A committee created to discuss a change in fiscal policy could make a deliberation that might cause drastic cuts to parts of specific self-supportive student areas of the university or cause a raise in student fees next year.
The committee met Thursday to discuss an enacted change to the Oregon University System’s fiscal policy statement that went into effect December of last year. The change involves charging an undecided percentage of a department’s total budget to student activities and groups, athletics and auxiliary general education buildings. The charge is in place to pay for indirect costs.
Most units on campus are already charged an indirect fee of 12 percent. Until recently indirect fees for student groups and activities have not been charged for use of facilities.
The indirect costs include advertising, payroll, facilities and building maintenance fees and are expenses that cannot be charged directly to a specific organization because the costs benefit more than one organization.
”We’ve been trying to protect students in the past from these charges,” said budget analyst Susan Dodd. “We aren’t able to anymore.”
The discussion Thursday was for students to express their opinions on the policy change, which the committee has talked about for seven months.
Dodd, who also sits on the committee, said changes would be implemented once all opinions are heard. She said the committee agrees that cost for students should be kept down, but the Oregon University System has set a precedent and the university must follow it.
”It’s not like we agree with this charge either,” Dodd said about negative reactions to the new charges.
Two students attended the meeting, including student body President Courtney Morse. A second meeting will be held Nov. 16, which Morse said she would be promoting. She said she hopes to “amass an army of students.”
Student government has officially taken a stance against the indirect cost and is advocating for the lowest fee possible on students.
”It is critical to remember that the core of this problem is clear and should not be the one that relies on students to fix,” an official statement from the Associated Students of Portland State University (ASPSU) reads. “If we are truly to fulfill our mission of proving an affordable education, relieving these costs from students would be the responsible choice in this process.”
During the last few weeks, ASPSU members, including Morse, individually informed student groups of the possible repercussions. Morse said she has talked to Portland State President Daniel Bernstine about the indirect fee and that he is very supportive in keeping it as low as possible, although he has not taken an official stance for or against.
Dean of Students and committee member Wendy Endress said she wants to keep the fee as low as possible. She said resources would be affected by this change and that it would either reduce allocations for student groups, or increase the student fee.
”It’s logical to think that the increased expense would be passed on to students one way or another,” Endress said.
Endress said that in order to be in line with other Oregon universities and follow the directives given by the Oregon University Systems, PSU must charge this fee. She said it is up to PSU to decide how to implement this change and what percentages to charge each group. Endress said having the same guidelines for all organizations on campus is the right thing to do.
”It’s a good thing to be told you can’t just arbitrarily charge indirect costs,” Endress said.
Endress said that she has concerns about any extra cost being passed on to students. She said she does not see anywhere in the new policy that says PSU has to charge any specific percentage for any group and that if PSU wanted to charge zero percent, for instance, it could.
According to Dodd, the Oregon University System has said that it is not possible to charge zero percent, but if PSU wanted to, it could charge a very minimal amount, such as .01 percent.
Indirect fees pay for services most people do not recognize, according to Michael Burton, vice provost of extended studies. He said the fee should be kept as low as possible, but it still needs to exist.
”None of this stuff comes for free,” Burton said.
The policy reads: “It is OUS policy that auxiliary enterprise activities be self-supporting, generating sufficient operating revenues to cover operating expenses, including direct expenses and the allocable portion of indirect costs borne by other units of the university.”
Student quotes on the possible rise of student fees:
”That’s unacceptable. It’s a continued demonstration that Oregon does not value its universities and community colleges. They continue to pass the cost onto students.”
Kento Azegami
President of PSU College Democrats
“We’re having a hard enough time as it is.”
Kit Seulean
Student Vote Coalition and OSPIRG
”Faculty and students are feeling the burden. There’s got to be another way to pay for this.”
Mo Blue
ASPSU Equal Rights advocate
”It’s a necessary evil. If you still want to keep up the quality of the college experience you have to have fees.”
Andy Truong
Graduate student and Viking Bowl and Billiards employee