Portland State Magazine Winter 2011

.. S12,000 Cost of instruction for the average student at Portland State University $10,000 $8,000 $6,000 $4,000 $2.000 L so 1989-90 1994-95 AFFORDABILITY will continue to be key at PSU, Wiewel says, because the University aims to serve a broad range of Oregonians. Tuition rates are based on the level of state subsidy, he says. When state funding for higher education falls, mition rises. "You've got to pay for higher educa– tion through taxes or you wind up pay– ing for it with tuition," Wiewel says. "I personally prefer to have a model where the public sector supports education fully, and tuition charges are very low. But that is not the world we live in . "In the end, we need to be able to ensure chat we deliver not just access but also quality, because access to low quality education is unacceptable." Pernsteiner says the State Board of Higher Education doesn't want to repeat the mistakes of the early 1990s, when tuition rose by nearly 41 percent in one year and enrollment fell by nearly 6,000 students from 1988 to 1994. "We basically shut the door on a whole generation of Oregonians," he says. "They are now in our adult popula– tion, and they are less educated than their parents and less educated than is necessary in a global economy." In a separate proposal, the University of Oregon plans to ask the Legislature to issue $800 million in bonds, matched by private donations, to create a $1.6 billion endowment to support education at the school. 1999-00 2004-05 2009-10 The State Board of Higher Educa– tion voted in December to oppose UO's financing proposal, saying it shortchanges Oregon's six ocher public universities. I F THE REST RU CTURING proposal is approved, Wiewel says, smdencs and faculty may not notice any difference initially. Over time, the University will become more nimble and entrepreneur– ial, saving money and generating more income for educational programs. For example, the proposal would remove several layers of state review and approval needed to buy a building, streamlining the process and giving PSU a stronger position in price negotiations. Universities also might be able to buy health care benefits at a lower cost than the state. (Employee pension plans would remain with the state.) Restrucmring the university system would not solve the bigger funding problem for higher education in Oregon, Wiewel says, but it is a "quantum leap" forward. "While this will reduce some of the coses, it's not going to suddenly make us rich by any screech," he says. ''Ac the very least, lee's get rid of unnecessary layers of oversight and bureaucracy." ■ Suzanne Pardington is a staffwriter in the PSU Office ofUniversity Communication. - State paid - Otherpaid - Student paid tuition and fees (all years adjusted to 2010 costs) Oregon's public universities want: > To keep students' tuition and the interest it earns at the universities. > Tuition money to no longer be given to other state agencies. > Students to have more say concerning tuition rates through new campus review committees. > State funding awarded in a lump sum with accountability (see below)-the same way public schools and community colleges are funded. > Universities reporting to the Legislature on new performance goals, such as enrollment, affordability, degrees awarded, and research funding. > Savings achieved from lower overhead and more efficient use of resources.