Beyond the Numbers

Oregon State University has overcome a number of fiscal challenges this year, strengthening its financial situation and maintaining the high level of academic excellence that is a hallmark of this institution.

The University enters 1998-99 with a projected enrollment increase of more than 1,000 students over the biennium - the largest increase of the past decade. This has enormous fiscal implications for OSU because a new funding model approved by the Oregon University System ties state appropriations directly to university performance, especially in the area of enrollment. With projected enrollment increases over the next several years, OSU's future looks bright.

The University has been able to absorb major budget challenges -- some of which were brought about by calculated investment - during a critical three-year period and emerge in sound fiscal condition.

During these past three challenging years, Oregon State University has been able to maintain a positive fund balance. In fact, the University shows a projected balance of $19.679 million for the 1997-98 fiscal year. This balance indicates that OSU's overall revenues, including reserves, exceed overall expenditures. (Many of those dollars are "restricted," which means that they are earmarked for certain areas within the University and cannot be used for other purposes.) The decline in OSU's fund balance from 1995 to 1998 has moderated substantially this past year, and in 1998-99 the University projects an increase in its fund balance for the first time in four years.
New leadership in Information Services and Intercollegiate Athletics has dealt aggressively with deficits in those departments while striving to maintain -- and even improve -- the quality of programs and services. Intercollegiate Athletics is focusing its deficit-reduction effort on generating new revenue, primarily through innovative marketing and licensing efforts, along with an intensive fundraising campaign to increase scholarship support for student athletes. (The major cause of the department's deficit can be attributed to an 80% increase in tuition since 1990, during a time when scholarship support remained relatively constant.) Information Services is ahead of schedule on its five-year pay-back plan, primarily by instituting strong cost controls in purchasing and inventory management, and by prioritizing and streamlining services.


Oregon State University Financial Report

Statement of Current Fund Revenues, Expenditures, and Other Changes

  1993-94 1994-95 1995-96 1996-97 Est. 1997-98
Revenues
Tuition and Fees 50,213,116  55,527,198  63,093,314  65,189,419  66,167,260 
Federal Appropriations 7,465,614  9,479,070  6,243,215  6,086,757  8,394,275 
State Appropriations 101,184,793  102,166,634  88,118,805  93,185,064  106,148,186*
County Appropriations 3,199,195  3,520,525  3,830,013  4,035,744  4,253,674 
Gifts, Grants, and Contracts 91,402,590  90,304,903  125,113,343  100,502,442  109,000,283 
Sales and Services of Educational Depts. 11,483,021  12,223,323  12,514,742  13,671,532  13,466,459 
Auxiliary Enterprises 32,695,560  33,393,327  34,743,106  35,087,105  36,139,718 
Other Revenue 22,138,413  27,162,369  26,630,855  54,449,233* 39,896,612*
Indirect Cost Recoveries 14,359,171  14,669,285  15,257,059  15,866,577  16,659,980 
Total Revenues 334,141,473  348,446,634  375,544,452  388,073,873  400,126,447 
Expenditures
Instruction 77,562,909  80,552,409  84,874,594  88,366,225  88,376,625 
Public Service 39,965,990  42,900,817  40,415,834  42,002,283  42,017,098 
Research 95,000,446  98,532,553  101,935,780  104,119,931  104,160,874 
Academic Support 23,232,546  22,610,052  23,457,460  23,514,551  23,510,877 
Student Services 8,547,310  8,597,398  9,395,655  10,202,599  9,957,617 
Operation and Maintenance of Plant 15,944,547  14,646,995  16,113,596  15,536,840  16,238,244 
Capital Improvements 648,518  1,101,081     753,871  955,300 
Institutional Support 21,223,580  22,185,753  28,230,970  23,681,202  25,927,854 
Student Aid 13,207,438  13,184,199  43,203,650* 47,029,529* 48,440,428*
Service Departments 886,029  1,278,503  3,027,563  2,610,831  4,170,026 
Auxiliary Program Expenditures 28,328,123  30,568,343  35,950,983  39,874,577  37,528,630 
Other Expenditures 1,034,903  1,572,832  863,590  855,613  885,390 
Total Expenditures 325,582,339  337,730,935  387,469,675  398,548,052  402,168,963 
Transfers
Debt Service (1,894,787)  (2,638,362)  (4,013,409)  (2,831,515)  (2,922,123) 
Renewals and Replacements (1,634,904)  (1,362,092)          
Other 522,083  (3,879,156)          
Nonmandatory Transfers     (3,521,829)  (4,859,194)  (4,316,227) 
Total Transfers (3,007,608)  (7,879,610)  (7,535,238)  (7,690,709)  (7,238,350) 
Other Additions (Deductions)
Change in Reserves 52,384  (252,277)          
Excess of Restricted Receipts
over Revenues Applied
1,193,229  3,591,431  4,858,912  7,671,697  7,234,410 
Refunds to Grantors (126,247)  (75,543)  (155,420)  (109,689)  (115,701) 
Total Other Additions 1,119,366  3,263,611  4,703,492  7,562,008  7,118,709 
Net Change in Fund Balance
Unrestricted 5,645,108  2,945,283  (15,642,868)  (12,214,921)  (3,197,269) 
Restricted 1,025,784  3,154,417  885,899  1,612,041  1,035,112 
Total Net Change 6,670,892  6,099,700  (14,756,969)  (10,602,880)  (2,162,157) 
Fund Balance at Beginning of Year
Unrestricted 22,529,509  28,174,617  31,119,900  15,477,032  3,262,111 
Restricted 11,901,390  12,927,174  16,081,591  16,967,490  18,579,531 
Total Beginning Balance 34,430,899  41,101,791  47,201,491  32,444,522  21,841,642 
Fund Balance at End of Year
Unrestricted 28,174,617  31,119,900  15,477,032  3,262,111  64,842 
Restricted 12,927,174  16,081,591  16,967,490  18,579,531  19,614,643 
Total Ending Balance 41,101,791  47,201,491  32,444,522  21,841,642  19,679,485 
* Change in accounting procedures

Source: OUS Annual Financial Report, audited by Deloitte & Touche LLP, Independent Public Accountants through June 30, 1997. 1997-98 figures are internal OSU estimates.

About Some of the Numbers

Revenue from tuition and fees rose significantly in 1995-96, reflecting the last major increase in those areas. During the last two years, tuition for in-state students has been frozen, which has improved access for Oregon students.

State appropriations appear to have increased significantly -- from approximately $88 million in 1995-96 to $106 million in 1997-98. However, much of that increase reflects the fact that approximately $10.2 million in funding for some University programs -- including veterinary medicine, the Agricultural Experiment Station, and parts of the OSU Extension Service -- was changed from the lottery to the general fund. That also accounts, in part, for the changing figures under "Other Revenue."

Grants and contracts continue to be a source of strength for the University, generating an estimated $104 million in 1997-98. Oregon State University ranks first among comparable public institutions (1997 Graham and Diamond, The Rise of American Research Universities) in per capita research and development dollars generated. OSU's total of more than $60,000 per faculty member easily surpassed institutions like Texas A&M, Rutgers, the University of Massachusetts, Washington State, Michigan State, and the University of Oregon.

Cover Page
Letter from the President
Top Tier University
Compelling Learning Experience
Statewide Campus New Facilities Toward the 21st Century Financial Summary


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