Western Oregon Journal

Future projections of Western's budget forecast a steady decline of funds into the dark, deep hole of negative.

Western's fund balance-total amount of revenue minus liabilities-plummeted from $9.4 million during the 2004 fiscal year to $4.9 million during the 2005 fiscal year.

The fund balance, according to Mark Weiss, vice president for finance and administration, is similar to cash in the bank. "It's to support deficits and even cash flow," he said. In other words, the fund balance's purpose is to keep Western going when tuition fees or state means may not be enough.

Currently, Western projects a steady decline to a fund balance of $2 million in 2006 and then to a €"$1.2 million in 2007.

The downward trend is a result of several factors, said Weiss. One being that "enrollment has not materialized." Projections for 2004 enrollment fell short of more than 150 students.

Increasing enrollment is a commitment for administration, according to Weiss. "We have the capacity for more students," he said. To help, Western recently hired a point man that will serve as the dean of enrollment and will, hopefully, aid in its recovery, Weiss said.

The diminished fund balance is also due to Western's past tuition plateau, according to Weiss.

Last year, Western froze tuition because of a large fund balance, Weiss said. While this may have been positive in the past, it's now taking its toll.

Due to a 3 percent legislative cap that exists over tuition increases each biennium, Weiss said, Western is unable to hover at the same level as the other public universities throughout the state.

"Because our tuition was frozen last year, we fell behind [of the other universities]," he said.

Western has the goal of saving $1 million this year and $4 million during the 2006-2007 academic year. This should prevent the fund balance from reaching a negative balance in 2007, Weiss said.

The goal will be reached through a variety of different tactics, he said.

The goals are aggressive, according to Weiss, and include the following:

• Improve low-enrolled classes
• Increase new-student retention
• Defer filling selected vacant positions
• Purchased Services reductions
• Increased donations
• Personnel and other cost reduction goals
  
• Defer/Freeze selected "management" salary increases

Reaching the goals will prevent Western's fund balance from seeping into the negative. If all pans out, the fund balance for 2007 should be between $1.8 million-$5.3 million; the target, Weiss said, being $3.6 million.

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