dailyemerald
Vol 83, No 66
Eugene, Oregon, 97403
Tuesday, December 8, 1981
Faculty decides
to save salaries
By DEBBIE HOWLETT
Of the Emerald
The State Board of Higher Education is
not looking at across-the-board cuts, but
instead is focusing on each institution to
cut wherever board members decide is
best, several Association of Oregon
Faculty members said Monday
"The AOF will support revenue raising
programs — not cuts in salary or
programs," said James Tattersall, eco
nomics department head
"The AOF should make a strong case
for no more cuts at all," agreed Larry
Pierce, political science department
head
The University branch of the Associa
tion of Oregon Faculty met in the EMU
Monday afternoon to discuss Chancellor
Roy Lieuallen's four proposed 5-percent
cuts that identify ways to reduce the
higher education budget by 20 percent
The discussion centered on the impact
of possible unpaid furloughs and salary
freezes next year for state system per
sonnel, as well as program reductions
and tuition increases included in the four
package" cuts proposed last week by
Lieuallen
The AOF is "not fully in agreement"
with Lieuallen over how to overcome the
projected shortfall of $47 million, Tatter
sall said
"The salary level is at such a non
competitive level, a cut would be very
damaging," Tattersall said A poll of
salary levels at 76 major universities
indicates the University is ranked 52nd
and Oregon State University 65th, he
said
"There is a lack of appreciation for the
significance of (salary cuts)," Tattersall
said
Several of the 50 educators who at
tended the meeting were concerned that
salary cuts were too high a priority in
Lieuallen's packages
They said if faculty must absorb some
of the deficit through salary reductions,
then all other state employees should be
asked to do the same
The faculty also questioned whether
the pay cuts should come in the form of
forgoing the scheduled 1982-83 in
crease or a several-day unpaid furlough
which would be accomplished by reduc
ing the Full-Time Equivalency 3 percent
to 97 percent
University Pres Paul Olum told the
group that with regard to administrative
problems, the furlough plan would be
technically easier, while changing the
FTE might require a declaration of fi
nancial exigency
The faculty decided the AOF should
first take the position of not cutting the
higher education budget at all Instead,
revenues should be found through
"revenue enhancement methods,” they
said, and if cuts have to be made, the
Legislature should look state-wide
Beyond the walls
An Emerald photographer ventures into the cells within the Oregon State
Penitentiary and remarks on his visit with pictures and words. See Page 7.
University consumers pad Eugene’s purse
°elt°^etV
Part I
Graphic by Max DeRung:
By DONALD COULTER
Of the Emerald
What happens to a university town when its u
niversity approaches bankruptcy? This article is the first
of a four-part series exploring the University's relation
ship to the local economy.
Grim may be too mild a word to describe the
general economic outlook for the University and the
surrounding community
Despite predictions for record enrollment this term,
registration at the University dropped by more than 4
percent from last year In addition, the Oregon State
System of Higher Education is facing a 20-percent
budget cut next year, which might include the closure of
several University departments and schools
By now, these cold facts are common knowledge to
anyone associated with the University, and campus
area businesses also have felt the effects
According to figures compiled by the University,
students spend an estimated $42 million on off-campus
housing, food, clothing and entertainment. That money
is the life blood of many University-area merchants
Even businesses outside the campus area depend
heavily on University-associated dollars.
Those merchants may suffer as professors are
layed off and students are forced to leave the University
because of increased tuition.
Among the merchants already feeling the sting is
Dale Turpin, manager of McKay s Supermarket on 1960
Franklin Blvd He attributes about 30 percent of the
store’s business to the University and says that cus
tomer volumes are directly related to student enroll
ment.
Turpin says the registration decline this fall is
"certainly’’ noticeable, as fewer students roam the
aisles of his store. And while customer volumes already
are down, Turpin worries about the future
Further cuts in the University’s budget "will have a
major effect," Turpin says "We just aren't going to be
able to offset the loss of students.”
Kevin McBirney, owner of the Kona Cafe near the
University Book Store, says his business actually is
slightly better than last year at this time
It takes a larger registration drop for the Kona to
feel the pinch, because it is a small restaurant, he says
Still, McBirney admits the University s future is crucial
to his business
"We get some trade from the hospital (Sacred
Heart) and the shops in the area, but most of our
business comes from professors and students, ” he
says
“If the college folds, I fold "
Off-campus housing also may feel the effects of
major budget cuts
Hugh Pritchard, general manager of Jean Tate
Realty, says school closures would compound prob
lems" that campus-area realtors already face
The impact of school closures would ripple down
to the economy,” he says Tt would come on the heels
of everything else.”
In response to the recession and increasing hous
ing costs, students have been "doubling up" over the
past year, Pritchard says For example, in living situa
tions where two students rented a two-bedroom apart
ment, the same apartment now is being rented by three
students — creating more vacancies in the University
area
Despite the added vacancies department and
school closures would create, Pritchard doesn’t think
rents will drop
"Housing prices have been very flat for the last few
years I doubt they will go up or down very much in the
future."
Ruby Brenne, of the Eugene Chamber of
Commerce, agrees that school closures would hurt
"The University is a powerful force," she says “It’s
the largest single employer in Lane County I'm just very
relieved that there wasn’t a 10-percent cut this year