Cuts likely to extension and ag and forest research

By KYLE ODEGARD

Gazette-Times reporter

The Oregon Legislature's Emergency Board is expected to cut $2.4 million from Oregon State University's budget when it meets today in Salem. The cuts would take effect in the next fiscal year, which begins Tuesday.

A subcommittee of the Emergency Board recommended Thursday to release only 80 percent of a $126 million state salary pool. OSU's portion of the pool is about $12 million, and many promised salary increases already have been awarded.

"I know the Legislature cares deeply about higher education. We're in a difficult financial time," OSU President Ed Ray said. "I'm sure we can get through this year. We're going to do what we can not to close classes."

The university could tap into its ending fund balance, which stood at $43.7 million at the end of March, to help cover the loss.

"But that's just a patch. It's cash. It's one-time money. The money that we've lost represented continuing funding for the university. Unless somebody replaces it next biennium, it's not going to be there," Ray said.

He and other OSU officials are hoping that the next biennium will bring better economic times and more money into the state's general fund. But barring an unexpected economic upswing, some cutbacks are likely in the coming fiscal year. For example, OSU officials are likely to put off buying necessary equipment and hiring advisers and support employees.

About $1.36 million of the 20 percent reduction would come from OSU's general education fund.

Most likely to face the impact of the shortfall are OSU's three statewide service programs: The OSU Agricultural Experiment Station would lose $576,000 in funding, the OSU Extension Service $430,000 and the OSU Forest Research Laboratory $49,000.

"I can't imagine they're not going to have to reduce some of the activities they have planned to do," Ray said.

In March, the state revenue forecast predicted there would be $153 million less than was estimated with the Legislature adjourned in June 2007.

The Legislature responded by withholding the state salary pool, putting that funding in limbo.

Additional funds could be released in September, but this seems unlikely, said Jock Mills, OSU director of government relations.

The 80 percent application of the salary pool was universally applied, and other state universities, the Oregon Department of Human Services and the Oregon Department of Corrections also faced major reductions, Mills said.

The Emergency Board is expected to come to the aid of honey bees. Its education subcommittee recommended a $215,000 expenditure to address the emerging problem of honey bee colony collapse. Funds would be used at OSU to hire two bee experts to conduct research and provide extension services on the insects' health.

Kyle Odegard covers Oregon State University. He can be contacted at kyle.odegard@lee.net or 758-9523.