entering 1991 who graduated by 1997 and 63% of community college                                                  transfers entering 1989 who graduated by 1995
Trend direction:                 Increasing
2005-06 target:                 +6%

Professional licensure scores (accounting, engineering, pharmacy, social work, veterinary medicine)
1993-94 performance:      At or exceeds national (or state) pass rates
1997-98 performance:      At or exceeds national (or state) pass rates
Trend direction:                Sustaining high performance
2005-06 target:                +3%

Rated higher education "very good" or higher
1995-96 performance:     72% of 1994-95 graduates
1997-98 performance:     62% of 1996-97 graduates
Trend direction:                Developing baseline
2005-06 target:               +15%

Cost-Effectiveness Goal: To ensure cost-effective operations on each campus

Maintain current fund balance
1987-88 performance:     4% of current fund expenditures
1997-98 performance:     7% of current fund expenditures
Trend direction:                Increasing
2005-06 target:               +20%

Sponsored research and other support expenditures
1992-93 performance:    $140.3 million
1997-98 performance:    $173.4 million
Trend direction:               Increasing
2005-06 target:              +5% ($27 million)

Maintenance backlog accumulated
1987-88 performance:    10%
1997-98 performance:    18%
Trend direction:               Decreasing
2005-06 target:               Not worsen

Employability Goal: To meet Oregon's workforce needs for capable graduates

Graduates completing internships
1994-95 performance:    51% of undergraduate students
1997-98 performance:    57% of undergraduates; 69% of graduate and professional students
Trend direction:               Developing baseline
2005-06 target:              100% (provide opportunity for all to participate)

Degrees awarded
1987-88 performance:    11,191
1997-98 performance:    12,796
Trend direction:               Maintaining performance after initial increase
2005-06 target:               +5% (650)

Engineering, technology, computer science, mathematics, and science degrees awarded
1987-88 performance:    1,983
1997-98 performance:    2,084
Trend direction:               Increasing
2005-06 target:              +13% (270)

Teacher education degrees in current shortage areas awarded (special education, counseling, bilingual, speech therapy, foreign languages)
1987-88 performance:    167
1997-98 performance:    470
Trend direction:              Increasing
2005-06 target:              40% (+200)

In addition to a graphic presentation of this material, a supplemental report that provides more detailed trend data will be available to the legislature and public upon request.

(No Board action required)

STUDENT RACIAL/ETHNIC DIVERSITY: TRENDS IN ENROLLMENT, GRADUATION, AND RETENTION

Executive Summary

The Oregon University System (OUS) continues to make progress in relation to the matriculation, persistence, and graduation of students. However, the progress is more significant for some groups of students than for others.

Five-year total (undergraduate and graduate) enrollment trends within the OUS indicate that the representation of students of color increased from 11.5 percent of the enrollment in fall 1993 to 12.4 percent of the enrollment in fall 1998. There were relatively slight increases or decreases within each racial/ethnic group. Asian/Pacific American student enrollment increased proportionately from 5.9 percent in fall 1993 to 6.3 percent in fall 1998, and Hispanic/Latino student enrollment increased proportionately from 2.7 percent in fall 1993 to 3.2 percent in fall 1998. A slight proportionate increase in total enrollment--from 1.3 percent in fall 1993 to 1.4 percent in fall 1998--was experienced among American Indian/Alaskan Native students. Slight declines in proportionate enrollment were experienced among African American students (from 1.6 percent in fall 1993 to 1.5 percent in fall 1998) and European American students (from 74.7 percent in fall 1993 to 73.5 percent in fall 1998).

Students of color received 8.4 percent of all degrees awarded during 1992-93, and 11 percent of all degrees awarded during 1997-98. Total graduation rates during the period from 1992-93 to 1997-98 increased proportionately for American Indians/Alaskan Natives (from 1.1 percent to 1.2 percent of degrees awarded), Asian/Pacific Americans (from 4.2 percent to 5.7 percent of degrees awarded), European Americans (from 73.5 percent to 74.4 percent), and Hispanics/Latinos (from 1.8 percent to 2.8 percent of degrees awarded). Proportionate graduation rates for African Americans during this period remained at 1.3 percent.

Six-year retention rates for cohorts of first-time freshman students who entered OUS institutions in fall 1987 and fall 1992 indicate enhanced persistence among African American, American Indian/Alaskan Native, and European American students. The six-year retention rates for Asian/Pacific American students declined, and the rates for Hispanics/Latinos remained essentially stable for both cohorts. Nevertheless, six-year retention rates for the fall 1992 freshman cohort, by race/ethnicity, range from a low of 39.2 percent to a high of 59.7 percent, suggesting a need for enhanced retention among all OUS students. The report includes a recommendation that a work group be convened to (1) undertake analyses to better understand the variable retention rates among many groups of students, and (2) consider additional strategies for addressing retention concerns that will further enhance existing institutional efforts.

Copies of the full report are on file in the Board's office.

(No Board action required)

FACULTY RACIAL/ETHNIC DIVERSITY AND FACULTY DIVERSITY INITIATIVE UPDATE

Executive Summary

The American public continues to view the concept of diversity as an important component of the culture. A recent study found that 75 percent of respondents nationally indicated that colleges and universities should take explicit steps to ensure diversity among faculty. Oregon University System (OUS) institutions remain committed to enhancing diversity among faculty, students, and staff. This report provides an overview of the progress made toward enhanced diversity within faculties at OUS institutions during the period since 1995-96, and also provides an update pertaining to the OUS Faculty Diversity Initiative (FDI) program that was implemented in 1995-96. The FDI program has been a successful asset in the enhancement of representation relating to faculty of color within the OUS.

Gains have been made in the representation of faculty of color within the OUS. Faculty of color, among all (instructional/research/public service) full-time faculty, represented 8.4 percent of the population in 1997-98. This figure is up from 7.5 percent in 1995-96, reflecting an absolute gain of 8.5 percent during the two-year period. In the subset of instructional faculty (which represents the largest group among all full-time faculty), the representation of faculty of color has increased from 7 percent of the population in 1995-96 to 9.6 percent of the population in 1998-99, reflecting a gain of 35 percent during the three-year period. Given the relative recentness of the attraction of greater numbers of faculty of color, the largest concentration of faculty of color is found at the assistant professor rank, representing entry-level positions, within the OUS. Analyses pertaining to the progress made within each racial/ethnic group, and comparisons with national data and data from selected Western states, are included within the report. In most instances, the representation of faculty of color within the OUS is lower, proportionately, than national figures. The exception to this finding relates to the representation of American Indian/Alaskan Native faculty.

Recommendations are provided relating to (1) the continuation of efforts to attract faculty from underrepresented groups; (2) further facilitation of positive environments in which faculty are encouraged to advance through the ranks; (3) continuation of the FDI program; (4) future analyses concerning the representation of part-time faculty and full- and part-time staff; and (5) implementation of modified race/ethnicity reporting guidelines as a result of changing federal standards.

Copies of the full report are on file in the Board's office.

(No Board action required)

IMPACT OF THE OREGON UNIVERSITY SYSTEM ON OREGON'S ECONOMY

Staff Report to the Board

The performance measures and indicators adopted by the Board of Higher Education in November 1997 included a plan for phasing in their implementation. Those indicators for which the Oregon University System (OUS) already maintained data (e.g., graduation rates of entering freshmen, participation rate of Oregon high school graduates, and sponsored research expenditures) were included in the first phase. Indicators for which baselines needed to be developed included customer satisfaction, recent graduate employment, undergraduate general abilities, completion rates for graduate and professional students, and economic impact. Since November 1997, staff in the Chancellor's Office and campuses have worked together to identify ways to collect data systematically for those indicators lacking baseline data.

The OUS did not have in place a systematic way to determine the economic impact of OUS on the state of Oregon. For several years, two universities using two different econometric models have looked at how dollars invested in their institutions impact the economies of their local communities and Oregon. The other campuses have not conducted similar studies. Therefore, Chancellor's staff worked with campus representatives to identify the parameters of a study and to adopt a common econometric model to establish the baseline for the System and the institutions.

The study "Economic Impacts of the Oregon University System" was conducted by ECONorthwest, an independent research firm with offices in Portland and Seattle. The study examined the impact of OUS's seven institutions on Oregon's economy from three perspectives: (1) the short-term boost from the direct spending of OUS institutions, their students, and vendors; (2) the projected economic impact of an incremental increase in the state's investment; and (3) the knowledge benefits of higher educational attainment levels for the individual and the state of Oregon. It was not within the scope of this study to investigate how universities create and grow businesses and produce research breakthroughs that spur new industries. These economic benefits deserve consideration in another study.

Key Findings Summary

Oregon's public universities return $2 for every $1 of state investment, according to the study conducted by ECONorthwest. The net economic impact associated with current operations is nearly $600 million a year, compared with the current annual state appropriation of $297 million. OUS doubled the state's annual investment.

Most of the public universities' direct spending dollars stay in Oregon: 70 percent of goods and services, 87 percent of capital expenditures, and 98 percent of wages and salaries.

OUS provided $583 million in sales, $436 million in income to Oregon workers, and supported nearly 12,000 new nonuniversity full-time jobs.

The OUS students who entered the System in fall 1997, and others who benefit from their earning power, will return 130 percent more to the state treasury than the state invested in their higher education.

Methods

Economic impacts include the direct spending (original purchase) by the universities plus the spending that circulates through the economy. This indirect activity is often called the "multiplier effect." The study looked at impacts on goods and services sold by Oregon firms, wages and salaries earned by Oregonians, and jobs created by the economic activity. It did not look at the effects of OUS spending that accrue to businesses and workers outside the state.

Findings Detail

Calculating the Short-term Boost to Oregon's Economy. The total economic activity associated with OUS expenditures in FY 1998 included:

The total spending by employees, students, visitors, and vendors:

Most of OUS's direct spending took place in Oregon--70 percent of goods and services, 87 percent of capital expenditures, and 98 percent of wages and salaries go to Oregon workers.

The net impact of the existence of OUS on Oregon's economy was determined by subtracting state appropriations and student-related offsets from the gross effects estimated above (e.g., if the students lived and spent money in Oregon but didn't attend OUS) from OUS's expenditures.

OUS doubled the state's annual investment. The net economic impact associated with current operations is $583 million, compared with the current state appropriation of $297 million.

OUS generated a substantial short-term boost to Oregon's economy. In FY 1998, OUS:

Projecting Returns on Additional State Investments. OUS has been very successful in using state funding as seed money to generate other revenue. Assuming that state appropriations are needed to leverage other sources of revenue and OUS remains as successful in leveraging outside funds, ECONorthwest projects that every dollar of state support for higher education in Oregon results in $2 of total spending in the state's economy. For example, a $50 million annual incremental increase in state appropriations to OUS would yield an additional $100 million in new, net economic output annually for Oregon.

Projecting Knowledge Impacts of Higher Educational Attainment. Some of the benefits associated with acquiring knowledge include greater lifetime earnings of college graduates compared with high school graduates, greater lifetime earnings of advanced degree completers than bachelor's graduates, and greater tax payments of college graduates. The higher earning potential of college graduates is well documented, as are the increments in lifetime earnings by educational level and gender.

The state will invest $191 million for those students entering OUS in 1997 over the course of their studies. The fact that adults who have completed higher educational attainment levels earn more over their lifetimes is well documented. (The average adjusted lifetime earnings of someone who completes a bachelor's degree is $941,248, compared with $618,681 for someone with only a high school diploma.) The resulting tax benefit to Oregon is $247 million (if 62 percent of these graduates remain in Oregon, which is the current proportion). This means that the OUS students who entered the System in fall 1997 will return 130 percent more to the state treasury than the state invested in their higher education.

Conclusion

Some clear impressions emerge from this effort to understand the impact that the Oregon University System makes on Oregon's economy. The universities have been very successful in using state funding as seed money to generate other revenue. Public universities are a major source of jobs. Not only do they employ 14,000 individuals directly, they generate additional nonuniversity jobs in Oregon's communities indirectly through their spending. Each dollar invested in public higher education generates $2 of net economic impact. The graduates who earn more because they are qualified for higher-paying jobs yield large tax revenues.

Copies of the full report are on file in the Board's Office.

(No Board action required)

STRATEGIC COMMUNICATIONS PLAN UPDATE

Background

The Oregon University System has been working with the firm of Robertson, Grosswiler & Company (RGC), Portland, to assist the Office of the Vice Chancellor for Corporate and Public Affairs and the individual institutions in the development of a strategic communications plan.

Work on the plan commenced in January 1999 and is moving toward a review of a draft plan at the end of April 1999.

Objectives

The plan's objectives are to assure that OUS is communicating clearly and consistently to its key audiences the messages that accurately describe the university system. These objectives support the overall objective of continuing to build a university system that will:

Progress To Date

In the initial phase of the project, RGC has conducted research on public higher education, including a review of existing public opinion survey work, how OUS now communicates with its publics, and how comparable university systems communicate.

Based on this work, RGC, working with OUS staff, is preparing the draft strategic communications plan with specific recommendations on how to reach key audiences with the messages that accurately convey the objectives of OUS.

Research Results

Oregon is starting from a good base, but can do a better in providing quality higher education at its public universities.

The public's view of the university system remains about the same as it was earlier in the decade with some notable differences.

(No Board action required)