News

PSU Trustees approve balanced budget for 2018-19
Author: Chris Broderick, PSU Communications
Posted: June 21, 2018

The Portland State University Board of Trustees on Thursday unanimously approved a $341 million operating budget for the 2018-19 academic year that balances revenues and expenses.

The budget is a 3.4 percent increase over the current year primarily due to increases in employee pay and benefits. About $268 million of next year’s operating budget are salaries, wages and pension and health insurance benefits. 

PSU’s main source of revenue is tuition, which is projected to generate an estimated $243 million next year. The balance of revenues comes from state support, grants, gifts, facility fees and other sources.   

Vice President for Finance and Administration Kevin Reynolds told board members that balancing the 2019-20 budget will be a greater challenge ahead because pension and health insurance costs will increase by about $10 million.  

Trustee Christine Vernier asked what can be done this year to improve the university’s budget picture to avoid a significant tuition increase in 2019-20.  Reynolds said PSU along with Oregon’s other six public universities will collectively ask the Legislature and governor to increase higher education funding during the next legislative session, and efforts to improve retention and graduation will help enrollment. Those are both uncertain, however, and PSU administration and the board are examining ways to maximize limited resources.