Clark Document

(Revised 5/23/94)

Incidental Fee Guidelines

University of Oregon

A. Introduction

The student incidental fee has been authorized by the Oregon Legislature to provide for the "cultural and physical development" of students. In authorizing the incidental fee, the Legislature recognized that students have a legitimate interest in partici pating in the determination of the level and allocation of the fee, and the Legislature also provided recognized student governments the right to recommend fee levels and allocation to the Oregon State Board of Higher Education (OSBHE). The provisions ou tlined herein follow from ORS and from the Board's delegation of authority, and assignment of responsibility to the institutional executive administering the affairs of the institution in accordance with the Board's policies, plans, budgets, and standards ; and the Board's rule (OAR 580-10-090) that representatives of duly organized and recognized student governments shall (1) participate with the institutional executive in the formulation of guidelines and procedures for budgeting, allocation, and amount of incidental fee income, to be derived at the institution, and (2) shall participate in the decisions on budgetary allocations, and determination of incidental fee income based upon said guidelines. The procedures set forth in this document are based on student government rights and responsibilities under ORS, OAR, policies of the OSBHE and the University of Oregon, relevant opinions of the Oregon Attorney General, and the ASUO Constitutio n. The University of Oregon President (hereinafter President) and the ASUO, acting through its President and Student Senate, have agreed to these guidelines and procedures in order to achieve clarity and fairness in the fee recommendation process. T his document is based on the principles that the responsibility for allocating student incidental fees is an essential interest of a recognized student government and that incidental fee allocation decisions must comply with legal obligations and must not substantially interfere with the University's ability to carry out its educational mission.

B. Recognition and Delegation

The University of Oregon acknowledges the right of recognized student government, in exercise of its delegated power and through its constitution, to elect a body to make fee recommendations to the OSBHE. That body is now the ASUO Student Senate. Anyone serving on a fee recommending body must be chosen in a fair and equitable manner. There shall also be three Finance Committees each of which shall recommend a lump sum budgets to th e Student Senate for fee allocations to one of the three Major Programs (ASUO Programs, Erb Memorial Union, and the Athletic Department) as follows: the ASUO Programs Finance Committee for ASUO Programs, EMU Board for the Erb Memorial Union, and the Athletic Department Finance Committee for t he Athletic Department. Election, appointment, and replacement processes for the Student Senate representatives shall be set forth in the ASUO Constitution. The ASUO recognizes the legitimate interest of both the OSBHE and the University administration in maintaining an efficient fee recommendation and establishment process. The administration and the ASUO, therefore, agree that unless disagreements arise: the normal transmittal process will be for fee recommendations to be provided to the University President in writing for approval and transmittal to the Chancellor for compilation and to the OSBHE for approval. The ASUO retains its statutory right to make recommendations directly to the OSBHE. Applicable provisions of state law and OSBHE regulatio ns will be followed in the development, transmittal, and expenditure of incidental fees.

C. Procedures: Meetings and Student Membership

All meetings of incidental fee committees and subcommittees thereof shall be conducted in accordance with the Oregon Public Meetings Law. For purposes of determining application of public meetings law, a subcommittee of the Student Senate is defined as one of the three Finance Committees (ASUO Programs Finance Committee, EMU Board, and the Athletic Department Finance Committee), or any two or more members of the Student Senate, or the Finance Committees meeting to deliberate on an issue before or inten ded to come before the Student Senate for decision. Notice of all meetings must be provided at least 24 hours in advance to the Oregon Daily Emerald and any other media requesting notice. Public notice of hearings to determine budget recommendations shall be published in the Emerald.
All members of the student senate and all student members of the finance committees, or subcommittees thereof, shall be students maintaining at least half-time status (except summer).

Timelines and Schedules

No later than January 15 of each year, the President (or designee) of the University will notify the Student Senate and the ASUO President of the date by which he or she needs to have fee recommendations for transmittal to the Chancellor and the OSBHE. T he Finance Committees shall each establish and publish a schedule of hearings affording at least one public hearing on the budget request of each program under its jurisdiction seeking funding. The Student Senate shall also establish and publish a schedu le of hearings affording at least one public hearing on each lump sum budget recommended by the three Finance Committees. Copies of the hearings schedule and notification of any changes shall be provided to the ASUO Executive, the affected program, the E merald and any other media requesting notification, the Director of the EMU, the Vice Provost for Student Affairs, and the Athletic Director where affected.
Scheduling of hearings shall be at the discretion of the Student Senate and Finance Committees, except that hearings on allocation requests from the EMU and the Department of Intercollegiate Athletics shall be held at a time mutually convenient to those d epartments and the Finance Committee. Hearings will be held after development of their preliminary departmental budgets and at least three weeks prior to the President's fee recommendation deadline.

Hearing Format

Within the context of the ASUO Programs Finance Committee, the Athletic Department Finance Committee, and the EMU Board hearings process, each program within a Major Program must submit a goal statement which allows each Finance Committee to determine fo r itself whether the program or activity meets the statutory standard of ORS 351.070(1)(d) which authorizes the OSBHE to collect fees to fund programs for the cultural and physical development of students. Any request for allocation for other than ongoi ng programs or projects must also be accompanied by a statement of goals which allows each Finance Committee to consider the appropriateness of that request under ORS 351.070(1)(d). The Student Senate and all Finance Committees will only consider funding programs or projects they believe meet the statutory standard.
Other hearings procedures shall be at the discretion of the Student Senate and Finance Committees, and shall be made available in writing to all hearing participants prior to the beginning of the annual budget hearing process. The Student Senate and Fina nce Committees may each, at its own discretion, hold preliminary hearings for, among other things, seeking information or clarifying goals.
Documents submitted to the Student Senate and Finance Committees and their decisions regarding approval of both programs goals and levels of funding shall be forwarded to the ASUO President and then to the University President (or his or her designee).

Ballot Measures

Multiple-year funding commitments shall be authorized only through the initiative or referendum process and approved by direct vote of the student body. Multiple-year funding commitments can only be approved for services for students provided by agencies or programs external to (not managed by) the EMU, ASUO, and Athletic Department or for capital projects.
Annual and multiple-year funding approved by direct vote of the student body need not submit their budget requests to the Student Senate or Finance Committee. The results of any such vote in favor of funding shall be included by the Student Senate and Fi nance Committees in their fee recommendations. A vote against such funding does not prohibit any Finance Committee from recommending annual funding provided such a recommendation is consistent with ASUO policy.

D. Recommendation Format and Criteria

Incidental fee allocation recommendations shall be aggregated by three major categories: (1) EMU activities; (2) educational, cultural, and student government activities; and (3) Intercollegiate Athletics. Each of these categories is considered a Major Program. For the purpose of this document, EMU activities shall be known as the Erb Memorial Union; ASUO educational, cultural, and student government activities shall comprise the ASUO Major Program; and Intercollegiate Athletics shall be known as the A thletic Department. A distinct activity within a Major Program that has been funded for six consecutive years is considered a Traditionally Funded Program (TFP). Capital projects and services for students funded in whole or part with incidental fees typ ically will be included in the category of ASUO programs (category 2).
A decrease in the level of fee support for any Major Program shall not exceed 10% of the preceding year's allocation unless the Program voluntarily requests such a reduction. The 10% reduction limit may be exceeded if either the University President or t he student body in an initiative or referendum, approve such a reduction. The same criteria shall be applied to recommendations concerning TFPs, except that the allowable reduction shall be 25%. A recommendation to reduce by more than 25% shall require the unanimous vote of the Finance Committee responsible for allocating fees to the affected TFP.
The ASUO and the University, recognizing that fiscal stability is essential to long-term planning, agree that in any situation involving substantial budget decreases in Major Programs or TFPs, both the ASUO and the University shall assist the affected pro gram in attempting to find or develop additional sources of funding. This agreement is not a commitment to provide such funding, nor is it intended to interfere with the Student Senate's or any Finance Committee's right or the President's inherent right to recommend a budget reduction for reasons of policy. Any reductions in Major Programs or TFPs shall be made in a manner consistent with the fulfillment of any existing contractual obligations of a program or University department.
As a partial means of helping to realize sound fiscal management, the Student Senate, ASUO Executive, and University administration shall adopt sound financial practices, including preparation of current service level budgets as a base for consideration b y the Finance Committees.
Both an appropriated and unappropriated reserve fund shall be maintained. The appropriated reserve fund, or Contingency Fund, shall include an unallocated reserve budgeted by the Student Senate which shall be augmented each fiscal year with ASUO Programs funds which have been appropriated but unexpended during the prior fiscal year or carried over from the prior fiscal year. The Contingency Fund will be used to meet unexpected needs of programs as well as other minor emergencies. Use of the Contingency Fund shall be in accordance with the usual budget procedures of the Student Senate and the ASUO Executive.
An unappropriated Reserve Fund shall be maintained with incidental fee income from any over-realized enrollment, interest earned by any student incidental fee accounts, and any other miscellaneous incidental fee incomes. The unappropriated Reserve Fund s hould be maintained at a level equal to a least 5% of the current fiscal year's total incidental fee budget to insure against fee shortfalls due to under-realized enrollment and/or other unforeseen contingencies and to be considered as a supplement for th e following year's fee collections. An emergency allocation from the Reserve Fund must include certification of the unusual nature of the proposed expenditure(s) and have the recommendation of the Student Senate when sitting and must have the formal appr oval of both the ASUO President and the University President or his/her designee.
The Student Senate, in making its recommendation regarding the appropriate fee level to provide for the budgeted level of services, shall use enrollment and fee revenue estimates provided by the University. The University will attempt to provide to the S tudent Senate and ASUO Executive the enrollment and fee revenue estimates by November 15 and March 15 of each academic year. The Student Senate shall transmit its fee recommendations in writing to the University President (or his/her designee).
These procedures and criteria are not intended to limit the right of the student body to require other procedures, or to limit the power of the Student Senate, Finance Committees and ASUO Executive, provided those requirements or limits are not inconsist ent with this document and statute.

E. Appeals

The President shall notify the ASUO in writing within seven working days of receipt of the complete incidental fee allocation recommendation as to whether he or she disagrees with any portion of the recommendation and wishes to suggest changes or whether he or she approves the budget. In the event that the President suggests changes, the ASUO President shall respond in writing to the suggestions either affirmatively or negatively within seven working days of receiving them. If the ASUO President does no t respond, the President's suggested changes are accepted by the ASUO and become part of its recommendation. If the ASUO President does not agree with the President's suggested changes, the President and representatives of the Student Senate and ASUO Exe cutive shall meet and attempt to resolve the conflict. If agreement cannot be reached within ten working days, a Hearing Board then may be requested by either the ASUO President or the President. It shall be constituted pursuant to OAR 580-10-090(3)(h), and its recommendations considered by both the ASUO and the President prior to final fee recommendations being transmitted by the President to the OSBHE and the Chancellor.
Members of the Hearings Board shall not be members of the Student Senate or its staff, members of the Finance Committees or their staff, the ASUO Executive or its staff, the staff or management of the affected program or the immediate staff of the Univers ity President, but shall be constituted as required by 580-10-090(3)(h)(A). The Hearings Board shall select its own presiding officer and establish its own rules of procedure subject to the requirements of OAR 580-10-090(3)(h). The ASUO and the Presiden t agree that one ASUO representative and one Presidential representative shall be subject (after his or her nomination) to the approval of the non-nominating entity. Both parties shall notify the Hearings Board and each other within five working days an d in writing whether they accept or reject the recommendations of the Hearings Board.

F. State Board Action

The President shall confer with the Student Senate in making any necessary adjustments in the allocations, and communicate the final action on the proposed fees by the State Board of Higher Education to the Student Senate in writing within ten working day s after the final action is taken.

G. Amendment

This document and the delegation herein may be withdrawn or revised at annual intervals by the President after consultation between the parties or following a request by the ASUO. If the parties fail to agree, appeals may be made in accordance with the ap plicable provisions of OAR 580-10-090. Revisions shall not be made during the annual budget development process in such a way as to affect the process, except that agreement deadlines may be extended for mutual convenience. In order to insure fairness a nd equal application of standards during the budgeting process, revisions affecting the process shall be made prior to November 1 of the fiscal year in which the revisions are to have effect.