Financial Analysis of Oregon Tech in the Middle of the Coronavirus - - PowerPoint PPT Presentation

SLIDE 1

Financial Analysis of Oregon Tech in the Middle of the Coronavirus Pandemic

Howard Bunsis Professor of Accounting, Eastern Michigan University Past Chair, AAUP Collective Bargaining Congress May 14, 2020 1

SLIDE 2

May 11 Notice on Furloughs from the President of Oregon Tech

https://www.oit.edu/coronavirus

• Because of expected state funding shortfalls, we estimate a $4.5 million gap in

the 2020-21 budget. The pandemic has also impacted our current year’s revenue stream, particularly in auxiliaries such as housing and dining. It is important that we start implementing cost-saving measures right away to avoid taking the brunt

• f the budget gap entirely in the next academic year.
• It is in that spirit, we are implementing a furlough program for classified and

unclassified staff, to save approximately $2.0 million between now and the end of the calendar year

• We will begin our furlough program on May 17, and it will operate through

December 31, 2020. We anticipate that nearly all of our classified and unclassified staff will participate in Work Share at a 20% furlough (1 day a week), with some employees up to 40% (2 days a week)

• We most sincerely appreciate the engagement and collaborative leadership of
• ur SEIU Local and our Administrative Council in developing this approach. After

meeting over the past two weeks to discuss the Work Share program, among

• ther options, the University and SEIU signed a Letter of Agreement last week

2

SLIDE 3

Furlough Summary Reported by the OIT Administration May 11, 2020

3

• This table is VERY misleading
• The average reduction will be 6% of annual salary
• The average hit will be over 9% of salary when considering the

furloughs are being implemented from May 17 to December 31

• Details in a later slide

SLIDE 4

Oregon Tech 2019 Revenue Distribution

Source: Audited Financial Statements

4

28% 26% 19% 9% 7% 6% 4% 2%

35% 33% 4% 12% 9% 3% 4% 0%

0% 5% 10% 15% 20% 25% 30% 35% 40%

State Appropr Tuition and Fees Cap Gifts/Grants Auxiliaries Financial Aid Grants Other Grants/Contracts Investments

Accrual Basis Cash Basis

SLIDE 5

Oregon Tech 2019 Revenue Distribution: Numbers and Percentages

Source: Audited financial statements 5

Accrual Basis Cash Basis Accrual Basis Cash Basis State Appropriations

29,401 29,268 28% 35%

Tuition and Fees

27,382 27,687 26% 33%

Capital Gifts/Grants

19,503 3,278 19% 4%

Auxiliaries

9,591 9,565 9% 12%

Financial Aid Grants

7,158 7,135 7% 9%

Other

5,792 2,559 6% 3%

Grants and Contracts

4,208 3,244 4% 4%

Investments

1,636 2% 0%

Total Revenues

104,671 82,736 100% 100%

SLIDE 6

Two Main Revenue Sources Over Time

Source: Audited financial statements

6

In Thousands

2014 2015 2016 2017 2018 2019

Tuition and Fees 21,488 21,933 23,947 24,673

25,717 27,352

State Appropriation

18,207 20,439 25,176 26,655 27,957 29,268

15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 2014 2015 2016 2017 2018 2019

Tuition and Fees State Appropriation

SLIDE 7

7

The Response to the Pandemic in the State of Oregon and Nationally

SLIDE 8

Oregon Colleges Face Uncertain Enrollment Despite Revamped Recruitment

• The Register-Guard
• May 3, 2020
• Colleges like the University of Oregon rely heavily on student enrollment to

keep their budgets afloat.

• “The impacts of all of this in admissions will be seen for years,” said Noah

Buckley, admissions director at Oregon State University.

• The University of Oregon extended its decision date to Sept. 1.
• After seeing UO’s late deadline, OSU decided to also extend to Sept. 1

8

SLIDE 9

Oregon universities prepare for budget crisis

By Elizabeth Miller Oregon Public Broadcasting Apr 28, 2020

• Both EOU and Portland State have told employees no jobs would be cut

this term.

• Portland State’s Board of Trustees recently voted to use reserves to help

cover some of the university’s losses related to COVID-19. The university said additional cost-saving measures will likely be announced later this spring.

• Most universities have canceled travel. Some universities have

implemented a hiring freeze or pay cuts for employees. Citing a projected loss of $25 million, University of Oregon announced layoffs for 282 employees.

• Factoring in the $1.7 million SOU will directly receive from the CARES Act,

the university still needs $2.8 million in the short term. But as the virus continues, long-term impacts to universities could be much worse.

9

SLIDE 10

President Naganathan Messages: 4/29; 5/1, 5/8

• https://www.oit.edu/coronavirus
• Want in-person classes in fall; work with Governor and HECC
• VP/CFO position no longer vacant; incumbent staying 6 months
• President taking a 10% pay cut
• Trimming travel
• Partial hiring freeze
• Program Reduction and Elimination Committee (PREC) is meeting later today to

begin its recommendation process; analyzing whether we have departments or programs that can be eliminated—or perhaps consolidated—to realize additional cost savings through increased efficiencies.

• HECC has estimated a 17% decrease in funding for our next fiscal year budget,

running from July 1, 2020 to June 30, 2021 – this is not reported on the HECC website

10

SLIDE 11

Advice on Committees to Eliminate Programs

• The admin wants faculty cover to make changes
• Program eliminations do not yield significant changes
• Admins like to show these changes to legislators, saying they are

serious about belt-tightening and standing up to faculty

• Advice: Don’t do it
• Do not even sit on these committees;
• If the faculty will not leave the committee, and if most really believe the

admin wants to do the right thing, then . . .

• They are going to make the cuts no matter what faculty say, and

hopefully your union contract will protect faculty from cuts

11

SLIDE 12

National Response

• 20% Enrollment Decline for Fall 2020 Is Now Part of the Landscape

Inside Higher Education, April 29, 2020

• Projection comes from SimpsonScarborough a higher education research and

marketing company.

• All their clients are administrations
• The Coronavirus Enrollment Crash
• Chronicle of Higher Education, May 7, 2020
• From the article: What do colleges and dinosaurs have in common? The risk
• f extinction.

12

SLIDE 13

Inside Higher Education Update, 5/10/2020

• West Virginia University furloughs
• The Pittsburgh Post-Gazette reported that the approximately 875 employees being

furloughed include groundskeepers, custodial workers, clerical workers, as well as “various campus service workers.”

• WVU has about 6,000 full-time employees.
• Furlough, Job Cut Plan Approved for University System of Georgia.
• The system is working with its 26 colleges and universities to develop a new

spending plan for the 2021 that would feature a 14 percent reduction from the current fiscal year. Georgia's tax revenues dropped by roughly $1 billion in April.

• Most faculty and staff members would be required to take either 4 or 8 furlough

days under the plan, depending on their salary. Those with the largest base salaries will be required to take 16 furlough days, the equivalent of a 6.2 percent pay cut.

• The system chancellor and all presidents will take a 10 percent pay cut, which

includes 26 furlough days.

13

SLIDE 14

Public Regional Colleges Were Already Struggling. Covid-19 May Push Some to the Brink (Nevada State College)

• Chronicle of Higher Education
• MAY 11, 2020
• “Regional colleges are disproportionately dependent on aid from the

state government, and they have limited availability of alternative revenue sources. They do not have significant endowments, or wealthy donors to turn to,” said Thomas L. Harnisch, vice president for government relations at the State Higher Education Executive Officers Association, commonly known as Sheeo.

• “They serve disproportionate shares of low-income students, first-

generation students, and students from historically underserved communities.”

14

SLIDE 15

Fall 2020?

• American College Health Association Issues Guidelines for Reopening;

May 7, 2020

• The guidelines say colleges “can anticipate restrictions and limitations in

activities will be in place for the next 12-18 months, if not longer” and that “resumption of activities will be gradual and phased based on local public health conditions as well as institutional capacity.”

• The guidelines also say “meticulous adherence to public health practices,

including hand hygiene, physical distancing, proper cough/sneeze etiquette, frequent disinfection of common and high traffic areas, symptom assessment, temperature checks and face covering” is “the new normal” for campuses.

• OSU is “planning for” in-person classes
• UO is “aiming for” in-person classes

15

SLIDE 16

More Fall 2020 Plans

• Purdue University is forging ahead with plans to reopen for face-to-face

instruction come fall, despite faculty concerns about that timeline

• Give faculty a choice on how to teach
• Move larger classes to spring term
• Hybrid classes
• President Trump, in a Fox News virtual town hall on May 4, said he wants

K-12 schools and universities to reopen in September.

• California State U. System Will Conduct Most Fall Classes Online
• May 12, 2020
• Chancellor Timothy P. White told California State trustees that it would be

irresponsible to bring the system’s nearly 500,000 students back to its 23 campuses in the fall.

• Even if fall classes started in person, White said, they would very likely have to be

scaled back in the event of a second wave. He said planning for online instruction now “preserves as many options for as many students as possible.”

16

SLIDE 17

Specific Faculty Concerns: Are you comfortable going to in-person in the fall?

• Chronicle of Higher Education, May 12, 2020
• Yes. College students are not a very high-risk group, and distance learning is a disaster.”
• “Yes. We belong on campus with our students.”
• Our students’ ability to continue their programs if faced with the loss of employment,

continuation of home-schooling young children, and most importantly, illness.”

• “Enrollment deficits in 2020 that we may not be able to recover from, putting us at great

risk of not having a 2021.”

• “It is not sustainable for us to stay home another semester or year.”
• “No. We are prioritizing revenue over public health. We won’t have jobs to come back to

if we don’t keep our students, faculty, and staff healthy.”

• “Not at all. Classrooms will become incubators, and no amount of desktop cleaning will

prevent it.”

• “No, because I don’t trust my university to provide what we need to stay safe.”
• “Dying and killing others.”
• “Losing my job if we don’t return to campus in the fall.”

17

SLIDE 18

A Fall 2020 Possibility?

• Stanford University is discussing the possibility of holding classes in
• utdoor tents come the fall, Mercury News

18

SLIDE 19

19

Financial Situation of Oregon Tech as of June 30, 2019:

• Reserves
• Debt
• Cash Flows
• Result: Solid financial condition

SLIDE 20

Oregon Tech Balance Sheet (Blue = Green + Red)

Source: Audited financial statements

20 What makes up these assets? How much of the $106 million of net assets are reserves? Is there too much debt?

50,000 100,000 150,000 200,000 2015 2016 2017 2018 2019

Total Assets Total Net Assets Total Liabilities

SLIDE 21

Asset Breakdown Source: Audited financial statements Does not include $32 Million in assets of the Oregon Tech Foundation

21

2015 2016 2017 2018 2019

Cash and Investments

27,012 31,759 30,379 33,020 32,088

Capital Assets

95,257 93,615 97,159 103,088 114,421

Other Assets

12,572 9,440 9,886 10,235 16,028

Total Assets

134,841 134,814 137,424 146,343 162,537

20,000 40,000 60,000 80,000 100,000 120,000 140,000

Cash and Investments Capital Assets Other Assets 2015 2016 2017 2018 2019

SLIDE 22

Balance Sheet Detail: Adjustment for GASB 68 and 75 Pensions/Retiree Health Adjustments made by Oregon Tech in the audited statements

22

• Pensions were added in

full in 2016

• OPEB or retiree health

was added in full in 2018

• These adjustments are

made by the Oregon Tech administration in the audited statements, as these are all not true liabilities of OIT

Adjustments

2015 2016 2017 2018 2019

Deferred inflows - Pensions

4,116 1,467 161 388 1,916

Deferred Outflows - Pensions

876 1,483 9,011 6,059 6,592

Pension Liability

(2,133) 6,027 16,969 15,678 15,957

OPEB Liability

662 594 615 1,484 1,571

Compensated Absences

1,458 1,403 1,624 1,812 2,073

State Gov Rate Pool

1,783 1,722 1,642 1,545 1,426

Total Adjustment

5,010 9,730 12,000 14,848

16,351

As Reported 2015 2016 2017 2018 2019

Total Assets

135,717 136,297 146,435 152,402 169,129

Total Liabilities

111,952 63,417 70,012 72,812 74,340

Total Net Assets

23,765 72,880 76,423 79,590 94,789

As Reported

2015 2016 2017 2018 2019 Invested in Capital Assets 11,458 54,361 58,659 65,655 74,217

Restricted Expendable

6,789 4,762 5,284 3,382 8,992

Unrestricted

8,117 13,757 12,480 10,563

7,279

Total Net Assets

26,364 72,880 76,423 79,600 90,488

SLIDE 23

Adjusted Balance Sheet (As reported + adjustment)

Sources: Audited financial statements

23

Adjusted Balance Sheet

2015 2016 2017 2018 2019

Total Assets

134,841 134,814 137,424 146,343 162,537

Total Liabilities

106,066 52,204 49,001 51,905 51,397

Total Net Assets

28,775 82,610 88,423 94,438 111,140

Adjusted Net Assets

2015 2016 2017 2018 2019 Invested in Capital Assets 11,458 54,361 58,659 65,655 74,217

Restricted Expendable

6,789 4,762 5,284 3,382 8,992

Unrestricted

13,127 23,487 24,480 25,411 23,630

Total Net Assets

31,374 82,610 88,423 94,448 106,839

2019 Unrestricted as reported on prior slide 7,279 Adjustment per prior slide 16,351 True Unrestricted as reported by OIT admin 23,630

SLIDE 24

What are these pension and OPEB adjustments about?

• There was no pension liability on balance sheets until 2015
• In 2014, the government accounting standards board (GASB) added GASB 68,

which put the liabilities for defined benefit pension plans of public universities on the balance sheet. This was done at the behest of university administrators, who wanted to make their balance sheets look worse.

• In 2017, GASB added the OPEB liability to public university balance sheets, via

GASB 75

• Neither of these liabilities are real liabilities of OIT nor of any public university;

that is because the real backstop is the State of Oregon. These are state

• bligations. In fact, these liabilities are also properly on the balance sheet of the

State of Oregon.

• OIT makes the adjustments for these items in their audited statements (see note

10 of the 2019 audited statements)

• The bond rating agencies properly make these same adjustments – note though

OIT has debt, it borrows through the State and does not have

24

SLIDE 25

Net Asset Categories: 2019 Net Assets of $106.8 Million: Reserves are $32.6 Million

Source: Audited financial statements

25

Category Discussion Amount Reserves?

Invested in capital assets: this is the value of the buildings, and this component of net assets does not tell us anything about the financial freedom or flexibility of OIT. Not part of reserves 74,217 Restricted expendable net assets These are net assets that are set aside for a specific purpose, and the reserves can only spent for that purpose. This component IS included in the calculation of reserves 8,992

8,992

Unrestricted Net Assets Unrestricted means unrestricted. The administration may claim that unrestricted net assets are already spoken for. If the reserves were truly spoken for and contractually committed, the amounts would not be in the unrestricted category. 23,630

23,630

Total Net Assets 106,839 32,622

SLIDE 26

What the Administration May Claim About Reserves vs. Reality

26

What the Administration Will Claim What is Reality

The reserves are not nearly that high, as so much of the reserves are restricted by the endowment and donor restrictions

The unrestricted reserves do not include any funds restricted by donors

Most of the reserves are already designated by Board policy for important student initiatives; even if we wanted to move some of the funds, we are not allowed to do so

If there is a firm, no-way-you-can-get-out-of-it commitment, then the external auditors would put those funds in the restricted-expendable category of net assets; the Board may have voted for certain initiatives, but those priorities can be changed at the discretion of the Board.

Reserves cannot be spent on recurring expenses such as faculty salaries, and we would be violating our fiduciary responsibility if we used reserves in a haphazard manner Reserves should not be spent on recurring expenses, but reserves ARE there for this exact purpose: to deal with temporary and unexpected declines in revenues or increase in expenses. That is EXACTLY the situation we are in now with the coronavirus pandemic

SLIDE 27

Reserves Over Time

Source: Audited financial statements

27

2015 2016 2017 2018 2019 Unrestricted 13,127 23,487 24,480 25,411 23,630 Restricted Expendable 6,789 4,762 5,284 3,382 8,992 Total Reserves 19,916 28,249 29,764 28,793 32,622

5,000 10,000 15,000 20,000 25,000 30,000 35,000

2015 2016 2017 2018 2019 Unrestricted Restricted Expendable

SLIDE 28

Reserves in Context: 4.25 months of expenses in reserves is a solid amount

28 2015 2016 2017 2018 2019 Unrestricted 13,127 23,487 24,480 25,411 23,630 Restricted Expendable 6,789 4,762 5,284 3,382 8,992 Total Reserves 19,916 28,249 29,764 28,793 32,622

Total expenses

61,388 70,548 75,017 80,478 92,018

Primary reserve ratio

32.4% 40.0% 39.7% 35.8% 35.5%

Number of months in reserve

3.89 4.81 4.76 4.29 4.25

Unrestricted + Restricted = Total Reserves Total Reserves / Total Expenses = Primary Reserve Ratio Number of Months = Primary reserve ratio * 12 (months) The 4.25 months would still be 3.08 months for unrestricted reserves only

SLIDE 29

Total Reserves vs. Cash and Investments Over Time

Source: Audited financial statements

29 Year Cash and Investments Total Reserves

2015

27,012 19,916

2016

31,759 28,249

2017

30,379 29,764

2018

33,020 28,793

2019

32,088 32,622

5,000 10,000 15,000 20,000 25,000 30,000 35,000 2015 2016 2017 2018 2019

Cash and Investments Total Reserves

SLIDE 30

Reserves and Debt (Low Debt Levels) Viability Ratio = Reserves / Debt

Source: Audited financial statements 30

2015 2016 2017 2018 2019

Total Reserves

19,916 28,249 29,764 28,793 32,622

Total Debt

93,594 41,136 42,783 42,912 45,614

Viability Ratio

21% 69% 70% 67% 72%

20,000 40,000 60,000 80,000 100,000 2015 2016 2017 2018 2019

Total Reserves Total Debt

SLIDE 31

Operating Cash Flow Results Positive Cash Flows Every Year

Source: Audited Financial Statements, Statement of Cash Flows

31

2015 2016 2017 2018 2019

Tuition and Fees

22,614 24,908 24,402 25,724 27,687 State Appropriation 20,439 25,176 26,655 27,957 29,268

Auxiliary

7,950 8,306 9,491 8,929 9,565

Grants and contracts

5,249 3,580 4,699 7,156 6,522

Financial aid grants

7,998 7,280 6,940 6,912 7,135

Other

913 1,179 710 1,646 2,559

Total Cash In

65,163 70,429 72,897 78,324 82,736

Payments to Employees

(39,837) (42,885) (46,385) (49,833) (54,060)

Payments to suppliers

(14,910) (13,334) (15,175) (16,378) (21,541)

Student financial aid

(4,674) (4,644) (5,491) (5,105) (5,048)

Total Cash out

(59,421) (60,863) (67,051) (71,316) (80,649)

Net Operating Cash Flows

5,742 9,566 5,846 7,008 2,087

SLIDE 32

The Financial Condition of Oregon Tech at the end of 2019: In the Words of the Administration

Source: Audited financial statements

32

Although Oregon Tech is exposed to many financial and strategic risks, some within and some outside of the institution’s control,

it remains financially healthy and enjoys growing

recognition and market position. As the Northwest’s only polytechnic university, it continues to see strong student demand and is actively sought by government, industry, and other educational partners.

SLIDE 33

33

Examination of Tuition and the State Appropriation:

• Enrollment Levels and Changes
• Tuition Price and Discount Rate
• State appropriation
• Potential Losses for 2020 and beyond

SLIDE 34

Enrollment

Sources: OIT Office of Institutional Research; Common Data Set and 4th Week Fall SCARF reports

34

2014 2015 2016 2017 2018 2019 2020 Undergrad 4,373 4,218 4,730 5,154 5,384 5,212 5,178 Grad 41 55 56 78 106 129 141 Total 4,414 4,273 4,786 5,232 5,490 5,341 5,319

3,000 3,500 4,000 4,500 5,000 5,500 6,000 2014 2015 2016 2017 2018 2019 2020

Total Headcount Enrollment

SLIDE 35

Annual Changes in Enrollment vs. Rest of Oregon 4-Year Publics

35

# Changes 2014 to 15 2015 to 16 2016 to 17 2017 to 18 2018 to 19 2019 to 20 Undergrad (155) 512 424 230 (172) (34) Grad 14 1 22 28 23 12 Total (141) 513 446 258 (149) (22) % Changes 2014 to 15 2015 to 16 2016 to 17 2017 to 18 2018 to 19 2019 to 20 Undergrad

• 3.5%

12.1% 9.0% 4.5%

• 3.2%
• 0.7%

Grad 34.1% 1.8% 39.3% 35.9% 21.7% 9.3% Total

• 3.2%

12.0% 9.3% 4.9%

• 2.7%
• 0.4%

Rest of Oregon Publics

• 0.5%
• 0.3%
• 1.0%
• 0.2%
• 1.2%
• 0.04%

All Oregon Publics per HECC 2014 2015 2016 2017 2018 2019 2020 Resident 70,475 68,520 67,558 66,076 65,935 64,850 64,509 Nonresident 32,599 33,955 35,169 36,141 36,380 36,157 36,437 Total 103,074 102,475 102,727 102,217 102,315 101,007 100,946 Take out OIT 98,660 98,202 97,941 96,985 96,825 95,666 95,627

SLIDE 36

Annual Percentage Changes in OIT Enrollment vs. Rest of 4-Year Oregon Publics Graphically

36

• 3.2%

12.0% 9.3% 4.9%

• 2.7%
• 0.4%
• 0.5%
• 0.3%
• 1.0%
• 0.2%
• 1.2%
• 0.04%
• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% 14%

2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018 2018 to 2019 2019 to 2020

Oregon Tech Rest of Oregon Publics

SLIDE 37

Oregon Tech: Annual # Changes in Headcount Enrollment Graphically

37 (300) (200) (100) 100 200 300 400 500 600 Undergrad Grad 2014 to 15 2015 to 16 2016 to 17 2017 to 18 2018 to 19 2019 to 20

SLIDE 38

Long-term Changes in Enrollment Oregon Tech vs. Rest of Oregon 4-Year Publics

38

18.5%

• 1.7%

1.7%

• 1.4%

20.5%

• 3.1%
• 5%

0% 5% 10% 15% 20% 25% Oregon Tech Rest of Oregon Publics

2014 to 2017 2017 to 2020 2014 to 2020

SLIDE 39

Enrollment by Residency:

Sources: HECC 4th Week Count and SCARF reports for non-resident alien

39

2014 2015 2016 2017 2018 2019 2020

Resident Only 3,238 3,157 3,588 3,915 4,187 4,083 4,079 Nonresident 1,176 1,116 1,198 1,317 1,303 1,258 1,240 Total OIT 4,414 4,273 4,786 5,232 5,490 5,341 5,319

Percent from Oregon OIT 73.4% 73.9% 75.0% 74.8% 76.3% 76.4% 76.7%

% from Oregon Other Oregon Publics

68.2% 66.6% 65.3% 64.1% 63.8% 63.5% 63.2% Non-resident alien per SCARF 53 43 78 92 127 116 111

As % of Total 1.2% 1.0% 1.6% 1.8% 2.3% 2.2% 2.1%

2014 to 15 2015 to 16 2016 to 17 2017 to 18 2018 to 19 2019 to 20 Resident Only (81) 431 327 272 (104) (4) Nonresident (60) 82 119 (14) (45) (18) Total OIT (141) 513 446 258 (149) (22) 2014 to 15 2015 to 16 2016 to 17 2017 to 18 2018 to 19 2019 to 20 Resident Only

• 2.5%

13.7% 9.1% 6.9%

• 2.5%
• 0.1%

Nonresident

• 5.1%

7.3% 9.9%

• 1.1%
• 3.5%
• 1.4%

Total OIT

• 3.2%

12.0% 9.3% 4.9%

• 2.7%
• 0.4%

SLIDE 40

Residency Graphically

Source: HECC (Oregon Higher Education Coordinating Commission)

40

21%

• 8%

12% 11% 4%

• 3%
• 6%

1% 26%

• 10%

5% 12%

• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% OIT Resident Only Rest of Oregon Resident OIT Non- resident Rest of Oregon Non- Resident 2014 to 2017 2017 to 2020 2014 to 2020

Oregon Tech growing with Oregon residents, in contrast to the other Oregon publics Other Oregon publics growing more with non-residents

SLIDE 41

Enrollment by College

Source: Major Report at https://www.oit.edu/faculty-staff/institutional-research/majors-reports

41

2015 2016 2017 2018 2019 2020 Arts & Science 1,047 1,439 1,840 Health 1,339 1,418 1,459 Nursing 52 61 69 Total of above 3 2,438 2,918 3,368 Engineering 1,508 1,578 1,632 Management 450 418 371 Total of above 3 1,958 1,996 2,003 % Change 2015 to 2020 HAS (Health, Arts, Science) 2,438 2,918 3,368 3,651 3,523 3,491 43.2% ETM (Engineering, Tech, Mgmt) 1,958 1,996 2,003 1,971 1,965 1,978 1.0% Total, some duplication 4,396 4,914 5,371 5,622 5,488 5,469 24.4% Unduplicated 4,273 4,786 5,232 5,490 5,341 5,319 24.5% First year students 2015 2016 2017 2018 2019 2020 Unduplicated 505 464 511 449 454 503

• 0.4%

SLIDE 42

Tuition and Fees Price

Sources: IPEDS https://www.oit.edu/college-costs/tuition-fees/calculator https://oregontechsfstatic.azureedge.net/sitefinity-production/docs/default-source/business-affairs-documents/tuition-fees/2020-2021- tuition-and-fees-by-program.pdf?sfvrsn=e27de977_2

42 2014 2015 2016 2017 2018 2019 2020 2021 Tuition and Fees $8,548 $8,445 $8,838 $9,625 $9,982 $10,118 $10,718 $11,269 Dollar Change (103) 393 787 357 136 600 551 % Change

• 1.2%

4.7% 8.9% 3.7% 1.4% 5.9% 5.1%

2020-2021 Per Term Annual 2019-20 Annual 2020-21 Annual $$ Change % Change Tuition $3,070.80 $9,212.40 $8,774 $9,212 $439 5.0% Student Rec Fee $69.00 $207.00 $207 $207 $0 0.0% Building Fee $45.00 $135.00 $135 $135 $0 0.0% Incidental Fee $399.50 $1,198.50 $1,101 $1,199 $98 8.9% Health Service Fee $172.00 $516.00 $501 $516 $15 3.0% Total Tuition and Fees $3,756.30 $11,268.90 $10,718 $11,269 $551 5.1%

SLIDE 43

Tuition Revenue and Discount Rate Over Time

43

2014 2015 2016 2017 2018 2019

Tuition and Fees, Gross

28,036 29,113 31,378 32,501 34,090 36,215

Allowances 6,548 7,180 7,431 7,828 8,373 8,863 Tuition and Fees, Net 21,488 21,933 23,947 24,673

25,717 27,352

Discount Rate 23.4% 24.7% 23.7% 24.1% 24.6% 24.5%

Tuition and Fees, Gross – Allowances = Tuition and Fees Net Discount rate: Numerator = Allowances Denominator = Tuition and Fees, Gross The administration will likely claim the rate is much higher, as they tend to report the rate only for first-year students

SLIDE 44

Peer Discount Rate, 2018

Oregon Peers and Peers Chosen by the Oregon Tech administration to IPEDS

44

Institution Name Discount Rate 2019 Tuition and Fees SOU 29.1% $9,615 Oregon Tech 24.6% $10,118 WOU 24.4% $10,197 Eastern Oregon 24.3% $8,679 PSU 19.7% $9,105 OSU 17.1% $11,166 UO 16.3% $11,898 Peer Average 21.8% $10,110 OIT vs. Peer Average 2.8% $8 Oregon Tech rank (of 7) 2 4

Institution Name Discount Rate 2019 Tuition and Fees Savannah State 63.2% $5,743 Arkansas Tech 40.8% $7,254 SW Oklahoma State 38.8% $7,335 West Liberty 32.0% $7,680 Louisiana Tech 32.0% $9,645 Weber State 31.1% $5,859 Midwestern State 30.4% $9,233 Pittsburgh-Bradford 29.5% $13,900 Idaho State 28.7% $7,420 SUNY Polytechnic 28.1% $8,238 Eastern Washington 27.6% $7,323 Oregon Tech 24.6% $10,118 Louisiana Monroe 21.3% $8,554 Indiana -Northwest 20.2% $7,344 Wisconsin-Platteville 16.7% $7,796 Peer Average 31.5% $8,095 OIT vs. Peer Average

• 6.9%

$2,023 Oregon Tech rank (of 15) 12 2

SLIDE 45

Peer List from May 2017 Faculty Compensation Report

Study reported by MGT Consulting Group

N=50 Peers

45

Adams State University

Minnesota State University Moorhead

University of Central Arkansas Arkansas State University-Main Campus Minot State University University of Louisiana at Monroe Arkansas Tech University Missouri Western State University University of Maine at Farmington Armstrong State University Morehead State University University of Massachusetts-Dartmouth Boise State University Murray State University University of Michigan-Dearborn Central Connecticut State University Nicholls State University University of Montevallo Clayton State University Northern Kentucky University University of South Carolina-Aiken Columbus State University Purdue University-Calumet Campus University of Southern Indiana Florida Gulf Coast University Shepherd University University of Wisconsin-Stout Fort Lewis College Southeast Missouri State University West Texas A & M University Francis Marion University Southern Utah University Western Carolina University

Indiana University-Purdue University-Fort Wayne Southwestern Oklahoma State University

Western Kentucky University Keene State College SUNY College at Brockport Western Oregon University Lander University Texas A & M International University Winona State University Marshall University Texas State University Winthrop University McNeese State University The University of Texas at Tyler Worcester State University Metropolitan State University of Denver Youngstown State University

SLIDE 46

Discount Rates of Peer Institutions: Data per IPEDS Correlation = +0.23

46

Discount Rate 2019 Tuition and Fees Oregon Tech 24.6% $10,118 Peer Average 33.1% $9,028 Oregon Tech vs. Peer Average

• 8.5%

1,090 Oregon Tech Rank (of 50) 39 14 High (Fort Lewis) 66.3% $15,730 75th Percentile 41.5% $10,161 Median 33.2% $8,554 25th Percentile 26.2% $7,691 Low (Central Conn St) 11.4% $3,926

SLIDE 47

Annual % Changes in Enrollment, Tuition Price and Tuition Revenue

47

2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018 2018 to 2019 2019 to 2020 2020 to 2021

Enrollment

• 3.2%

12.0% 9.3% 4.9%

• 2.7%
• 0.4%

Tuition Price

• 1.2%

4.7% 8.9% 3.7% 1.4% 5.9% 5.1% Tuition Revenue 2.1% 9.2% 3.0% 4.2% 6.4%

• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018 2018 to 2019 2019 to 2020 2020 to 2021 Enrollment Tuition Price Tuition Revenue

SLIDE 48

State Appropriation Detail

Source: Audited Financial Statements

48 2014 2015 2016 2017 2018 2019 General Fund - Operations 17,763 19,996 24,719 26,198 27,500 28,812

General Fund - SELP Debt Service

2,496 2,421 189 190 157 133 Lottery Funding 444 443 457 457 457 456 Total 20,703 22,860 25,365 26,845 28,114 29,401 General Fund - Operations 17,763 19,996 24,719 26,198 27,500 28,812 Lottery Funding 444 443 457 457 457 456 Total Appropriation per Income Statement and Cash Flow Statement

18,207 20,439 25,176 26,655 27,957 29,268

SLIDE 49

Annual Changes in the State Appropriation, 2009 to 2019

Source: Audited Financial Statements and IPEDS for 2009 to 2013 (Integrated Postsecondary Education Data System of the U.S. Dept. of Education) 49 Year Appropriation $ Change % Change 2009 15,949 2010 17,587 1,638 10.3% 2011 18,259 672 3.8% 2012 15,290 (2,968)

• 16.3%

2013 16,613 1,323 8.7% 2014 18,207 1,593 9.6% 2015 20,439 2,232 12.3% 2016 25,176 4,737 23.2% 2017 26,655 1,479 5.9% 2018 27,957 1,302 4.9% 2019 29,268 1,311 4.7% A 17% cut of $4.5 million is being suggested for 2020, which would be the largest in this time period The cut is $4.5 million including tuition revenue according to the Oregon Tech President

SLIDE 50

State Appropriation, 2019 and 2020

Sources: Audited financial statements; HECC Public University Budget Summary Report, FY 2019-20

50

2019 2020 General Fund - Operations 28,812,000 Lottery funding 456,000 Total Appropriaiton per Audit 29,268,000 2019 2020 $$ Change % Change Public University Support fund 27,455,306 29,421,164 1,965,858

7.2%

Public University State Programs 1,101,256 1,388,461 287,205 26.1% Targeted and One-time funding 255,000 367,500 112,500 44.1% Subtotal 28,811,562 31,177,125 2,365,563 8.2% Lottery Fund 456,620 1,220,280 763,660 167.2% Total All Funds 29,268,182 32,397,405 3,129,223 10.7%

SLIDE 51

Governor Kate Brown Statement on the State Budget: May 11, 2020

https://www.oregon.gov/newsroom/Pages/NewsDetail.aspx?newsid=36599

• One of the many challenging results of the COVID-19 pandemic is the dramatic impact on our
• economy. With many Oregon businesses restricted or shut down, travel suspended and jobs

lost, we expect the revenue that we receive to fund state services will also be significantly reduced,” said Governor Brown.

• “We anticipate a significant budget impact in the state revenue forecast coming on May 20,

which will lead to some really difficult decisions. Our early discussions indicated this impact could be a reduction of $3 billion for the current budget period. We are exploring all available options to weather this recession, and I have directed state agencies to prepare prioritized reduction plans equaling a 17 percent reduction for the upcoming fiscal year as a planning exercise to explore all options.

• We haven’t made any final decisions, and the agency plans serve as important information

gathering at this point. We know a potential cut of this magnitude would be extremely drastic.

• “Whether the state will need to implement this level of cuts will be dependent on several

factors, most importantly the need for additional federal funding to support state services, including our K-12 public school system. I will continue to work with Oregon’s congressional delegation in calling for more federal support. I will also work closely with Legislative leadership on the best ways to balance the budget. I am committed to doing so in a thoughtful, collaborative manner that explores all tools available.”

51

SLIDE 52

Where is the 17% Hit Coming From

Sources: Oregon Revenue and Economic Forecast, March 2020; State Comprehensive Financial Reports, 2018 and 2019

52

From the March 2020 Revenue Forecast:2020 and 2021 Combined in Millions Per Budget

3 Billion Reduction as a Percent

Personal Income taxes 18,473 16.2% Corporate Income taxes 1,313 Other taxes 1,673 Total 21,458 14.0% Total Taxes per General Fund in CAFR 2018 2019 Combined

3 Billion Reduction as a Percent

Personal Income 8,964 9,938 18,901 15.9% Corporate Income 804 911 1,715 All Other Taxes 727 865 1,592 Total Tax Revenues 10,495 11,713 22,209 13.5%

SLIDE 53

From OIT President, 4/29/2020

• Oregon Tech benefits considerably from the Sports Lottery program

which is likely to have a large reduction next year, though at this point there is little clarity into the timing and total amounts.

• Given information made available yesterday through HECC, the

cumulative impact of the state’s situation is likely to be in the range of 15% to 20% reduction in the state funding to Oregon Tech during the next year.

• If we assume at least a 1% growth in student enrollment, the

estimated net reduction in our revenue would be about 4.5 million dollars.

53

SLIDE 54

Estimated Hits on State Appropriation and Other Items

CARES Act funding at: https://www.insidehighered.com/news/2020/04/10/listing-funds-each-college-can-expect-receive-under-federal-stimulu

54

Item Amount Worst Case More Likely Case Lottery Funding 2020

1,220,280

Worst case: 50% reduction/25% likely

(610,140) (305,070)

Public University Support fund 2020

29,421,164

Worst Case: 17% Cut/12% likely

(5,001,598) (3,530,540)

Auxiliaries

9,565,000

10% cut/5% more likely

10% (956,500) (478,250)

Total Reductions

(6,568,238) (4,313,860)

Increase in Tuition Revenue 2019 Tuition Revenue

27,352,000

Estimated Increase (-0.4% enrollment with 5% price increase)/3% more likely

2% 547,040 820,560

CARES Act

1,807,273

Reduction for student financial aid

(903,637) 903,636 903,636

Total Increases

1,450,676 1,724,196

Net Hit

(5,117,562) (2,589,664)

SLIDE 55

Estimated Hit in Context

55 5,117,562 2,589,664 23,630,000

5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

Worst Case More Likely Case Unrestricted Reserves

SLIDE 56

What About the $2M in Furlough Savings? These Will Lead to Significant Reductions for Most Employees

(Taking out the 10% presidential cut does not change the results)

56

Aproximate savings per president

2,000,000

Approximate 2020 Salaries for All OIT employees

35,246,579

Percent of Salary reduced by furlough based on annual payroll

5.7%

Aproximate savings per president

2,000,000

Salaries from May 17 to 12/31/2020

22,322,834

Percent of Salary reduced by furlough based on remaining 2020 payroll

9.0%

How Were Salaries Estimated: 2019 Salaries and benefits per Audit 54,060,000 63.3% of these are salaries per IPEDS; this is estimated 2019 salaries 34,219,980 3% increase on 2019 salaries; this is estimated 2020 salaries 35,246,579

If the 10% cut by the president is taken out, the percentages are 5.6% and 8.9%

SLIDE 57

57

Examination of the Expenses and Priorities

• f the Oregon Tech Administration:
• Faculty Costs
• Upper-Level Administrative Costs

SLIDE 58

2019 Expense Distribution, Functional Categories

Source: Audited financial statements

58

2019 $$ % of Total Instruction 32,568 35.4% Research 4,601 5.0% Public Service 154 0.2% Academic Support 10,070 10.9% Student Services 6,427 7.0% Auxiliary Services 11,698 12.7% Institutional Support 13,133 14.3% Maintenance 4,713 5.1% Student Aid 5,135 5.6% Other 3,519 3.8%

Total Operating Expenses

92,018 100.0%

• Institutional support is upper-level admin;
• Public service, academic support, and student

services have elements of both administration and non-administration (non-union) items

• Auxiliaries includes housing, dining, student

union, parking, bookstore, and athletics

35.4% 5.0% 0.2% 10.9% 7.0% 12.7% 14.3% 5.1% 5.6% 3.8%

Instruction Research Public Service Academic Support Student Services Auxiliary Services Institutional Support Maintenance Student Aid Other

SLIDE 59

2019 Expense Distribution, Natural Classification

59

2019 $$ % of Total Comp and Benefits 56,374 61.3%

Services and Supplies

24,958 27.1% Scholarships 5,048 5.5% Depreciation 5,563 6.0% Other 75 0.1% Total Operating Expenses 92,018 100.0% 61.3%

0% 10% 20% 30% 40% 50% 60% 70% Comp and Benefits Services and Supplies Scholarships Depreciation

SLIDE 60

2015 to 2019 Expense Distribution in Dollars and Percentages Decreasing Percentage for instruction Increasing Percentage for institutional support

Source: Audited financial statements 60

2015 2016 2017 2018 2019 Instruction 24,278 27,889 28,721 30,366 32,568 Research 574 848 2,018 2,908 4,601 Public Service 192 95 38 73 154 Academic Support 5,233 6,792 6,840 6,089 10,070 Student Services 3,800 4,412 4,729 4,932 6,427 Auxiliary Services 9,546 10,291 10,682 10,774 11,698 Institutional Support 6,244 8,446 8,685 11,661 13,133 Maintenance 3,047 4,249 4,351 4,465 4,713 Student Aid 4,792 4,556 5,471 5,215 5,135 Other 3,673 2,939 3,482 3,995 3,519

Total Operating Expenses

61,379 70,517 75,017 80,478 92,018

2015 2016 2017 2018 2019 Instruction 39.6% 39.5% 38.3% 37.7% 35.4% Research 0.9% 1.2% 2.7% 3.6% 5.0% Public Service 0.3% 0.1% 0.1% 0.1% 0.2% Academic Support 8.5% 9.6% 9.1% 7.6% 10.9% Student Services 6.2% 6.3% 6.3% 6.1% 7.0% Auxiliary Services 15.6% 14.6% 14.2% 13.4% 12.7% Institutional Support 10.2% 12.0% 11.6% 14.5% 14.3% Maintenance 5.0% 6.0% 5.8% 5.5% 5.1% Student Aid 7.8% 6.5% 7.3% 6.5% 5.6% Other 6.0% 4.2% 4.6% 5.0% 3.8%

Total Operating Expenses

100.0% 100.0% 100.0% 100.0% 100.0%

SLIDE 61

Compensation and Benefit Component of Expenses

Source: Audited financial statements

61

Comp and Benefits Only

2015 2016 2017 2018 2019 2015 2016 2017 2018 2019

Instruction

21,185 25,403 26,009 27,580 29,220 55.5% 52.7% 53.2% 52.7% 51.8%

Research

314 651 1,133 1,227 1,818 0.8% 1.4% 2.3% 2.3% 3.2%

Public Service

130 51 18 39 104 0.3% 0.1% 0.0% 0.1% 0.2%

Academic Support

3,909 5,431 5,240 4,535 4,653 10.2% 11.3% 10.7% 8.7% 8.3%

Student Services

2,718 3,629 3,818 4,069 4,616 7.1% 7.5% 7.8% 7.8% 8.2%

Auxiliary Services

3,347 3,958 3,789 4,167 4,614 8.8% 8.2% 7.7% 8.0% 8.2%

Institutional Support

4,550 6,324 6,278 8,043 9,284 11.9% 13.1% 12.8% 15.4% 16.5%

Other

1,995 2,746 2,628 2,674 2,065 5.2% 5.7% 5.4% 5.1% 3.7%

Total Comp and Benefits

38,148 48,193 48,913 52,334 56,374 100.0% 100.0% 100.0% 100.0% 100.0%

In thousands of Dollars

As a percent of total comp & benefits

Instruction 2015 2016 2017 2018 2019 Comp and Benefits 21,185 25,403 26,009 27,580 29,220 Services and Supplies 3,093 2,486 2,712 2,786 3,344 Scholarships 4 Total Instruction 24,278 27,889 28,721 30,366 32,568

SLIDE 62

Change in Comp and Benefits Component of Main Expenses, 2015 to 2019

Source: Audited financial statements

62

104% 70% 48% 38% 38% 19% 0% 20% 40% 60% 80% 100% 120%

Institutional Support Student Services Total Comp and Benefits Instruction Auxiliary Services Academic Support

2015 $ 2019 $ % Change Institutional Support 4,550 9,284 104% Student Services 2,718 4,616 70% Total Comp/Benefits 38,148 56,374 48% Instruction 21,185 29,220 38% Auxiliary Services 3,347 4,614 38% Academic Support 3,909 4,653 19%

SLIDE 63

How Expenses are Reported by/to IPEDS

63

Instruction IPEDS 2015 2016 2017 2018 Instruction - Salaries

16,100,526 16,710,131 17,581,135 18,395,503

Instruction - fringes

5,084,253

Not reported Not reported Not reported

Instruction - plant

1,483,214

Not reported Not reported Not reported

Instruction - Depreciation

1,967,895

Not reported Not reported Not reported

Instruction - Interest

1,432,736

Not reported Not reported Not reported

Instruction - Other

3,093,592

13,194,604 13,164,729 13,362,059 Instructon total per IPEDS 29,162,216

29,904,735 30,745,864 31,757,562

Salary + fringe IPEDS 21,184,779

Not reported Not reported Not reported

Comp + ben per audit 21,185,000 25,403,000 26,009,000 27,580,000

Because of the change in reporting structure, we will focus on the salary-only component of expenses

SLIDE 64

Salaries Only Component of Expense Distribution of OIT vs. 50-Peer Group Percent of Total Salaries / Total Salaries for Individual Expenses, 2018

Source: IPEDS

64

Instruction Research Instruction + Research Institutional Support Oregon Tech 56.2% 3.0% 59.2% 15.9% Peer Average 53.0% 2.0% 55.0% 12.1% Oregon Tech vs. Average 0.2% 2.1% 2.2% 3.7% Oregon Tech rank (of 7) 12 13 9 4

High

66.6% 9.5% 66.7% 18.5%

75th Percentile

56.0% 2.6% 58.2% 14.0%

Median

52.7% 1.0% 54.6% 12.3%

25th Percentile

50.4% 0.4% 52.7% 9.7%

Low

42.5% 0.0% 42.6% 6.7% High

Missour W Texas St Missour W Purdue FW

Low

Lander

Worc/Montv/Adams

Lander Maine Farm

OIT is 9th highest on the % spent on instruction + research OIT is 4th highest on the % of salaries spent on administration out of 50 peers

SLIDE 65

Salaries Only Component of Expense Distribution of OIT vs. IPEDS Peer Institutions Percent of Total Salaries / Total Salaries for Individual Expenses, 2018

Source: IPEDS; peers chosen by the OIT administration on IPEDS 65

Institution Name

Instruction Research Instruction + Research Institutional Support

SUNY Polytechnic Institute

26.4% 32.8% 59.2% 28.8% Oregon Tech 56.2% 3.0% 59.2% 15.9% Pittsburgh-Bradford 53.0% 0.0% 53.0% 15.8% Louisiana Tech 42.0% 17.1% 59.1% 15.1% Savannah State 46.3% 1.8% 48.1% 14.6% West Liberty U 51.8% 1.2% 53.0% 14.3% Weber State 55.5% 0.4% 55.9% 14.0% Arkansas Tech 47.8% 7.0% 54.9% 13.6% U of Louisiana at Monroe 44.8% 7.8% 52.6% 12.9% Wisconsin-Platteville 41.3% 0.7% 42.1% 12.5% Midwestern State 57.8% 1.3% 59.0% 11.9% Eastern Washington 49.9% 0.8% 50.7% 11.5% Idaho State 57.0% 8.4% 65.4% 10.9% Southwestern Oklahoma 64.3% 0.6% 65.0% 8.1% Indiana University-NW 66.7% 0.1% 66.8% 6.5%

Peer Mean

50.3% 5.7% 56.0% 13.6%

Peer Median

50.8% 1.2% 55.4% 13.2%

OIT vs. mean

5.9%

• 2.7%

3.2% 2.3%

OIT vs. median

5.4% 1.8% 3.8% 2.7%

OIT Rank (of 15)

5 6 4 2

OIT is 4th highest on the % of salaries spent on instruction + research OIT Is 2nd highest on the % of salaries spent on institutional support, or upper-level administration

SLIDE 66

Salaries Only Component of Expense: OIT vs. Oregon Peer Institutions Percent of Total Salaries / Total Salaries for Individual Expenses, 2018 per IPEDS

66 Instruction Research Instruction + Research Institutional Support Eastern Oregon 43.5% 1.4% 45.0% 17.3% Oregon Tech 56.2% 3.0% 59.2% 15.9% Southern Oregon 50.9% 0.8% 51.7% 14.4% Portland State 48.8% 8.1% 56.9% 12.0% University of Oregon 44.0% 8.9% 52.9% 10.9% Western Oregon 53.1% 1.1% 54.2% 9.5% Oregon State 36.9% 20.2% 57.0% 8.2% Peer Average 46.2% 6.7% 52.9% 12.0% Oregon Tech vs. Average 10.0%

• 3.7%

6.3% 3.8% Oregon Tech rank (of 7) 1 4 1 2

SLIDE 67

Number of Faculty

Source: Oregon Tech administration submission to IPEDS

67

Per IPEDS 2015 2016 2017 2018 2019 # Change 2015 to 2019 % Change 2015 to 2019 Professor 40 45 42 43 41

1 2.5%

Associate 37 40 46 43 50

13 35.1%

Assistant 65 65 61 64 51

(14)

• 21.5%

Instructor 8 11 9 14 26

18 225.0%

No Rank 4 1 Total 150 161 162 164 169

19 12.7%

IPEDS 2015 2016 2017 2018 2019 Tenured 71 77 79 78 84

13 18.3%

Tenure Track 63 63 64 63 57

(6)

• 9.5%

NTT 16 21 19 23 28

12 75.0%

Total 150 161 162 164 169

19 12.7%

Per CDS 2015 2016 2017 2018 2019 2020 Full Time no data no data no data 169 174 185 Part Time no data no data no data 136 161 112 PT per IPEDS 18 4 160 159 161

SLIDE 68

Number of Non-Instructional Employees per IPEDS

68

2015 2016 2017 2018 2019

Public service

9 8

Librarians and Academic Affairs

3 3 10 9 34

Management

25 25 23 22 41

Business and Financial Ops

60 70 73 79 55

Computer Engineering and Science

14 16 19 21 17

Community Legal Arts Sports, Media

7 10 9 8 25

Healthcare

1 3 1 1 3

Service

26 29 29 30 27

Office and Administrative Support

50 54 53 50 36

Maintenance

18 18 18 18 18

Transportation

1 1 2 1 1

Total

214 237 237 239 257

Change in Total from 2015 to 2019:

• Number change of 43
• Percentage change of 20.1%

SLIDE 69

Oregon Tech Faculty Salaries

Source: IPEDS (OIT does not submit data to the AAUP Survey)

69

2015 2016 2017 2018 2019 Professor $82,575 $82,395 $86,413 $87,676 $87,098 Associate $67,437 $63,504 $66,240 $68,339 $68,294 Assistant $55,287 $53,235 $55,297 $57,323 $57,844 Instructor $48,807 $39,852 $47,554 $48,592 $54,734 2015 to 2016 2016 to 2017 2017 to 2018 2018 to 2019

2015 to 2019

Professor

• 0.2%

4.9% 1.5%

• 0.7%

5.5%

Associate

• 5.8%

4.3% 3.2%

• 0.1%

1.3%

Assistant

• 3.7%

3.9% 3.7% 0.9% 4.6%

Instructor

• 18.3%

19.3% 2.2% 12.6% 12.1%

SLIDE 70

OIT Average Salaries of Non-Instructional Employees per IPEDS

70

Average Salaries per IPEDS 2015 2016 2017 2018 2019 Management $92,789 $92,915 $100,844 $114,618 $110,270

Computer Engineering and Science $68,199 $68,749 $69,708 $74,475 $78,794 Healthcare $39,696 $57,279 $44,544 $48,180 $65,099 Business and Financial Ops $50,968 $50,925 $53,024 $55,158 $55,061 Librarians and Academic Affairs $45,176 $45,804 $57,394 $57,763 $54,561 Maintenance $45,026 $45,666 $48,200 $50,823 $54,448

Community Legal Arts Sports, Media

$44,733 $42,351 $47,230 $50,154 $50,082 Office and Administrative Support $37,860 $36,934 $39,046 $41,504 $38,276 Transportation $43,560 $43,560 $37,272 $46,008 $36,912 Service $31,707 $32,091 $33,769 $35,005 $35,065 Public service $61,159 $64,974

SLIDE 71

Long-Term % Changes In Average Salaries, 2015 to 2019

Source: IPEDS; CPI-U Western Region (B/C) per Bureau of Labor Statistics 71

18.8% 12.1% 9.0% 5.5% 4.6% 1.3%

0% 5% 10% 15% 20% Management Instructor Inflation Professor Assistant Associate

SLIDE 72

Oregon Tech Salaries vs. 50-Peer List per IPEDS, 2019

72

Professor Assoc Asst Oregon Tech $87,098 $68,294 $57,844 Peer Average $86,909 $71,389 $63,037 OIT vs. Peer Average in $$ $189 ($3,095) ($5,193) OIT vs. Peer Average in % 0.2%

• 4.3%
• 8.2%

OIT Rank (of 50) 20 29 36

Max (Umass Dart all three)

$125,789 $99,876 $90,598

Median

$84,534 $69,889 $61,611

Min (Lander/Met Denver last two)

$65,101 $56,404 $50,011

SLIDE 73

States of the 50 Peers

73

Kentucky

4

Alabama

1

Alaska Nevada

South Carolina

4

Connecticut

1

Arizona New Jersey

Texas

4

Florida

1

California New Mexico

Arkansas

3

Idaho

1

Delaware Pennsylvania

Colorado

3

Maine

1

Hawaii Rhode Island

Georgia

3

Michigan

1

Illinois South Dakota

Indiana

3

New Hampshire

1

Iowa Tennessee

Louisiana

3

New York

1

Kansas Vermont

Massachusetts

2

North Carolina

1

Maryland Virginia

Minnesota

2

North Dakota

1

Mississippi Washington

Missouri

2

Ohio

1

Montana Wyoming

West Virginia

2

Oklahoma

1

Nebraska

Oregon

1

Utah

1

Wisconsin

1

SLIDE 74

Change in Faculty Salaries vs. 50-Peer List, 2015 to 2019 per IPEDS

74

Professor Assoc Asst OIT vs. Peer Mean, 2015 in $$ ($922) $29 ($3,243) OIT vs. Peer Mean, 2019 in $$ $189 ($3,095) ($5,193) Change from 2015 to 2019 in $$ $1,111 ($3,124) ($1,949)

OIT vs. Peer Mean, 2015 in %

• 1.1%

0.0%

• 5.5%

OIT vs. Peer Mean, 2019 in %

0.2%

• 4.3%
• 8.2%

Change from 2015 to 2019 in %

1.3%

• 4.4%
• 2.7%

OIT Rank (of 50) 2015

26 20 35

OIT Rank (of 50) 2019

20 29 36

Change

Better 6 Worse 9 Worse 1

SLIDE 75

Oregon Tech Faculty Salaries: Changes vs. 50-Peer List, 2015 to 2019 Graphically

75

($922) $29 ($3,243) $189 ($3,095) ($5,193)

($6,000) ($5,000) ($4,000) ($3,000) ($2,000) ($1,000) $0 $1,000 $2,000 $3,000

Professor Assoc Asst OIT vs. Peer Mean, 2015 in $$ OIT vs. Peer Mean, 2019 in $$

SLIDE 76

Oregon Tech Faculty Salaries vs. IPEDS Peers, 2019 per IPEDS

76

Institution Name Professor Associate Assistant

SUNY Polytechnic $119,170 $90,563 $73,420 Eastern Washington $105,657 $82,239 $73,746 Midwestern State $92,145 $77,772 $64,007 Weber State $91,484 $74,477 $69,649 Louisiana Tech $90,818 $74,504 $74,010 Pittsburgh-Bradford $87,412 $75,810 $59,895

Oregon Tech $87,098 $68,294 $57,844

Idaho State $86,660 $73,338 $65,522 Louisiana Monroe $85,989 $70,302 $62,096 Indiana -Northwest $85,317 $63,739 $57,117 Arkansas Tech $81,342 $66,900 $58,391 SW Oklahoma State $80,533 $64,399 $59,635 Wisconsin-Platteville $75,191 $63,322 $61,500 Savannah State $71,790 $59,874 $51,120 West Liberty $69,444 $67,309 $53,911

Peer Average $87,354 $71,753 $63,144 Oregon Tech vs. Peer Average in $$ ($256) ($3,459) ($5,300) Oregon Tech vs. Peer Average in %

• 0.29%
• 4.82%
• 8.39%

Oregon Tech Rank (of 15) 7 9 12

SLIDE 77

Change in Faculty Salaries vs. Peers, 2015 to 2019

77

Professor Associate Assistant

OIT vs. Peer Mean, 2015 in $$ $1,116 $242 ($3,476) OIT vs. Peer Mean, 2019 in $$ ($256) ($3,459) ($5,300) Change from 2015 to 2019 in $$ ($1,372) ($3,702) ($1,824) OIT vs. Peer Mean, 2015 in % 1.37% 0.36%

• 5.92%

OIT vs. Peer Mean, 2019 in %

• 0.29%
• 4.82%
• 8.39%

Change from 2015 to 2019 in %

• 1.66%
• 5.18%
• 2.48%

$1,116 $242 ($3,476) ($256) ($3,459) ($5,300) ($6,000) ($5,000) ($4,000) ($3,000) ($2,000) ($1,000) $0 $1,000 $2,000

Professor Associate Assistant OIT vs. Peer Mean, 2015 in $$ OIT vs. Peer Mean, 2019 in $$

SLIDE 78

Oregon Tech Faculty Salaries vs. Oregon Peers, 2019

78

Institution Name Professor Associate Assistant University of Oregon $133,136 $98,808 $88,593 Oregon State University $127,422 $97,579 $86,437 Portland State University $116,871 $88,988 $74,962 Southern Oregon University $89,354 $71,346 $61,882 Oregon Institute of Technology $87,098 $68,294 $57,844 Western Oregon University $83,400 $68,257 $51,961 Eastern Oregon University $78,986 $67,717 $56,794 Peer Average $104,862 $82,116 $70,105 Oregon Tech vs. Peer Average in $$ ($17,764) ($13,822) ($12,261) Oregon Tech vs. Peer Average in %

• 16.9%
• 16.8%
• 17.5%

Oregon Tech Rank (of 7) 5 5 5

SLIDE 79

Degrees Conferred per Common Data Set

79

2014 2019 Bachelors 590 706 Masters 8 24 Certificates 16 17 Associates 56 33 Total 670 780

100 200 300 400 500 600 700 800 900

2014 2019

Bachelors Masters Certificates Associates

SLIDE 80

Summary of What Can Be Done From a Financial Standpoint

80

There will be a decline in the State appropriation from Oregon, as well as an enrollment decline. The issues are:

• Can the decline be alleviated?
• What steps should be taken?

Management Solutions we have seen:

• Hiring freezes
• Furloughs
• Layoffs

Other Strategies:

• Work together to do everything possible to enhance the student

experience, even in a remote environment

• Reduce upper-level management spending
• Use reserves – this situation is EXACTLY what reserves are

designed to be used for

• Borrow – OIT has a medium level of debt and rates are low