News Releases
News from
Lane Community College, Eugene, Oregon
Public information officer: Joan Aschim, (541) 463-5591, aschimj@lanecc.edu
For release January 26, 2006
LCC preparing for deficit
EUGENE - Lane Community College President Mary Spilde has advised the college's Board of Education and employees to prepare for a shortfall in 2006/07. After deep budget reductions and tuition increases in 2001 in response to state revenue reductions, Lane has had three years of stability, avoiding further budget reductions. Preliminary projections for the future, however, reflect declines in enrollment as well as state funding that is still $28 million less than in 2001 for Oregon's community colleges. Spilde noted "that the college's top priority is to keep our focus on students' success, and preserve the quality of education and workforce training programs. But we must consider fundamental changes in the way we do our work, while living within our means."
Like many institutions, Lane has bridged the funding gap in recent years through incremental measures while doing everything possible to increase revenue and avoid knee-jerking into reductions that adversely impact students and limit their choices. Lane's board has continually reviewed budget strategy since the previous reductions.
Lane's budget has been stable for three years and some revenue growth has occurred. An enrollment decline appears to have stopped last fall, with preliminary figures showing a 2.4 percent increase, and changes to the state funding distribution formula will begin to benefit Lane over the next six years. Lane has also worked on the expense side, for example taking steps to curb health care increases. But the improvements haven't come fast enough.
Last November, the college issued a preliminary budget projection to begin the development process. At that time, deficits were estimated at about $1.6 million for '06/07, and more than $5 million for '07/08. As information has become available it is clear that the deficit will be much larger for '06/07. The college has not met a 4 percent target in enrollment growth, and other uncertainties remain, including PERS costs, insurance costs, and state funding.
Additional factors indicate an unsustainable situation: Tuition revenues increase at about 4 percent per year and state funding, which includes property and income taxes, was only 1.7 percent more this year than last year. Revenues are not keeping up with expenses.
The college will continue revenue efforts. Spilde has asked the board to reconsider a local option levy, which could generate about $1 million but would likely compete with K-12 districts who have or might seek a local option. The work of the Lane Community College Foundation is critical and offers individuals a way to support students and the college.
Incremental measures also will continue. Staff will work to simplify processes and apply technology to streamline work.Finally, the president says bolder, systemic changes in operations and instruction will be necessary. The president is seeking ideas from faculty, staff, students, the board, and the public. If we were designing the college today, what would it look like?
Budget criteria and priorities previously developed in a collegewide process and approved by the board will not change--but the timeline will move up. Reduction recommendations for '06/07 will be made this spring, rather than waiting until fall to make recommendations for the following year.
"We knew this day was coming unless some things changed," says Spilde. "Many of our efforts are paying off but they simply are not happening fast enough to delay reductions any longer. The impact on Lane and our community is very personal but this is part of an ongoing public disinvestment in higher education that is confronting colleges and universities all over the country."
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