‘Exigency,’ Olum warns
Staff salaries, four programs face axe
The latest special session of
the Oregon Legislature was
short, but it wasn't sweet for
higher education in Oregon
According to University Pres.
Paul Olum, Gov. Vic Atiyeh’s
decision to include higher
education in this latest round of
state budget reductions proba
bly means financial exigency —
a form of bankruptcy — for the
University.
The Legislature, reacting to a
predicted $100 million revenue
shortfall, last week approved
Atiyeh’s recommendation to cut
$10 million from state agency
budgets as one element of a
five-part package of reductions.
Higher education's share of the
cut is $2.4 million.
Atiyeh's announcement that
the state colleges and universi
ties would be included in the
cuts caught many higher
education officials off guard.
Earlier, the governor had said
the state system of higher
education would be spared
further cuts because it had suf
fered enough
But something changed his
mind. In his final recommenda
tion to the Legislature. Atiyeh
included the $2 4 million reduc
tion in higher education. The
Legislature approved all of
Atiyeh's recommendations dur
ing the 14-hour session last
Monday.
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‘‘Of course I’m disappoint
ed," Olum said at a press con
ference the day after the ses
sion. Atiyeh appeared commit
ted to exempting higher educa
tion from the cut, Olum said, but
“then he went and did it.”
If the University is forced to
cut a proportionate share of the
$2.4 million, four "outreach”
programs would probably be
eliminated, saving about
$650,000, Olum said.
Analysis
The programs Olum named
are the Bureau of Governmental
Research and Services, the
Labor Education and Research
Center, the Oregon Institute of
Marine Biology at Charleston
and the University radio station,
KWAX.
In order to make the layoffs
legal for the tenured faculty in
volved in these programs, ex
igency would have to be de
clared, Olum said.
If the University is forced to
follow through with the cuts,
they would represent the most
serious program surgery since
Olum took over as head of the
University
‘‘I am vigorously and uncom
promisingly opposed to such
closures,” Olum said in a letter
to state Sen. Ed Fadeley of
Eugene, chairman of the bud
get-writing Ways and Means
Committee. “It would constitute
a terrible loss to the State of
Oregon and it should be pointed
out that once closed it would be
almost impossible to restore
them later.”
Perhaps even more serious
was the Legislature's decision
to impose a 6 percent pay
reduction on all state em
ployees. Although teachers are
exempted, classified employees
are not.
The announcement of the pay
cut came barely a week after the
University worked out an
agreement with classified em
ployees for a voluntary 3
percent decrease. That
agreement is now '‘moot,'’
Olum said.
Because the initial pay cut
was in response to previously
mandated budget cuts, the
University will face an additional
$400,000 shortfall by withdraw
ing the agreement. Olum was
not specific on how the Univer
sity would handle that deficit.
Olum was the only state sys
tem representative present dur
ing the special session. Alth
ough he did not testify during
the session, Olum said he spent
hours alerting legislators of the
effects further cuts would have
on the University.
Before the session opened,
outgoing state system Chancel
lor Roy Lieuallen had answered
questions from legislators on
the effects of further cuts in the
higher education budget.
“The Chancellor's remarks
seemed to imply that higher
education could handle the cuts
by cutting special expendi
Emerald photo
turess” Olum said. He went on to
say further cuts in services and
supplies or library expenditures
were unrealistic.
Unfortunately, the worst may
not be over. Legislators already
were predicting another special
session for September to deal
with another possible revenue
shortfall.
By Harry Esteve
Seoud
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