Dear Colleagues:
We have a difficult message to share with you today about the financial outlook for our institution.
Over the last several months, the university’s budget has been adversely affected by several factors, including sweeping changes to federal research funding, limited state support, and shortfalls in non-resident enrollment projections.
Since January, we have been navigating the negative impacts of multiple federal actions that have ceased or paused research funding at a scale that the university cannot replace. Other executive actions threaten our international student enrollment.
State appropriations continue to fall short of needed investments: the governor’s recommended budget provides only a 2.8 percent increase to higher education funding for next year, substantially below the expected growth in our costs. The state budget itself faces pressures from many directions, putting our efforts to secure additional state funding in jeopardy. This comes as we are grappling with increased costs, including compensation costs and state-mandated programs such as the Oregon Public Employees Retirement System.
Finally, as a tuition-driven institution, enrollment has a profound influence on our budget. While we are delighted to be welcoming a record number of Oregon students this coming fall, we are trending far short of our target for non-resident students, who pay higher tuition and thus have an outsized impact on our budget. This shortfall also reflects a more competitive landscape for college recruitment. Future cycles will also likely demand that we invest more to attract out-of-state students.
Any one of these factors would cause us significant financial challenges, but the cumulative effect of their simultaneous impact creates a level of financial difficulty the university has not experienced in many years. These external factors have also exacerbated preexisting budget gaps we are addressing in some individual schools and colleges.
While we are still determining the scope and scale of the challenge, we know it will require difficult decisions in the months ahead, decisions that must be guided by our commitment to fiscal responsibility, our concern for the well-being of our community, and our aspirations to make the university stronger and more resilient. We will work over the next several months to bring intentionality and a principled approach to a difficult task. That work will engage leaders across the university, allowing for local knowledge to inform our final decisions.
We understand this message may raise important questions about what our financial outlook will mean for the future of the university and for you personally. We will be sharing more information late next week and are planning a town hall before the end of the term to address as many questions and concerns as we can.
For nearly 150 years, the University of Oregon has faced adversity with resolve, met disruption with imagination, and responded to uncertainty with a steadfast commitment to our shared purpose. Together, we will meet this moment with the enduring spirit of humanity, resilience, and creativity that has long defined our university community.
Sincerely,
Karl Scholz
President
Christopher P. Long
Provost and Senior Vice President
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