Frequently Asked Questions
General FAQs
FAQs for Students
Non-Resident Tuition FAQs
General FAQs
Are all universities going through this process of program reductions and layoffs?
Every university in the state system is cutting their budgets in light of the financial crisis our state is in. Each university is, like with many things, dealing with them differently as each are impacted differently.
For EOU, and for some other agencies, our state allocation reduction is magnified because of the percentage it represents to our total revenues. For our education and general budget (not including auxiliaries, capital, etc.) 45 percent of our revenues come from state appropriations. For comparison, for all seven universities in the Oregon State System, this level of funding ranges from a low of 81 percent (University of Oregon) to 48 percent (OIT) with an average of 32 percent.
As we scan the national scene, those public universities that have over 35 percent reliance on state appropriate funding for the E&G are the ones most impacted and are most likely to make significant changes.
How is that we are growing and serving more students, but are cutting our budgets? Isn’t growing our enrollments bringing in more revenues?
Yes, we are growing and by considerable amounts—we are retaining more of our students, our freshman class is projected to get larger and we are seeing more and more transfers. However, our students’ tuition only pays for a part of their education and the services that are provided to them. The remaining amount is paid for by the state through the appropriation process. These funds, representing 45 percent of our revenue base, are what is being decreased by 20 to 25 percent. The growth in student tuition dollars (both in terms of the growth in numbers as well as the increase in tuition) is not at the level to absorb the cut in the state appropriation.
If that is the case, why not increase tuition more? Or, even set it at the level to offset the decrease in state funding?
To accomplish that goal, based on the projections from OUS, our tuition increase for the 2011-2012 academic year would need to be 29 percent and another 23 percent the following year. While, in fact, many public universities are increasing their tuition levels at the double-digit level, I don’t believe it is a prudent strategy for EOU in meeting our mission.
Why can’t you just cut spending on items EOU purchases—our Service and Supply Budget—and not layoff people or reduce programs?
We are looking at our service and supply budget very carefully and will make cuts there. However, of our S&S budget, a significant portion is fixed and cannot be altered to a great extent. For example, our utility bill and annual assessments are nearly $2 million. This represents 35 percent of our total S&S budget. Yes, we can conserve and have put in place many measures to do that. As part of our reduction strategies, we are looking at many options to reduce expenditures; however, it cannot be the only place to cut.
Another aspect is that 85 percent of our total E&G budget are personnel costs. We are in the service industry and this is not to be unexpected. While, compared to other similar universities, in line as a percentage of expenditures, we are on the higher end. And, based on our mission of service, this is to be expected.
I hear we are remodeling Pierce Library and Zabel Hall as well as some work in Hoke. Why don’t we just use the money from these projects?
Most of the funding for classroom and instructional buildings, like Pierce and Zabel, comes from state funding provided specifically for each project. State law does not allow shifting the funding for capital projects to other uses. In recent years, most of the capital projects funded by the state have been financed with state bonds, the proceeds of which are reserved under federal law for capital projects only. Some funding for buildings has come from private gifts dedicated for a particular project. In each case, funding for capital projects cannot be shifted to salaries or pay for other operating costs.
Hoke Union is operated as an auxiliary enterprise. Student housing, a significant portion of athletics, the Fitness Center and Outdoor Center and the Bookstore are other examples of auxiliary enterprises. As such, construction and operating costs for these enterprises, while under the auspices of EOU, are funded through non-state appropriations (student fees or direct revenues for example).
It seems to me that every few years we are going through this. Will it ever stop?
Like many public universities, EOU is caught in an untenable situation. We strive to keep tuition low so that students can afford to go to college, yet the state is providing less and less funding for this service. We must find ways to become more reliant on our generation of revenues. Yes, we can control our costs to a degree. However, we are in the service business and therefore a majority of our costs are “people.” Because of this, our cost structures are different than, say, if we were in manufacturing. Furthermore, our revenue streams primarily come from two sources: the state in the form of appropriations and our students in the form of tuition. Right now and in the foreseeable future, state funding will continue to diminish. Therefore, as we build our models and develop our plans for the future, in order to become more stable and sustainable, we must develop new revenue streams AND control costs—it must be done at both levels.
In order to increase our revenues, and as mandated by the state, we must develop a non-resident tuition model that fits in with our strategies of being cost competitive. This can be done (Western Oregon is a prime example of this) and we are working diligently in this area. Non-resident tuition will not be our “silver bullet” and save EOU from future budget issues; however, if implemented correctly and aggressively, it will enable us to control our revenue streams much more effectively.
The Academic Program Review and the Administrative Unit Review will also provide us a road map and direction of our programs and offerings that will enable us to plan more effectively over multiple years. My goal is to get us to the point where we are planning over a three to five-year time horizon instead of annually. This too will provide us a much more stable view of our efforts and afford us the opportunity to be proactive instead of reactive.
So, will it ever stop? We are state funded and will always be state funded. To the degree in which we can establish new revenue streams and establish our planning horizon over a longer time period, we will have less of these fluctuations.
We also must remember, the current financial crisis is not because of anything that is happening here at EOU. It is the impact of the state, national and global economic climate. What will set up a part, and establish our new trajectory, is how we deal with it now and in the present.
I have a great idea that I know will work for EOU. How do I get that idea to you?
On the Budget Information homepage is a button titled, “Great Ideas.” Click on it and you can send me your ideas from this page. If you wish, you can include your name and contact information so I can follow up. However, if you wish to submit your comments anonymously, just leave that area blank.
FAQs for Students
Why is EOU having to reduce its budget—after all, we have more students than ever?
The resources from the state of Oregon dedicated to EOU are declining at a precipitous rate, and if we don’t change, our financial condition will deteriorate to a point of unimaginable consequences. It is true that next year we will have more students than ever; however, we will receive less money from the state than any time in the last decade. Because nearly 50% of our revenue comes from state funds, EOU is more directly impacted by these budget reductions and the economic condition of the state than some other universities. However, all public universities—in Oregon and throughout the nation—are being impacted and are reducing expenditures.
Why do you need to reduce programs and services—why not just cut operating expenses or raise revenues?
Like most universities, 85% of EOU’s costs are personnel related. This is not uncommon, as the majority of our work involves people serving others. While we are in fact reducing operating expenses, given the magnitude of the cuts in our state funding model, it is impossible to decrease costs in this area alone. Furthermore, we must also provide the tools necessary to perform the duties needed to serve students. As a consequence, we must trim our personnel expenses, which means we must also reduce some of the services and programs we offer. These decisions are not easy and will be done in a manner that minimizes the adverse impact on our students, maintains academic quality and meets the standards of the state system and our accrediting bodies.
We are looking at ways to increase revenues as well, but it is not prudent to balance the budget on just income. For example, if we wanted to solve the budget imbalance strictly by increasing tuition, we would need to raise it by over 30% each year. We will be implementing some new tuition models, namely non-resident rates for certain areas, which are important to EOU to achieve financial stability without just looking at cutting costs.
The goal of the plan is to have a realistic and balanced approach to our financial situation, as well as serve students in the best manner possible.
I am majoring/minoring in an academic program that is discussed as either being eliminated or reduced. Will I be able to complete the program at EOU?
All students who are in a major or minor in an area that is being eliminated or reduced will be “taught out,” which means we will ensure that you have the courses you need, or make other arrangements for you to finish your area of study. We will work with you directly to ensure you are able to satisfy your academic requirements articulated under the appropriate University Catalog.
I have heard EOU is eliminating its security department. How will that impact campus safety?
EOU is not eliminating our security department. We are reducing the number of personnel in this area. The safety and security of our campus is critical and steps have been made to minimize the impact of a smaller security staff. We are creating a shift schedule that will provide adequate security and we will also continue to work closely with the La Grande Police Department. Finally, other units within EOU will complete some of the duties that are non-safety related.
Non-Resident Tuition FAQs
I’m a current EOU student and not from Oregon. Will I pay non-resident tuition?
No. All students who are U.S. residents and continuously enrolled at EOU prior to summer term 2012 will continue to pay in-state tuition for up to six years. Please note: Students may not take more than three consecutive terms off from their studies to maintain current enrollment status.
When will EOU start charging non-resident tuition?
Non-resident tuition will begin summer term 2012. Students enrolling up to this time will be grandfathered into the existing tuition structure and exempt from paying the non-resident rate.
Are students from other states eligible to receive resident tuition?
Yes. EOU defines resident students as those from Idaho, Washington and Oregon.
If I apply to EOU now for spring term 2013, will I pay non-resident tuition?
Yes. Applicants who enroll for summer term 2012 and beyond will pay non-resident tuition if they are from states other than Idaho, Washington and Oregon.
How much is non-resident tuition going to cost?
Non-resident tuition will be calculated at two times the current tuition rate. For example: estimated 2011-12 resident tuition for 15 credits is $5,604. $5,604 X 2 = $11,208. Fees are not included in this approximation. For more detailed cost estimates visit the Financial Aid website.
Does EOU charge international tuition?
Yes. EOU is implementing out-of-country tuition for students who are not U.S. residents.
When does the out-of-country rate go into effect?
As of May 1, 2011, international students enrolling for fall 2011 and beyond will pay out-of-country tuition.
I’m a current international EOU student. Will my tuition change?
No. International students applying prior to May 1, 2011, will continue to pay resident tuition for up to six years. Please note: Students may not take more than three consecutive terms off from their studies to maintain current enrollment status.
How much is out-of-country tuition going to cost?
Out-of-country tuition will be calculated at three times the residential tuition rate. For example: estimated 2011-12 resident tuition for 15 credits is $5,604. $5,604 X 3 = $16,812. Fees are not included in this approximation. For more detailed cost estimates visit the International Admissionsweb page.
Do students from U.S. territories pay out-of-country tuition?
No. Students who do not need a Visa to enroll at EOU will be considered non-resident and will pay non-resident tuition.
I’m an online EOU student. Will my tuition be affected by these changes?
No. The cost for online and onsite courses is determined using a separate tuition structure.
