More than a decade of lagging state support for higher education has taken its toll on Oregon’s public universities, according to some observers. Rising tuition costs, fewer scholarship opportunities, backlogs of deferred maintenance projects and crowded classrooms proved unfortunate — but not altogether surprising — realities in a state ranked 46th in the nation in per-student funding.

Now, with Gov. Ted Kulongoski’s recommended budget for 2007-09, things appear to be looking up for the Oregon University System, as well as the state’s 17 community colleges.

The state is expected to have about $15.3 billion available during the 2007-09 biennium, an increase of more than 20 percent from the $12.5 billion budgeted in the current biennium.

The governor’s recommended budget for the next two years allots $4.9 billion to OUS, which governs the state’s seven public universities. General fund appropriations total $827.1 million, a 12 percent increase over the current biennium.

“After years of asking students to pay more and more while getting less and less, students are very excited to see this necessary first step in reinvesting in postsecondary education,” said Megan Driver, an Oregon State University sophomore majoring in Spanish and political science. Driver is the Oregon Student Association board chairwoman. She’s also the Associated Students of OSU’s director of state affairs.

Representatives from the Oregon Student Association, a nonprofit student advocacy group, also were pleased to see the governor cap tuition increases in his budget.

Annual tuition hikes are limited to the projected change in median family income (about 3.4 percent per year).

The plan also invests in two programs designed to increase access to higher education. The Shared Responsibility Model, a revised system for awarding need-based aid, and Access to Student Assistance Programs in Reach of Everyone (ASPIRE), a volunteer mentor program that provides high school students with the tools necessary to achieve a college education, both will help make postsecondary education more affordable and achievable for a greater cross section of students, according to OSA.

“The governor’s budget brings our state one step closer to offering all Oregonians the opportunity of a college degree,” said Driver. “This investment stands to bring only good returns to our state, as having an educated citizenry is more important than ever to Oregon’s economic and cultural future.”

OSU specifically will see about $127.3 million in bonds and other revenue sources for 12 capital construction projects.

This includes $4 million for a planned Biofuels Lab and Learning Center, $5 million for a proposed wind farm project, $20 million for Gill Coliseum renovations, $15.5 million for deferred maintenance and seismic upgrades to Nash Hall, and $62.5 million to build a Pauling Research and Education Building to house the expanding Linus Pauling Institute, currently located in Weniger Hall.

In addition, OSU will be eligible for about $27 million from a system-wide pool of capital repair dollars.

“This one is huge compared to previous budgets,” said Bob Simonton, OUS director of capital construction.

Not only does the 2007-09 recommended budget provide about $100 million more for capital projects than the budget for the current biennium, but also it shows a significant increase in state contributions, Simonton said.

Under Gov. Kulongoski’s plan, the state contributes about 51 percent of capital costs, whereas it pitched in closer to 25 percent in the 2005-07 biennium. State contributions to the capital construction budget have been averaging 20 percent since 1995.

“It’s a big increase, and it’s very much needed,” said Simonton, noting that relying on private donors to fund mundane projects such as sewage repairs and wiring systems is a precarious position to be in.

The governor’s recommended budget also increases funding for the Natural Resources Institute at OSU by $250,000 to provide research and policy support to state agencies and other organizations on a variety of natural resources issues, including environmental protection and watershed conservation.

Gov. Kulongoski also calls for a $10 million influx for the Oregon Nanoscience and Microtechnologies Institute, a collaboration between OSU, Portland State University, the University of Oregon and the Pacific Northwest National Laboratory, to focus on commercializing technologies and support start-up companies.

In his recommended budget, the governor pegs $5.23 million for Ocean Energy Wave Initiatives, key components of which include creating the Wave Energy Trust to convene all stakeholders and manage the overall initiative ($600,000); establishing a production incentive to offset the above-market cost of wave energy ($2.23 million); supporting private sector site development ($1 million); and investing in research and development at OSU ($500,000 per year for the biennium).

“This $500,000 per year for OSU’s research and development would be tremendous to advance our wave energy initiatives,” said professor Annette von Jouanne, leader of OSU’s Wave Energy Program.

Gov. Kulongoski’s financial blueprint will be considered by the Legislature once the session starts in January, and versions will be debated by Senate and House committees before the final budget is approved.

Mary Ann Albright covers higher education. She can be reached at maryann.albright@lee.net or 758-9518.

By the numbers

Here’s a look at how higher education fared in the governor’s recommended budget for the 2007-09 biennium:

$4.9 billion: Total funds earmarked for the Oregon University System.

$827.1 million: OUS general fund appropriations (a 12.5 percent increase over the current biennium).

$20.1 million: Increase in lottery funding, bringing the total to $31.5 million; $18 million of this will go toward debt service for capital projects. The remainder will help subsidize campuses’ athletics and scholarship programs, and eliminates the Sports Action lottery funding.

$594.5 million: Capital construction funds for 45 projects at OUS campuses across the state.

$8 million: Money for faculty raises (compared to $1 million in the current biennium), intended to bring OUS faculty salaries from about 86 percent of the average compensation rates at peer institutions to 88 percent.

$6.9 million: Investment in additional faculty to reduce student-instructor ratios, offer more advising and improve universities’ recruitment and retention programs.

$14.6 million: Enrollment growth funding.

$483 million: Funding for Oregon’s 17 community colleges (up 12.6 percent from the current biennium).