The University of Oregon shared mixed financial news during Board of Trustees meetings this week.
UO reported that its revenue grew faster than its expenses last fiscal year, but was still running behind over a four-year span. The school is now anticipating a $2 million budget shortfall this fiscal year.
University President Karl Scholz told trustees Wednesday that UO is facing a difficult and unpredictable landscape moving forward.
“Formerly solid out-of-state recruitment pipelines are being upended by increased competition,” said Scholz. “A lot of my positivity about the future is predicated on our ability to recruit students and solidify budgets.”
UO Budget, Finances and Data Analytics Vice President Brian Fox said Tuesday that there is good news: the school’s newest cohort of students is taking more credits than expected. Fox said that could generate an extra $5.8 million this academic year if trends hold.
However, Fox said the potential gains are partially offset by two factors that reduce revenue: lower out-of-state enrollment, and greater university discounts for student fees.
Fox also said UO students consistently take around the same number of credits before graduating, so the cohort that’s taking more courses may end up leaving the university sooner.
“We are front-loading some of those credits, which means this is a temporary revenue boost,” said Fox.
Meanwhile, UO’s Chief Financial Officer Jamie Moffitt told trustees the school has more debt than other institutions with similarly sized budgets, but that's not necessarily a major issue.
She said the debt is partially due to construction projects that are intended to reimburse the school through additional revenue in the future.
“It’s really the strategic question of what are you using that funding for, and do you have a way to pay it back?” Moffitt said Tuesday.
The meeting came as Oregon lawmakers have discussed possible reductions to college funding, and after UO announced dozens of layoffs this fall.
During public comment, the university’s union leaders called for more shared governance moving forward.
“Our unions represent voices that this board needs to hear to make informed and sound decisions,” said August Harrell with the Graduate Teaching Fellows Federation. “As our university is sure to face future challenges, it is essential that the council be included in Board of Trustees meetings as an active voice and not merely after-the-fact commenters.”
In addition to financial discussions, the Board of Trustees listened to reports on capital projects and increased press outreach. They voted to approve new masters degrees in data science and cybersecurity, as well as a Bachelor of Education in Behavioral Health.
