Sent: March 11, 2009, 4:47pm

Subject: Budget update

The following message is forwarded on behalf of Senior Vice President and Provost Jim Bean -

Colleagues:

Last week was a State Board of Higher Education meeting. Some of the ideas raised at that meeting have been refined early this week. Below are a few highlights:

• 1. Appointment reductions: The Chancellor's Office has mandated that each campus encourage people in specified leadership positions to take voluntary appointment reductions for the remainder of this year. We are refining the details and will send memos to affected employees Thursday. President Frohnmayer has volunteered to take six days reduction, I am taking five days reduction, and others in specified positions are encouraged to take four. In response to numerous requests by faculty and staff to participate in the solution of these challenges, we are developing a mechanism for others to volunteer support. More information on this in early April. Funds saved from these appointment reductions will reduce impact to academic programs caused by the recent $6.9M rescission of current year funds. It is too early to predict if such a program will be necessary next year.
• 2. The State Board of Higher Education approved our request for a tuition increase in Spring of $150 for resident and $350 for nonresident students. This will contribute about $2.1M to the $6.9M rescission in current year funds after remitting 30% of the proceeds for need-based financial aid. I have been asked why we did this and OSU did not. Answer is that they receive approximately $8500 per student in state funding and we receive approximately $3500 per student in state funding. They had larger reserves to use for the rescission. Note that we believe that OSU funding levels are entirely appropriate.
• 3. Our proposal for a major in Latin American Studies was approved. However, no additional new program proposals will be forwarded to the State Board until (likely) September. This is mandated by the State Board and Provost's Council.

Please let me know if you have questions.

Regards, Jim