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Perspectives
Time will judge new system’s success
The new financial
distribution system for
Oregon’s universities
shows potential, but it
could also be harmful
|lie fact that the state Board of Higher Education
voted to overhaul the financial structure for Ore
gon’s universities should not come as a surprise.
JL What should come as a surprise is that the vote
was unanimous.
Thursday's vote, which was endorsed by all seven of
the state's university presidents, changed the way Ore
gon's universities will be funded. Instead of each school
pooling its funds within the Oregon University System
and then waiting for the disproportionate redistribution,
schools will keep their own tuitions and fees. In addi
tion, state-supplied funding will be loosely allocated on
a per-student basis, and the new system includes finan
cial incentives for keeping students in school and in
creasing graduation rates, among other things.
On the surface. University of Oregon students should
be pleased with this vote, which is being heartily en
dorsed by Gov. John Kitzhaber. The University of Ore
gon is the state's largest institution and thus, the highest
grossing university. Oregon's faculty regularly win
prestigious awards, and that is a factor for gaining bonus
funding included in the new package.
Beginning in the 1999-2000 biennium, when students
attend Oregon they can be sure all money they pay the
University will stay at the University. Oregon universi
ties will ultimately be forced to compete for students.
They will make themselves more attractive to students
in the hopes of increasing enrollment or just keeping en
rollment steady. For students, this could mean better
programs, better professors and more of a commitment
from the University.
This sounds like a win-win situation for students. The
universities will be forced to offer better services, and
they will keep all the funds students contribute. Howev
er, there are several drawbacks.
In competition, there are always winners and losers. It
is hard to imagine the University of Oregon becoming a
loser, but officials concede it is a definite possibility that
smaller Oregon universities could be forced to close.
The University of Oregon has a definite head start on
other Oregon universities such as Western Oregon Uni
versity. Oregon has more financial resources, a larger
alumni base and a broader reputation. By decentralizing
the funding process, the smaller universities are being
forced to compete against economic superiors.
This could be devastating if the smaller universities
are forced to start cutting departments because they sim
ply cannot compete. Many students like to attend col
lege near home, and if schools begin cutting depart
ments, this may no longer be a possibility for many
Oregon high school graduates.
If students simply cannot find what they are looking
for near home, they may decide to leave the state for the
nation’s best programs. This situation would be counter
productive and possibly destructive within Oregon.
The board hopes the financial changes will promote
positive competition, resulting in strong Oregon univer
sities.
Board officials understood the challenges when they
unanimously voted for the changes, and even the presi
dents of the small institutions endorsed the change.
They are accepting the financial challenges. The state of
higher education in Oregon now stands to gain a lot, but
it is also at risk of losing a lot.
Thus editorial represents the opinion of the Emerald editoral
board. Responses maybe sent to ode@onegon.uoregon edu.
KILEY ARROYO/Emerald
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