OSU FACULTY SENATE Budget Update April 8, 2010

FY10 Budget Outlook – Recap of FS Presentation Nov, 2009 E&G Budget Budget balanced with $5.4 million in cuts Possible additional reductions estimated at $7 million if tax measures fail SWPS Budget Budget balanced with $9 million in cuts Possible additional reductions estimated at $5.4 million if tax measures fail Financial Variables Tax measure vote, Jan 2010 – possible further reductions State revenue forecast – possible further reductions Furloughs – salary and benefits savings Enrollment growth stability – increased tuition above budget Indirect cost recovery – potential for marginal revenue above budget Tuition rate – possible spring increase if needed

FY10 Budget – Change in Revenue & Expenses since Nov, 09 Net impact Additional Revenue Recurring$8.0 - $9.0 million Non-recurring$2.0 - $2.5 million Additional Expenses Expense increases due to tax measures & economic forecast$0 Additional Revenue Tuition – revenue above budgeted $4.5 - $5.0 million Indirect Cost Recovery – revenue above budgeted $1.0 - $1.5 million Enrollment growth settle-up from Chancellor’s Office$1.7 million Furlough – salary/benefit savings$2.0 - $2.5 million Projected FY10 Fund Balance E&G11.2% (from 7.6% at start of year) SWPS 7.7% (from 5.4% at start of year)

$ $ $315.0 Other Rev. State funds Net tuition & fees $298.9 S&S, other Salaries & OPE $310.8 Other Rev. State Funds Net tuition & fees $320.0 S&S, other Salaries & OPE $328.2 Other Rev. State funds Net tuition & fees S&S, other Salaries & OPE $333.9 Other Rev. State Funds Net tuition & fees Salaries & OPE S&S, other $693.1 $ (FY2011) (FY2012) (FY2013) (Biennium) Key Assumptions, FY11-FY13 Enrollment GrowthRevenue Reduction / Cost Increase Resident – 1%Reduction in State Funding FY % Non-resident – 5% + INTO PERS Increase – 6.5% Ecampus – 10% PEBB Increase – 10% New investments Academic faculty - $4 million Non-academic faculty - $2 million Tuition Increase Non-recurring in facilities, IT, etc. - $5-$10 million Resident – 8% Non-resident – 3.5% Salary increase – 3%/year Plateau continued OREGON STATE UNIVERSITY OSU Education & General Funds (excludes Cascades Campus) (millions of dollars – not to scale) Fed. Stimulus REVENUE EXPENSE

FUND BALANCE AS A % OF REVENUE 8.0% 3.0%