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Budget gives SOU breathing room New funding formula will allow university to hire more faculty By VICKI GUARINO Southern Oregon University hopes to hire additional faculty members this year, thanks to projections for modest enrollment growth and a new state funding allocation that rewards schools for attracting more students. The Oregon State Board of Higher Education on Monday set SOU's operating budget at $55.7 million, based in large part on a new funding formula that lets the state's universities keep the tuition paid by their students. "We're still in the process of analyzing the details," SOU President Stephen Reno said Monday, "but we're pleased with the budget allocation from the state system." SOU's share is part of a $1.4 billion allocation to the state's seven universities for the 1999-2000 fiscal year apportioned by the state board. The money is a combination of a state subsidy approved by the Legislature and tuition to be paid by students. Prior to this year, tuition funds were pooled and distributed to universities by a formula. This year that portion of funding will depend on enrollment. Reno said SOU is anticipating close to 5,000 students after the fall term starts Sept. 27. That would be a 2.5 percent gain over last year. Last year enrollment showed no gain from the year before. The uncertainty in the funding picture is the uncertainty in the number of students who will actually enroll this fall. Enrollment will remain open after the term begins, so SOU officials won't have a clear view of school revenues until late October, Reno said. The anticipated enrollment gain mirrors gains throughout the state system, Reno said. He attributed the growth to the Legislature's funding support for higher education, and school marketing efforts. He said state support is helping to reverse a damaging public perception that the Oregon higher education system is in decline because of inadequate funding. Tying revenue to student numbers is making university administrators more sensitive to costs and market strategies. The challenge, said Reno, will be for schools to avoiding letting course scheduling become a popularity race in which only the programs with the most students survive. Smaller programs such as music, philosophy and history could suffer as a result. "We have to keep a full range of programs available," Reno said. Although Reno is anticipating more revenue for SOU this year, some of the gain will go to settling wages with classified employees. Yet to be settled are faculty wages. Nonetheless, Reno says SOU should be able to hire additional faculty this year. In past years, teaching positions have gone unfilled because of funding cuts. The key to restoring positions and expanding programs in coming years will be to increase enrollment, Reno said. "This is an entrepreneurial budget model ... it's a culture shift," he said. Funding approved for other universities was: $30.3 million for Eastern Oregon University, La Grande; $32.9 million for Oregon Institute of Technology, Klamath Falls; $352.7 million for Oregon State University, Corvallis; $230 million for Portland State University; $368.7 million for University of Oregon, Eugene; $67.8 million for Western Oregon University, Monmouth. State funding also includes $58 million for the Agricultural Experiment Station, $36.5 million for the Extension Service, $18.6 million for the Forest Research Laboratory and $14.6 million for the Chancellor's Office. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA