The financial foundation and outlook of the University of Oregon was a main topic during the two-day meeting of the board of trustees June 2-3 in Eugene.
Chief Financial Officer Jamie Moffitt and her team reported extensively on this year’s budget as well as the outlook for the coming years. The UO is projected to finish with a balanced budget this year, but as it enters the coming budget cycles, Moffitt warned during FY26 the university will move into a structural deficit.
Moffitt explained tuition and fees, which make up 77 percent of the UO’s revenue in the Educational and General fund, are projected to grow at 2.5 percent for the next fiscal year. Compensation and benefit costs, which account for 79 percent of expenses, are forecast to grow at 7.1 percent. She said this imbalance won’t go away unless addressed and will compound in coming years.
President Karl Scholz and Provost Christopher P. Long referenced two messages they sent to the campus community in the last couple of weeks about the budget headwinds and explained some of the other reasons behind the deficit, including how the cumulative effect of federal and state actions, admissions results, hiring decisions across the institution and labor contracts has resulted in the sharp growth of expenses compared to revenue.
Scholz, during his report to the trustees on Day Two of the meeting, said it was a sobering situation that will require the university to make difficult budget decisions.
"There is no simple or quick fix,” Scholz said. “We anticipate taking the summer months to confer with leaders in academic and administrative areas to develop approaches that meet our targets of 4 percent average cuts across administrative units and 2.5 percent average cuts across academic units. [These cuts] are in addition to the changes that are required in academic and administrative units to meet their existing budgets.
“We will implement plans that best support our mission, our long-term goals, and our legal and contractual obligations and we will do this being mindful of the impact various options might have on the institution and our community.”
Read more about the UO’s financial future at strengtheninguo.uoregon.edu.
Government and Community Relations Executive Director Trent Lutz also gave an update on the current legislative session at the Oregon State Capitol. Lutz reported that the proposed funding for the Public University Support Fund was set at the current service level of $1.068 billion. Despite this being a 7 percent increase for the biennium, Lutz explained this still falls short of university needs.
The Oregon Opportunity Grant’s proposed funding is also at the current service level of $329 million, and $53 million in state bonds for a new building on the Portland Campus for the Ballmer Institute of Children’s Behavioral Health is still being considered.
Trustees also heard a report from Chief Resilience Officer and Vice President for Safety and Risk Services Director André Le Duc on risk management.
One executive session was held to discuss collective bargaining.
During the reports section of the meeting, the board listened to public comment and reports from the Officers of Administration Council, and the UO Student Workers, Service Employees International Union, Graduate Teaching Fellows Federation, and United Academics all jointly presented. Provost Long, Associated Students of the University of Oregon President Mariam Hassan and University Senate President Alison Schmitke all gave reports.
The agenda, materials and recordings of the meeting are available on the board website.
—Ben Schorzman, University Communications