Based on current projections, UO is facing a $25-30 million yearly deficit in the Education and General Fund from 2026 to at least 2030, according to UO Chief Financial Officer Jamie Moffitt. This fund covers most aspects of university life, including instruction, research and public service costs.

“Starting next year, we are forecasting to roll into a structural deficit… a situation where our expenses are forecast to be larger than our revenue, and that is not a one-time issue; that is an occurring issue until we address it,” Moffitt said. “If we do nothing, that is not really an option because we would be running about a $30 million dollar deficit.”

For context, a $30 million yearly deficit would be around 5% of UO’s E&G funding, each year, using 2023 data.

Due to this deficit, there will be a 4% average reduction to the budget of administrative units and a 2.5% reduction to the budgets of schools and colleges each year, according to an email signed by UO President John Karl Scholz and UO Provost Chris Long last Friday.

Federal grant fluctuations, which affect a $33 million portion of UO’s budget, was not factored into the calculations either, according to Brian Fox, associate vice president for budget, financial analysis and data analytics.

According to UO’s website, as of May 28, $6.4 million dollars in UO grants have already been cancelled.

“We have not made assumptions of material reductions in the indirect rate or in the level of grant activity at the institution. So that is an additional risk to the institution, but one that we don’t know the level of,” Fox said. “I think that’s important to note that there are areas in the budget out there where there continue to be unknowns that may impact us.”

UO is admitting its largest class in history next fall, but the university is still falling short of its financial goals, partly because the majority of its admitted students are from Oregon and pay lower tuition than their out-of-state counterparts. Moffitt stressed how UO’s tuition dependence makes this a financial issue. 

“This year it’s about 77% of our revenue from tuition. I think most institutions get a much larger share of funds from their state, and since we have such a small share… of our E&G fund coming from our state, we are very, very tuition dependent,” Moffit said.

To balance this resident/non-resident ratio, UO is focusing on attracting more out-of-state students, but is having trouble due to competition with the UC systems and out-of-state scholarships, in addition to federal financial uncertainty, according to Fox and Moffitt.

“We have been discounting (providing scholarships) more aggressively to secure the non-resident population. That is a competitive environment… and that is clearly becoming an even more competitive place at the federal level because of the FAFSA system and changes in the marketplace,” Fox said. 

UO will also be considering online academic revenue streams and focusing on transfer students.

“We have finalized a dual admissions agreement with Lane Community College that will allow us both to connect with LCC students early and allow them to identify as future Ducks more quickly,” Long said. 

During the June 3 public comment session, campus labor unions emphasized their desire for clear communication while decisions on budget cuts are made.

“It is essential that the university is transparent and we have a place at the table at this time,” Victoria Robison, a member of UO Student Workers, said.

Graduate Teaching Fellows Federation President Presence O’Neal, said it was important for UO and GTFF to exercise “shared governance.” 

“I think everyone works hard in communications at the university. There are always gaps and we are working on filling these gaps but we don’t think we have a problem with people sharing information,” Board Chair Steve Holwerda said.

Amid the discussion of cuts, some faculty also expressed concern for their jobs.

“I speak for the faculty in saying that we are worried about the future of this university and the practice of laying off labor as the administrative response to real and anticipated shortfalls,” Maram Epstein, a UO professor representing United Academics, said.

UA’s May 28 newsletter attempted to reassure members despite the “doom and gloom.”

“The CBA (contract) contains several provisions and guardrails that constrain the administration’s ability to terminate faculty without cause,” the newsletter reads. “We are prepared to enforce those provisions using all the tools and resources available to us.”

According to the contract, which lasts through June 2027, career faculty can be laid off at any time due to budgetary constraints if they are given appropriate warning — which ranges from 30 to 365 days based on seniority. 

The soonest the UO Board of Trustees could approve a round of budget cuts would be at the next board of trustees meeting on September 15-16. 

Leading up to fall term, Vice Chair of the Board Marcia Aaron said UO planned to research how costs should be reduced most effectively.

“I think if we look at the communications that have gone out by the university, they say we are going to take the summer to figure out cost reductions,” Aaron said. “My sense is there is a desire to be thoughtful about how we approach any cuts, and my experience has been that as we go to cut costs, there is a time lapse of when those cuts are revealed.”

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