OSU Board sets tuition, fee hikes for 2021-22; plans to hire interim president

Also sets external review of hiring process for resigned president Alexander

CORVALLIS, Ore. (KTVZ) – The Oregon State University Board of Trustees on Friday approved tuition rates and fees for the 2021-22 school year, including a 2.5% increase for returning undergraduate students and a 4% increase for new undergraduate students enrolling at the university.

The tuition proposal was adopted by a 12-2 vote of the board and follows months of work by university budget committees comprised of OSU faculty, staff, students, and administrators, as well as numerous meetings held with students, faculty and staff.

The increases apply to Oregon resident and non-resident students at OSU’s Corvallis campus, OSU-Cascades in Bend and those enrolled through Ecampus, the university’s online education provider.

Tuition will increase 1.5% for resident graduate students and 4.5% for non-resident graduate students. Tuition rates for pharmacy students will increase 3% and veterinary medicine students by 2.5%.

At the same time, financial aid provided to students by OSU will increase to $59.5 million annually next year, up from $45 million in fiscal year 2020. It is anticipated that OSU students will receive $24.3 million in federal financial aid as a result of recent Congressional adoption of pandemic relief legislation.

Mandatory fees for health services and psychological services will increase 5% at the Corvallis campus and will not increase at OSU-Cascades. There will be no increase in mandatory building and matriculation fees at either campus.

Student incidental fees will increase 6.4% – an increase of $81.69 – at the Corvallis campus and 8.3% at OSU-Cascades, from $300 to $325. Incidental fees are recommended to OSU’s president and the Board of Trustees by student governments at the two campuses.

The board also heard a budget forecast for the 2021-22 year. As the university begins to recover from the pandemic, the forecast anticipates slowing enrollment growth, particularly among international students.

The forecast predicts inflationary cost increases of about 2.5%; and strategic spending to meet capital renewal needs, debt service on new revenue bonds, increased insurance costs, and investments in long-term strategies to increase efficiency and support enrollment growth. Inflation estimates are lower than in many years because of lower salary and benefit rate increases.

In other business, the board on Friday agreed to undertake an external review of the due diligence conducted in the 2019 search process that led to the board’s selection of F. King Alexander as president. Recommendations from the external review are expected by May 31 and will inform the board’s search process for the university’s next president.

The board also discussed a process and timeline to appoint an interim university president during the week of April 12.

Board members heard an update on the interim president selection process from Trustee Patty Bedient, who was asked by Chair Rani Borkar to serve as her delegate in conducting the nomination and community engagement process.

This week and next, Bedient is meeting with OSU faculty, staff, student leaders, administrators, university partners and stakeholders to gather nominations for interim president and input on the focus for the interim president and experience needed.  Meanwhile, the Board of Trustees has launched a web page on the process to select an interim president.

Board members agreed with Bedient and the input she has heard from stakeholders that it is best to consider candidates from within OSU to serve as interim president.

“We are seeing strong internal leaders recommended in the web survey and conversations,” Bedient said. “People want someone that knows the university and our current initiatives, knows our strategic plan and vision, and can keep the momentum going.”

She said Acting President Edward Feser has said that he is not a candidate for the interim position, as he prefers to return to the role of OSU provost and executive vice president. She said that President Emeritus Ed Ray, who returned to the faculty on June 30 after 17 years as OSU president, told her that he believes the university has talented leaders who can take this role and sees value in having someone else serve as interim president, rather than stepping back into the role himself.

Bedient said the process to gather nominations and input regarding an interim president will continue through April 9, leading to a public meeting of the Board of Trustees the week of April 12 when they will discuss a finalist for the appointment.

“The input that I have heard so far prioritizes that the interim president must have a demonstrated commitment to the university’s core values and be able to build trust and confidence within the university community of faculty, staff and students and external stakeholders,” Bedient said.

Those sharing input also told Bedient they want a leader with existing knowledge of the university and its academic focus and someone who has a commitment to shared governance.

Bedient said once a final candidate is proposed for board consideration, a community forum will be held before a vote by the Board of Trustees.

“A community forum with the final candidate is a great opportunity for the community to hear from the candidate and the board to hear from the community,” Bedient said.  

“The interim president also must make the university’s review of interpersonal violence prevention and survivor support their priority and lead efforts to improve those services and programs, and the work of the university’s Title IX office.”

Trustees agreed that the interim president will serve for approximately one year as the board conducts a search for a new president. Trustees also expressed an openness to allowing the person selected as interim president to be considered as a candidate in the search process for a new president.

In other business, the board approved recommendations to adjust the reporting structure for the Center for the Humanities and to formally sunset the Center for Latin@ Studies and Engagement, which has been inactive for several years.

During the meeting, trustees heard an update from Acting President Edward Feser and Vice Provost Dan Larson on the university’s response to the COVID-19 pandemic and planning for resuming on-site instruction, research, employment and OSU Extension and engagement programs statewide, dependent upon guidelines by the governor’s office, the Oregon Health Authority and local county health departments.

The board heard reports from representatives from OSU’s Faculty Senate; the OSU Foundation; Associated Students of OSU; and Associated Students of Cascades Campus. Trustees also heard public comment from two members of the community.

On Thursday, three board committees met:

• The Academic Strategies Committee heard a report on new and existing academic program reviews and professional accreditations in progress. The committee also heard briefings on undergraduate and graduate academic programs and financial aid and enrollment.
• The Finance and Administration Committee approved moving the $5 million remediation of Owen Hall to the design phase. The building, which is home to College of Engineering facilities, sustained significant damage due to flooding in June 2020. Insurance will cover the $2 million in damage caused by the flooding. The remainder of the money will be used to renovate classrooms in the building. The committee also heard quarterly reports on university investments and financial management of the university and accepted the fiscal year 2020 annual internal bank report.
• The Executive and Audit Committee approved the annual progress report from the Office of Audit, Risk and Compliance. The committee also heard reports on public safety and crisis response, enterprise risk management and potential risks associated with the university’s information technology ecosystem.