PSU Budget Update
Last week, following the legislature's release of the final budget numbers, Lindsay Desrochers addressed the campus in two meetings to discuss what the deficit means to Portland State. For those of you who went to a similar meeting a month ago, the news will be familiar. Those numbers were essentially the same ones PSU is still working with.
Numbers
Below are the numbers the university is working with to balance the budget. These include assumptions about both the actual deficit and the solutions--but they're working assumptions. Raising tuition is subject to approval, for example. So while these may well change, they're the best, most current numbers we have.
Losses
State reduction of 22%_____________________$28.4 million
Tuition revenue loss (capacity loss)_________$.8 million
Compensation
Tuition increase (13% res, 10% non-res)____$13.5 mil
Salary/FTE reductions (4.6%)________________$3.9 mil
Overhead charge increase (4%)_______________$1.2 mil
Summer session contribution increase_________$.5 mil
Campus closures, other reductions___________$2.0 mil
Services and supplies reductions (3%)________$.5 mil
Academic (instructional) reductions________$1.86 mil
Admin and Academic Support reductions_______$4.0 mil
Other admin reductions/revenue offests_____$1.74 mil
Looking Forward
It's worth noting that the salary reductions are a cut made by the state based on a calculation of PSU's total payroll. The $3.9 million figure represents 4.6% of that total, and the state will just take that off the top. How PSU manages to distribute those losses is another matter.
The AAUP collective bargaining team is moving forward with a list of priorities to protect the membership as we face these cuts. These include working to keep jobs on campus, preserving health coverage, shielding lower-paid members, and demanding a "snap back" to current wages--preferably with a cost of living adjustment. We also expect the the university to provide full disclosure and complete transparency about financial and budetary issues. Importantly, with any talk of salary cuts or freezes, we will expect the administration to address the other issues on our list for bargaining, including workload, working condition, and job security for fixed-term faculty. And finally, after the deficit has been addressed, we would expect that the university restore salaries first, before spending money on other projects or objectives.
We have a long way to go, and I'll keep you posted as things develop.
Numbers
Below are the numbers the university is working with to balance the budget. These include assumptions about both the actual deficit and the solutions--but they're working assumptions. Raising tuition is subject to approval, for example. So while these may well change, they're the best, most current numbers we have.
Losses
State reduction of 22%_____________________$28.4 million
Tuition revenue loss (capacity loss)_________$.8 million
Compensation
Tuition increase (13% res, 10% non-res)____$13.5 mil
Salary/FTE reductions (4.6%)________________$3.9 mil
Overhead charge increase (4%)_______________$1.2 mil
Summer session contribution increase_________$.5 mil
Campus closures, other reductions___________$2.0 mil
Services and supplies reductions (3%)________$.5 mil
Academic (instructional) reductions________$1.86 mil
Admin and Academic Support reductions_______$4.0 mil
Other admin reductions/revenue offests_____$1.74 mil
Looking Forward
It's worth noting that the salary reductions are a cut made by the state based on a calculation of PSU's total payroll. The $3.9 million figure represents 4.6% of that total, and the state will just take that off the top. How PSU manages to distribute those losses is another matter.
The AAUP collective bargaining team is moving forward with a list of priorities to protect the membership as we face these cuts. These include working to keep jobs on campus, preserving health coverage, shielding lower-paid members, and demanding a "snap back" to current wages--preferably with a cost of living adjustment. We also expect the the university to provide full disclosure and complete transparency about financial and budetary issues. Importantly, with any talk of salary cuts or freezes, we will expect the administration to address the other issues on our list for bargaining, including workload, working condition, and job security for fixed-term faculty. And finally, after the deficit has been addressed, we would expect that the university restore salaries first, before spending money on other projects or objectives.
We have a long way to go, and I'll keep you posted as things develop.
Labels: 2009-11 Budget
posted by Jeff Alworth at
10:03 AM
2 Comments:
You should calculate savings from the new PERS Tier one/two employer rate which drops 6.54% to 2.06% (not including the Pension Obligation Debt Service of 5.95%). The Tier 1/2 ORP employer rate drops from 16.01% to 11.89%. The new rates go into effect on July 1.
You should also find out about savings from the PEBB move to self-insurance.
There are more savings that you should include in your analysis.
The PERS Tier 1/2 employer rate drops from 6.54% to 2.06% as of July 1 (not including 5.95% Pension Obligation Bond Debt Service). The ORP Tier 1/2 employer rate drops from 16.01% to 11.89%. There will be considerable savings in 2009-11 from the lower rate.
I imagine there will also be savings from PEBB moving to self-insurance instead of paying an insurance company for health care coverage.
These savings are discussed by administrators.
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