More than 500 students with cancelled grants get money

Of 6,150 Portland State students receiving the Oregon Opportunity Grant, 521 students had their grant completely cancelled due to state budget cuts.

Of 6,150 Portland State students receiving the Oregon Opportunity Grant, 521 students had their grant completely cancelled due to state budget cuts. However, Portland State plans to give back 75 percent of the formerly awarded funds so students can continue to go to school with the financial aid they need.

Portland State will use institutional resources as a short-term solution to cover the program’s shortfall in funding, but a long-term solution has yet to be determined.

Due to the popularity of the program and the recession, there were far more student applications than anticipated and not enough funding available.  

In response to an estimated $300 million to $600 million shortfall in the current biennium, the State of Oregon was forced to make budget cuts to all state programs, including the Oregon Opportunity Grant.

“Because of declining state revenues, the Governor ordered across-the-border budget cuts earlier this year,” said Molly Woon, Oregon Senate majority communications and outreach coordinator. “These cuts affected all state agencies, including higher education, so budget cuts, coupled with a higher than expected participation rate in the program, meant less money to go around for the remainder of the school year.”

Additional funding would have to come from requests by the Oregon Student Assistance Commission, but given the revenue outlooks, there will most likely not be any further requests for funds.

“A request for additional funding would have to come from the Oregon Student Assistance Commission, since the funding is via their budget,” said Portland State lobbyist Jesse Cornett in an e-mail. “They currently have no request to the legislature and given the revenue shortfall and pending cuts to all state programs, there is no request expected and therefore no decision that we could influence.”

Though Portland State will use institutional resources as a short-term solution to cover the program’s shortfall in funding, a long-term solution has not been planned.    

“A long term solution would require a structural change in Oregon’s revenue system,” Cornett wrote. “Despite the massive deficit the state is expected to face in the coming two year budget cycle, the Oregon legislature still appears to spend tens of millions of dollars more on the Oregon Opportunity Grant than they ever have before.”

Cornett indicated that the decision will keep funding at roughly its current level moving forward, almost double what was available just a year ago. Cornett also said that any long-term solution “would require a structural change in Oregon’s revenue system and enough of a period of economic increase to fully fund a ‘rainy day’ fund. There are solutions on the table, but I am doubtful they will be enacted.”

The Oregon Student Assistance Commission announced that the reduction will affect more than 30,000 Oregon college students, with a loss of $80 for full time 2- and 4-year students and $49 for part-time students in late March for the spring term 2009.