MEMORANDUM

To: ASUO Senate From: Sam Dotters-Katz, ASUO President Date: 11/12/2013 Subject: ASUO Incidental Fee Growth Cap
This memorandum is notice of the ASUO Executives intention to support a 3.5% budget growth cap for the 2014/2015 Incidental Fee recommendation to the University President and Oregon State Board of Higher Education. The Executive would like to clarify the status of the ASUO Incidental Fee growth cap this year. Based on language in the SB 270/HB 3120 legislative package, University fees are now capped at 5%. Subsequent to the passage of this legislation, the Oregon Legislature bought down tuition for the University of Oregon over the next two years, first to 3.5%, and later to a glide path that will reduce tuition growth to 0% for the 2014/2015 school year. The University Administration has decided to recommend extending the 3.5% growth cap to all institutional fees here at the UO, including the Incidental Fee. The main source of confusion for students comes with that word, recommend. To analyze this further, we should first cover what authority the UO Administration, ASUO Executive, and ASUO Senate have over the Incidental Fee. The ASUO has the authority to recommend an Incidental Fee budget to the UO Administration. The primary responsibility for crafting this recommendation is vested with the ASUO Senate. The Senate receives recommendations from the four finance committees and can amend these recommendations with full discretion. The ASUO Executive then has the power to veto the final budget recommendation, which the Senate can overrule with a 2/3 majority vote. If the UO Administration decides to alter our recommendation, the ASUO has the ability to appeal that decision to the Oregon State Board of Higher Education. The process for this appeal is outlined in the Clark Document, which can be found in the ASUO Green Tape Notebook. Starting next year, this process will go through the Universitys new Institutional Board of Trustees, which assumes power July 1, 2014. To be straightforward, the UO Administration has not informed the ASUO Executive whether they would veto or deny an Incidental Fee budget recommendation that went over the 3.5% recommended growth level. The ASUO Executive would like to give the ASUO Senate and ASUO Finance Committees the most complete and accurate information involving the ASUO budget process. Therefore, it is important that we are direct with our intention to veto any final budget recommendation that exceeds 3.5%. This is not a final decision, yet it is our current intention. We understand compliance with this directive will be difficult, and the ASUO Executive is fully committed to working with our colleagues in the legislative branch to rise to this challenge. We do not intend this memorandum to be received as an antagonistic threat. An Executive veto of a final budget recommendation is well within our authority, based upon the powers granted in our ASUO Constitution, just as the ASUO Senate has the power to override our decision if it chooses to do so. The Executive simply feels that it is in best interests of all parties to be upfront and transparent with our intentions.

EXECUTIVE OFFICE, ASSOCIATED STUDENTS OF THE UNIVERSITY OF OREGON (ASUO)

An Incidental feefunded program

Suite 4, Erb Memorial Union, 1288 University of Oregon, Eugene OR 97403-1288 T (541) 346-3724 F (541) 346-0620 http://asuo.uoregon.edu

An equal opportunity, affirmative-action institution committed to cultural diversity and compliance with the Americans with Disabilities Act.

MEMORANDUM
Working to reduce, slow or even freeze the growth of tuition and fees is the frontline struggle when it comes to access to and affordability of higher education. While tuition and fee growth in Oregon has been far slower than in neighbor states, it has still been constant for more than two decades. The Incidental Fee at the UO does tremendous things for students here on campus. However, unsustainable and constant 7% growth year after year has grown our budget and fee into one of the largest in the country. I believe this is exactly why State Representative Dembrow and State Senator Hass wrote our new reduced budget growth cap SB 270/HB 3120. If we as student leaders are to stand in front of the Oregon State Board of Higher Education, the State Legislature, or the future Institutional Governing Board and decry the constant growth of tuition and fees, we cannot in good faith refuse to take some initiative when it comes to the fee that we ourselves control. There has been good natured and thoughtful discussion on the issue of whether or not the ASUO should grow by more than 3.5% this year. The fact that we are under-realized by several hundred thousand dollars, which will further reduce our ability to grow, certainly makes this years budget process more difficult. Also, the Incidental Fee is different from other fees and tuition, in that it is controlled by students and directly benefits students. In fact, some of the entities on our budget should be deemed 100% essential for students at the University of Oregon. Childcare for student parents, resources for victims of sexual assault and prevention of sexual violence, and sustainable transportation options for students that are funded by Incidental Fee dollars are a few examples of what must be protected in difficult budgetary times. However, this does not mean that every expenditure of Incidental Fee dollars is essential. The ASUO Executive has worked with tremendous care to craft a budget recommendation that clearly embodies these priorities. To conclude, the ASUO Executive would like to commend all parties involved in this challenging budget cycle. Hard choices are going to have to be made, and our final budget will include some suffering for groups and organizations that only seek to grow and better serve students. We did not make this decision with ignorance of these concerns and frustrations. However, we believe that leaders must to step up in difficult times and make the difficult and occasionally unpopular choices based on the options they have. I am fully confident in the ability of student leaders in the ASUO to come together during this process, as opposed to allowing individual allegiances and preferences drive us apart.

Sincerely, Sam Dotters-Katz ASUO President

EXECUTIVE OFFICE, ASSOCIATED STUDENTS OF THE UNIVERSITY OF OREGON (ASUO)

An Incidental feefunded program

Suite 4, Erb Memorial Union, 1288 University of Oregon, Eugene OR 97403-1288 T (541) 346-3724 F (541) 346-0620 http://asuo.uoregon.edu

An equal opportunity, affirmative-action institution committed to cultural diversity and compliance with the Americans with Disabilities Act.