UNIVERSITIES: ADVANCING OREGON AND …...$99.6 $108.2 $161.4 $98.4 $95.0 $101.1 $104.5 $592.4 $671.3$500 $601.5 $486.5 $40.6 $35.0 $520.5 $589.0 $728.0s $830.8 $778.2 $691.2 $785.0

OREGON’S 7 PUBLIC

UNIVERSITIES:

ADVANCING OREGON

AND OREGONIANS

Days 11-13 BEN CANNON, Execu t i ve D i rec tor, HECC; BRIAN FOX, Admin i s t ra to r, Un ive r s i ty Budge t and F inance , HECC; Campus representa t ives

PRESENTED TO: JOINT COMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON EDUCATION

OSU

2

Introduction: Oregon’s

7 public universities

Day 11, JOINT COMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON EDUCATION

PUBLIC UNIVERSITY SUPPORT FUND, TUITION-OFFSET CONTINUATION, DEBT SERVICE

BEN CANNON, Execut ive Di rector, HECC; BRIAN FOX, Di rector, Univers i ty Budget and F inance, HECC; Univers i ty Representa t ives

UO

3

PUBLIC UNIVERSITY FUNDING REQUEST

LAB=Legislatively Adopted Budget, GRB=Governor’s Recommended Budget, GF=General Funds, OF=Other Funds, FF=Federal Funds

1Reflects technical adjustment to GRB.

Activity Budget Items 2013-15 LAB 2015-17

GRB

Public University

Support

Public University Support Fund

POP 101: Tuition buy down continuation

POP 102: Additional PUSF

$520.5M GF --

--

Total: $520.5M

$513.3M GF + $41.1M GF

+ $34.6M GF1

Total: $589.0M

Debt Service Public University Debt Service $114.7M GF/LF

$161.4M GF/LF

4

Advance Oregon toward 40-40-20

• Aligning investment and policies with the state’s 40-40-20 goals

Affordability

• Reinvest in public universities, continue past tuition offset, and expand physical capacity

Student Success Outcomes

• Focus evaluation, KPM, and funding formula on student success, completions and equity

HECC BUDGET PRIORITIES

5

MEASURING OREGON AGAINST 40-40-20

35%

20%

18%

24%

Source: HECC analysis of the American Community Survey, ECONW

6

COMPLETION PIPELINE FOR YOUNG OREGONIANS

Source: EcoNorthwest analysis of NCES, ODE, CCWD and OUS data

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 2 3 4 5 6 7

Deg

ree A

ttain

men

t R

ate

Years after expected HS graduation date

Oregon High School Cohort Degree Attainment Years After Anticipated High School Graduation

2005-06 BA

2006-07 BA

2007-08 BA

2008-09 BA

2009-10 BA

2010-11 BA

2011-12 BA

2012-13 BA

Goal BA*

Year represents

high school cohort

year

7

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Actual Projections

Source: OUS Office of Institutional Research, Projections March 2015

American Indian/Alaska Native Asian/Pacific Islander

Black, non-Hispanic Hispanic White, non-Hispanic

OREGON PUBLIC HIGH SCHOOL GRADUATES BY RACE/ETHNICITY, 2000-01 TO 2012-13 (ACTUAL), 2013-14 TO 2033-34 (PROJECTED)

2014-15

8

44,595 48,105 51,313 52,522 53,498 53,730 58,223 58,626 60,382 63,220 64,664 65,376 70,121 69,698 68,390

10,183 10,667

11,051 10,790 10,455 10,959 12,470 13,676

15,729 17,619

20,647 22,496 24,777 26,427 27,379

14,730 15,111

15,747 16,246 16,113 16,199 10,309 9,947

10,485 10,741

11,649 12,444

6,495 6,949 6,706

0

20,000

40,000

60,000

80,000

100,000

120,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Stu

den

t H

ead

co

un

t E

nro

llm

en

t,

4th

week

Fall

Term

Public University Enrollment, Fall Term Headcount by Fee Status: Resident, Nonresident and Part-Time Students

Resident Non-Resident Part-Time

TOTAL & RESIDENT ENROLLMENT (FTE)

Source: Oregon University System Office of Institutional Research

9

SERVING A MORE DIVERSE STUDENT BODY: ENROLLMENT BY RACE/ETHNICITY


Federal reporting

changes in 2010

resulted in some

students moving

from the unknown

to the minority

category.

9.2 8.4 7.4 6.4 5.9 5.2 5.1 4.9 4.9 4.7 4.7

63.1 64.9 66.9 68.2 68.7 69.2 70.3 71.0 71.6 72.7 73.3

22.5 21.3 20.3 19.2 17.5 15.0 14.9 14.4 14.0 13.6 13.6

5.2 5.3 5.4 6.2 7.9 10.6 9.8 9.7 9.6 9.0 8.4

0%

20%

40%

60%

80%

100%

20142013201220112010200920082007200620052004

Enrollment by Racial/Ethnic Group, Fall 2004 through Fall 2014 (Minorities Grouped in a Single Category)

Nonresident Alien White Minority Unknown

10

ENROLLMENT OF LOW INCOME STUDENTS

17,763 16,848 15,996 16,297 17,237 22,311

26,784 29,055 28,882 29,162 27,818

47,471 48,962 49,625 51,106 53,785

53,132 53,597

55,071 56,612 57,869 58,089

0

20,000

40,000

60,000

80,000

100,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Undergraduate Student Enrollment by Pell Status

Pell Recipients Non-Pell Recipients


11

RURAL FRESHMAN PARTICIPATION

2013-14 Public University Freshman Participation Rate as a

Percentage of Oregon Public High School Graduates, 2012-13

Source: Oregon University System Office of Institutional Research; Excludes home school completers and private high school graduates.

12

UNIVERSITY TRANSFER STUDENTS

4,159

4,588 4,854

5,099 5,041 4,769 4,907 4,823

5,710

6,541

7,065 7,119 7,005

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Tra

nsf

ers

Academic Years

Transfers from Oregon Community Colleges to the Public Universities


13

COMPLETIONS AND DEGREE OUTPUT

12,840

21,359

9,620

15,019

3,220

6,340

0

4,000

8,000

12,000

16,000

20,000

24,000

1998-99 2001-02 2004-05 2007-08 2010-11 2013-14

Degre

es

Aw

ard

ed

Degrees Awarded, 1998-99 through 2013-14 (Undergraduate and Graduate)

Total

Resident

Nonresident

Source: OUS Institutional Research. Degree totals do not include Associate’s degrees or certificates.

14

39.7%

60.2%

44.4%

48.2%

55.7%

46.8%

57.7%

41.9%

55.1%

60.3%

55.3%

60.9%

39.3%

53.2%

61.0%

50.4%

60.3%

48.4%

52.9%

61.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

American Indian/AlaskanNative

Asian/Pacific Islander Black/African American Hispanic/Latino White

Public University Six-Year Graduation Rates by Race/Ethnicity

2001 Graduates1 2006 Graduates2 2011 Graduates3 2013 Graduates4

GRADUATION RATES BY RACE/ETHNICITY

60.3% 2013 Average 6-Year Graduation Rate

11995-96 Fall First-Time Freshman Cohort completing by June 2001 22000-01 Fall First-Time Freshman Cohort completing by June 2006 32005-06 Fall First-Time Freshman Cohort completing by June 2011 42007-08 Fall First-Time Freshman Cohort completing by June 2013 Source: OUS Institutional Research

15

RESIDENT DEGREES AWARDED AT OREGON PUBLIC UNIVERSITIES, BY PELL GRANT STATUS (UNDERGRADUATE AND GRADUATE )

Source: OUS Institutional Research. Notes: Degree totals do not include certificates or Associate’s degrees. Collection of Pell data began in 2002-03. A student receiving a Pell in any year before graduating is included in the Pell category. NOTE: In 2008 Pell Grant eligibility was expanded significantly.

4,290

7,074

8,795

7,944

Total 13,085

Total 15,018

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Res

iden

t D

egre

es A

war

ded

Resident Degrees by Pell Status

No Pell

Pell

16

Projected high school cohorts are relatively flat, with increasing minority populations and decreasing transfer enrollment corresponding to CC enrollment declines

Growing university enrollment of minority students, particularly Hispanic/Latino students and low income students, with persistent completion gaps

Overall stabilizing or shrinking resident enrollment, as large cohorts from the recession complete college

Degrees granted to resident Pell Grant recipients now represent 47% of total resident degrees granted, and 57% percentage of undergraduate resident degrees granted

Completion rates for white students have increased, while progress for minority students is mixed

Additional enrollment will likely be from students least likely to enroll and complete today – additional support and focused investment on student success and completion will be required

UNIVERSITY ENROLLMENT/COMPLETION

17

STATE INVESTMENT

Sources: OUS Budget Summary’s 2006-07 through 2015-15 and 2015-17 GRB - Legislative funding change during the 2013-15 biennium separated State Programs from the Public University Support Fund. - 2013-15 State Programs includes ETIC appropriation after transition to OEIB

$30.3 $39.4 $68.7 $101.1 $114.8 $161.4 $99.6 $108.2

$98.4 $95.0

$101.1

$104.5

$592.4

$671.3 $601.5 $486.5

$40.6 $35.0

$520.5

$589.0

$728.0

$830.8

$778.2

$691.2

$785.0

$889.9

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 GRB

Pu

bli

c U

niv

ers

ity A

pp

rop

riati

on

s (

mil

lio

ns)

Public University Biennial Appropriations

Debt Service (GF & LF) SWPS Sports Lottery

Education & General (GF & ARRA) Public University Support Fund State Programs Public University Support Fund State Programs

18

$6,273

$5,480

$4,653

$5,143

$5,900

$5,417

$4,416

$5,289

$5,938

$1,500

$2,500

$3,500

$4,500

$5,500

$6,500

$7,500

University Funding per Resident FTE

Data Source: HECC Budget and Finance

STATE APPROPRIATIONS PER STUDENT N O N - I N F LAT I O N A D J U S T E D S TAT E A P P R O P R I AT I O N S , I N C L U D I N G E D U C AT I O N A N D G E N E R A L F U N D S A N D D E BT S E R V I C E

19

$3,203 $3,391 $3,529 $3,856

$4,770 $5,325

$5,913

$6,854

$7,917 $8,202

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1996 1998 2000 2002 2004 2006 2008 2010 2012 2013

Ave

rag

e R

esi

den

t U

G T

uit

ion

Academic Year

Average Resident Undergraduate Tuition at Oregon’s Public Universities

TUITION AVERAGE OVER TIME

Source: OUS Institutional Research

20

UNIVERSITY: SHIFT OF COSTS FROM STATE TO STUDENT

Source: OUS Institutional Research

9% 8% 7% 7% 8% 8% 8% 8% 8%

49% 46% 45% 51%

58% 58% 59% 66%

73%

43% 46% 47% 41%

34% 35% 33% 26%

19%

1997 1999 2001 2003 2005 2007 2009 2011 2013

Public University Percentage of Total Revenue by Source

StateAppropriations

Tuition and Fees

Other

21

EDUCATIONAL APPROPRIATIONS PER FTE STATE DIFFERENCES FROM U.S. AVERAGE, FISCAL 2013

Oregon

22

AL

AZ

AR

CA

CO

CT

DE

FL

GA

HI

ID

IL

IN

IA

KS

KY

LA

ME MD

MA

MI

MN

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH OK OR

PA

RI

SC

SD TN

TX

UT VT

WA

WV

WI

WY US

17

18

19

20

21

22

23

24

25

26

27

$25,000 $35,000 $45,000 $55,000 $65,000 $75,000 $85,000 $95,000 $105,000 $115,000

Un

der

grad

uat

e C

reden

tial

s A

war

ded

per

100 F

TE

Stu

den

ts (

2011-1

2)

State, Local, Tuition and Fee Revenues per Credential Produced (2010-11)

High Productivity, Low Cost

Low Productivity, Low Cost

High Productivity, High Cost

Low Productivity, High Cost

Sources: NCHEMS Analysis of NCES, IPEDS Enrollment, Completions, and Finance Surveys

UNDERGRADUATE CREDENTIAL PRODUCTIVITY AND COST PER UNDERGRADUATE CREDENTIAL PRODUCED – PUBLIC RESEARCH INSTITUTIONS

Alaska = 167511.2/17.38

23

AL

AK

AZ

AR

CA

CO

CT

DE

FL

GA

HI

ID

IL

IN

IA

KS

KY

LA

ME

MD

MA MI

MN

MS

MO

MT

NE NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

US

10

12

14

16

18

20

22

24

26

28

$20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000

Un

der

grad

uat

e C

reden

tial

s A

war

ded

per

100 F

TE

Stu

den

ts (

2011-1

2)

State, Local, Tuition and Fee Revenues per Credential Produced (2010-11)

High Productivity, Low Cost

Low Productivity, Low Cost

High Productivity, High Cost

Low Productivity, High Cost

UNDERGRADUATE CREDENTIAL PRODUCTIVITY AND COST PER UNDERGRADUATE CREDENTIAL PRODUCED – PUBLIC BACHELOR’S AND MASTER’S INSTITUTIONS

Sources: NCHEMS Analysis of NCES, IPEDS Enrollment, Completions, and Finance Surveys

24

State operating funding has declined since 2007-09 on a non-inflation adjusted basis.

- Debt service has increased significantly as the state traded operating investments for capital investments which cost less at the time and directly stimulated the economy.

Enrollment growth and tuition increases made up for state disinvestment.

Universities receive significantly less state support on a per student basis than their peers in other states.

Oregon’s public universities are remarkably efficient at successfully serving students with relatively little total resources.

UNIVERSITY FUNDING AND PRODUCTIVITY

25

To reach 40-40-20, Oregon needs to

increase the number of Oregon students

successfully completing the

certificate, degree, and credential programs in

which they have invested.

Shifts the basis for state funding

distribution from enrollment – seats in a

class– to access and successful program

completion, joining 35 states that have moved to include outcomes as part of their funding

system.

Provides resources and incentives to foster

campus-level innovations to increase

student success — especially among the

least represented student populations such as low-income,

rural and underserved minorities.

STUDENT SUCCESS FUNDING FOR OREGON'S PUBLIC UNIVERSITIES

26

Model under consideration would:

Provide base support recognizing the distinctiveness of each university in its institutional mission and scope, as well as research, public service and partnerships.

Reward degree and certificate completion—including supporting students’ completion and seamless transfers from community colleges.

Provide incentives for institutions to support highest need and underrepresented students—such as low-income, underrepresented minority, rural and veteran students.

Serve the state’s economic development goals through increased funding for degrees in high-demand/high-reward fields, such as those leading to careers in healthcare, STEM and bilingual education.

UNIVERSITY FUNDING STUDENT SUCCESS AND COMPLETION

How have

universities been

involved? In June 2014, the HECC

formed a technical

workgroup to make

recommendations and

develop an outcomes-

based funding model

to staff. The workgroup

membership includes

senior financial and

academic leaders from

each of the seven public

universities, and

leadership from the Inter-

institutional Faculty

Senate and the Oregon

Student Association.

27

University Measures

First-year retention rate

Six-year graduation rate

Number of bachelor’s degrees awarded each academic year

Number of bachelor’s degrees awarded to transfer students from Oregon

community colleges each academic year

Graduation rate for newly admitted undergraduate students who are not first-

time full-time freshman students within 6 years

RESULTS FOR OREGON STUDENTS PROPOSED KPMS FOR PUBLIC UNIVERSITIES

28

Measures

Median earnings of college completers 4 quarters and 5 years after

completion (CC’s)

Median earnings of students who left but earned at least 12 credits (CC’s)

Median earnings of graduating students (BA/BS only) 4 quarters and 5

years after graduation (university)

RESULTS FOR OREGON STUDENTS: PROPOSED KPMS RELATED TO GRADUATE EARNINGS

29

Public University

Representative Presentations

PUBLIC UNIVERSITY SUPPORT FUND

Day 11 , JO INT COMMITTEE ON WAYS AND MEANS , SUBCOMMITTEE ON EDUCATION

30

Public University

Presentations, continued:

Diverse Missions


PUBLIC SERVICE PROGRAMS, RESEARCH, ECONOMIC DEVELOPMENT, PARTNERSHIPS, ETIC

UO

BRIAN FOX, Di rector, Univers i ty Budget and F inance, HECC;

Univers i ty Representat ives

31

ETIC, STATE PROGRAMS FUNDING REQUEST


1HECC 2013-15 LAB included ETIC funding for a portion of the biennium (remainder at OEIB). 2HECC 2015-17 base budget includes no ETIC funding (all at OEIB).

Activity Budget Items 2013-15 LAB 2015-17 GRB

State Programs

including ETIC

Public programs including ETIC

• ETIC “Sustaining Funds” transfer

POP 90

$25.5M $10.6M

$24.5M

Total: $35.0M

32

Programs operated largely by the three research universities which focus on economic development, industry and public service needs of Oregon

Legislatively appropriated line items, support and extend key capacities of research universities for the betterment of the state

Programs range from mediation and conflict resolution training to demographic forecasting and maritime research

STATE PROGRAMS

33

STATE PROGRAMS

Public University State Programs

University Program Funding

All ETIC Sustaining Funds $24.5M

PSU & UO Dispute Resolution Center $2.5M

PSU Oregon Solutions $2.3M

OSU, PSU & UO Signature Research Centers $1.0M

Oregon Metals Initiative $749K

UO Labor Education Research Center $679K

PSU Population Research Center $535K

OSU Institute of Natural Resources $399K

UO & L&C Clinical Legal Education $349K

OSU Oregon Climate Change Research Institute $313K

OSU Oceangoing Research Vessel $620K

OSU Fermentation Science $1.2M

Total $35.0M

34

ETIC began in 1997 and focused on developing capacity in engineering and technology education and innovation

ETIC funding provided bedrock support to university high-tech focused programs, creating research and faculty capacity

ETIC has split its focus on “sustaining” and a more nimble “renewable” funding model

Renewable funding will f low through OEIB/OED

HECC will engage with stakeholders to focus sustaining dollars through a formula driven allocation model

ETIC RECONFIGURATION, POP 90

35

Public University


PUBLIC SERVICE RESEARCH STATE PROGRAMS ETIC


STATEWIDE PUBLIC

SERVICE PROGRAMS &

CAPITAL CONSTRUCTION


OSU

SOU

BRIAN FOX, Administrator, Univers i ty Budget and F inance, HECC;

Univers i ty Representat ives

37

Statewide Public

Services

Day 13, JOINT COMMITTEE ON WAYS AND MEANS,

SUBCOMMITTEE ON EDUCATION

BRIAN FOX, Administrator, Universi ty

Budget and Finance, HECC;

Universi ty Representat ives

OSU

38

STATEWIDE PUBLIC SERVICES FUNDING REQUEST

Budget Items 2013-15 LAB 2015-17

GRB

Extension Service $39.9M GF $41.2M GF

Forest Research Laboratory $6.1M GF

$6.3M GF

Agriculture Experiment Station $55.2M GF

$57M GF

Total $101.2M GF $104.5M GF


39

STATEWIDE PUBLIC SERVICES

Agricultural Experiment Station: AES is the principal agricultural and related natural resource research agency of the State of Oregon. AES mission is to conduct research to solve problems and generate innovations in the agricultural, biological, social and environmental sciences relating to Oregon agriculture, associated industries and natural resources.

Extension Service: OSU Extension Service is the community-based education outreach arm of Oregon’s land, sea, sun and space grant-university. It is cooperatively funded from federal, state, county and other sources. OSU-ES engages the people of Oregon with research-based knowledge and education that strengthen communities and economies, sustain natural resources, and promote healthy families and individuals.

Forest Research Laboratory: The FRL is Oregon’s forest resources research agency that helps solve problems, create opportunities, and develop new understanding and innovation about forest ecosystems, forest management and forest-derived renewable materials. FRL is also the research component of Oregon State University’s College of Forestry.

40

Public University


STATEWIDE PUBLIC SERVICES


AGRICULTURAL EXPER IMENT STATION

EXTENSION SERV ICE

FOREST RESEARCH LABORATORY

41

Capital

Construction

Day 14

BRIAN FOX, Administrator, Universi ty

Budget and Finance, HECC;

Universi ty Representat ives

UO

42

CAPITAL BOND CAPACITY REQUEST

Activity Budget Items 2013-15 LAB 2015-17

GRB

University Capital

Bond Capacity

New bond capacity (repaid from state

GF/LF)

New bond capacity (campus-repaid)

$246.4M

$383.8M

Total: $630.2M

$275.5M

$53.0M

Total: $328.5M

University Debt Service Debt Service (GF/LF): $89.2M GF

$25.6M LF

Total: $114.7M

$129.4M GF

$32.0M LF

Total: $161.4M


43

Public University Facilities – Fall 2014

Buildings GSF Notes

Total State 6,698 54,175,063

Total University 1,320 28,018,285 51% of State capital Assets

Total E&G 900 15,449,509 55% of university assets

Total Aux & Other 420 12,568,776 45% of university assets

Individual Institutions E&G GSF and Buildings

Institutions Buildings GSF % of Total E&G Space

EOU 21 517,110 3.3%

OIT 32 759,267 4.9%

OSU 554 6,287,399 40.7%

PSU 32 1,939,879 12.6%

SOU 22 882,575 5.7%

UO 203 4,344,935 28.1%

WOU 36 718,344 4.6%

UNIVERSITY CAPITAL PORTFOLIO

Data Source: DAS Capital Finance and Planning, HECC University Finance and Budget analysis of institutional data.

44

Institutions E&G GSF* Space Over 30

Years Old*

Deferred

Maintenance

Backlog*

Deferred

Maintenance

Backlog per

Relevant

GSF*

Seismic Backlog

(Estimated by OUS

based on 2007 report)

EOU 585,481 76% $18M $30 $17M

OIT 468,211 70% $33m $71 $3M

OSU 4,454,036 77% $155M $36 $166M

PSU 2,414,452 84% $169M $70 $23M

SOU 865,645 80% $18M $21 $28M

UO 3,483,674 72% $105M $30 $73M

WOU 695,132 77% $30M $42 $40M

DEFERRED MAINTENANCE AND BUILDING AGE, BY INSTITUTION (E&G SPACE ONLY)

Sources: OUS 2012 Sightlines Report, OUS 2013 Factbook and 2007 Statewide Seismic Needs Assessment by the Oregon Department of Geology and Mineral Industries

45

DEFERRED MAINTENANCE BY TYPE

Building Exterior $53.3M

10%

Electrical $168.1M

32%

Fire Protection/Detection

$18.1M 4%

Interiors and Built-Up Equipment $119.1M

23%

Mechanical $122.4M

23%

Plumbing $38.0M

7%

Roofing $6.8M

1%

Small Building-All Renewal $1.9M

0%

Data Sources: OUS 2013 Factbook and OUS 2012 Sightlines Report

46

CAPITAL CONSTRUCTION FUNDING

Data Source: OUS Budget Summaries 2005-2006, through 2014-15, Governor's Recommended Budget (2015-17)

$114.9

$233.5 $221.9

$112.5

$246.4 $275.5

$295.4

$327.8

$462.4

$231.5

$383.8

$170.4

$410.3

$561.3

$684.3

$344.0

$630.2

$445.9

$0

$100

$200

$300

$400

$500

$600

$700

$800

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 GRB

Bie

nn

ial C

apit

al B

ud

get

(mill

ion

s)

General Fund and State Backed Debt

Total State Capital Budget Campus /Non-State Funded Capital Budget

47

STATE FUNDED UNIVERSITY DEBT SERVICE (GF+LF)

Data Source: OUS Budget Summaries 2005-2006, through 2014-15, Governor's Recommended Budget (2015-17), and University Shared Services Enterprise

$33.1

$52.7

$82.1

$101.2

$114.7

$161.4

$174.6

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2005-07 2007-09 2009-11 2011-13 2013-15 2015-17 GRB 2017-19 Forecast

Sta

te F

un

ded

Deb

t S

erv

ice (

in M

illi

on

s)

Biennia

Total State Funded Debt Service (GF+LF)

48

2015-17 Capital Reauthorizations

Institution Project State Funding

(type)

* EOU Eastern Learning Commons Planning/Design and

Infrastructure Upgrades

$2.0M (XI-Q)

* OIT Cornett Hall Renovation Design/Planning $2.0M (XI-Q)

OSU OSU Modular Data Center $7.0M (XI-F)

PSU University Center Land Purchase $7.9M (XI-F)

* EOU and OIT Capital Planning bonding was repurposed for IT and other projects was included in

SB 5543 (2015) 2013-15 rebalance bill which has passed both chambers and was signed by the

Governor on March 30, 2015. These projects no longer require reauthorization.

CAPITAL REAUTHORIZATIONS (UNIVERSITIES)

Data Source: HECC, SB 5543

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GRB finalized list……………Dec.

Assist in GRB Considerations……………Oct.

HECC Scoring and ARB development……………Aug.-Sept.

University President’s develop Tier I, II and III capital list……………July

HECC Capital Principles and Scoring Rubric development…………June-July

University capital submission……………April

HECC PROCESS

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All state backed debt will support the Commission’s Strategic Plan through investments in:

Classroom, Laboratory, Research or Student Services space

Institutions must plan for ongoing operational and maintenance needs of current and future capital portfolio

State backed debt will serve either to

Expand capacity to meet needs of students

Extend the useful life of current capital assets

Develop or extend key competitive advantages

Projects which generate operational cost savings will be priorit ized

The HECC, in conjunction with institutions will evaluate key capacity constraints across the portfolio of institutions to priorit ize investment

Public-private and multi -party collaborations will be encouraged

Leveraging of non-state resources, including private and university funds will be encouraged

Deferred maintenance and capital debt priorit ization will focus on aligning economic incentives of institutions and state capital investment

HECC UNIVERSITY CAPITAL PRINCIPLES

Source: HECC Principles to Guide the Prioritization of State General Obligation and State Backed Debt Financed Projects

http://education.oregon.gov/Documents/HECC/Budget Sub/July 3, 2014/2.0__HECCCapitalPrioritizationPolicyStatement_FINAL.pdf

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Project must meet Campus Master Plan, OEIB and HECC Strategic Plans…………………………………………………… threshold

• Ease capacity constraints within portfolio…………………. 10 pts

• Support student completion………………………………….... 10 pts

• Support research & economic development……………….. 5 pts

• Collaboration…………………………………………………….....… 5 pts

HECC priorities

Deferred maintenance and cost savings……................... 10 pts

Life, safety and code compliance…………………………….… 10 pts

Campus priority…………………………………………..…………… 20 pts

Enhance current efforts………………………………………….... 5 pts

Leveraging campus and external support………………….…15 pts

Strategic priority………………………………………………….…. 10 pts

HECC CAPITAL RUBRIC

Source: HECC 2015-17 University Capital Project Prioritization Scoring Rubric

http://education.oregon.gov/Documents/HECC/Budget Sub/July 3, 2014/2.0__HECCCapitalPrioritizationRubric_FINAL.pdf



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Priority Univ. Project State Funding

(type)

University

Funding (Type)

Total Project

Scope

1 All Capital Repair and Renewal $72.0 M (XI-Q) $0 $72.0 M

2 PSU Neuberger Hall $60.0 M (XI-G/Q) $10M $70.0 M

3 OSU Forest Science Complex $30.0 M (XI-G) $30M $60.0 M

4 UO Klamath Hall for 21st Century Chemistry $12.3 M (XI-G/Q) $6.25M $18.5 M

5 OSU Marine Studies Campus Phase I $25.0 M (XI-G) $25M $50.0 M

6 UO College and Careers Building $17.0 M (XI-Q) $17M $34.0 M

7* OIT Ctr for Excellence in Engineering &

Technology

$3.5 M (XI-Q) $0 $3.5 M

8* OIT Bolvin Hall Modernization $7.4 M (XI-Q) $0 $7.4 M

9 UO Chapman Hall Renovation $8.0 M (XI-G/Q) $2.5M) $10.5 M

10 WOU Natural Science Building (NS) Renovation $6.0 M (XI-Q) $0 $6.0 M

11 SOU Britt Hall Renovation $4.8 M (XI-Q) $0 $4.8 M

12 EOU Hunt Hall Demolition and Site Restoration $3.0 M (XI-Q) $0 $3.0 M

13 UO Learning and Innovation Hub - School of

A&AA/Research Innovation Ctr

$26.6 M (XI-G) $26.6 $53.3 M

NA PSU Broadway Housing Purchase $0 $53.0M (XI-F) $53.0 M

Technical Adjustment

*7 OIT Ctr for Excellence in Eng. & Tech. Phase I $10.9 M (XI-G/Q) $1.7M $12.6 M

2015-17 GRB: UNIVERSITY CAPITAL PROJECTS

Source: 2015-17 Governor’s Recommended Budget *OIT’s two capital projects will be combined through a technical adjustment to the GRB into Phase I of the Center for Excellence in Engineering and Technology

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Public University


UNIVERSITY CAPITAL PROJECTS


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Public comment

Day 14

OREGON HEALTH &

SCIENCE

UNIVERSITY

Day 15 BEN CANNON, Executive Director, HECC;

JOE ROBERTSON, President, OHSU

PRESENTED TO:

JOINT COMMITTEE ON WAYS AND MEANS, SUBCOMMITTEE ON EDUCATION

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OHSU REQUEST

Activity Budget Items 2013-15 LAB 2015-17 GRB

OHSU OHSU support funding $72.6M GF $77.3M GF1

Debt service OHSU Bond-Related Costs* $0.0M GF $17.7M GF

Source: 2015-17 Governor’s Recommended Budget *Excludes Master Tobacco Settlement funded debt service

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Public comment

Day 15 (par t i a l day )