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SOU could lose up to $1 million University will use up reserves rather than cut staff, president says By DAMIAN MANN ASHLAND � Southern Oregon University plans on dipping into its reserves next year to combat a budget shortfall that could rise to $1 million. Interim President Sara Hopkins-Powell predicted the school could lose as little as $300,000 or as much as $1 million, depending on decisions made by the Legislature and other factors. "The question is, do we just squeak by or do we have a bigger budget cut?" she said. "We think we have budgeted to get us through the shortfall." Whatever the anticipated shortfall, Hopkins-Powell vows that there won�t be any layoffs. Instead, the university will use some of its $2.5 million in reserves as an interim solution, she said. The university has suffered a decline in enrollment, dropping from a high of 5,751 in fall 1999 to 5,502 in fall 2000. Hopkins-Powell anticipates a rebound in enrollment next year that would boost revenues and prevent further dipping into the reserves � or the potentially more serious consequence of cutbacks. If the state approves an increase in tuition, that would also counter some of the budget problems. The governor has proposed 4-percent increases in tuition in each of the following two years. "There are so many variables," she said. "But at this point, we are being very prudent." The school receives $35 million from the state, of which $19 million comes from tax revenues and the remainder from tuition. The rest of the university�s $60 million budget comes from the bookstore, grants, contracts, gifts and other income. Hopkins-Powell, who will remain interim president until Elisabeth Zinser takes over in August, believes the university can absorb the cutbacks without making layoffs. During the �90s, she said, the university reduced staff through attrition, making it already a much leaner campus. Like other schools in Jackson County, SOU is concerned about decisions that will be made by the Legislature, which is under pressure to reduce education spending if income levels in May are less than anticipated. "There is just too much at play in Salem right now," she said. Ron Bolstad, vice president of administration and finance, said that although enrollment is down 4 to 5 percent, the university is predicting a modest increase in students next fall. "We are hoping to bounce back, but it is too early to tell," he said. "Over the long term, we should grow a modest amount." Bolstad does not expect enrollment to increase next year to 1999 levels, however. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.