Proposed measure puts a hold on OSU construction
The effects of proposed Measure 48 are felt across campus
Kellen Hade
Issue date: 9/25/06 Section: News
Several construction projects around campus have been postponed pending the outcome of this November's general election as a ballot initiative threatens to cut funding to higher education and cap state spending.
These projects include the second phase of the Reser Stadium expansion and the planned renovation of the large animal hospital, which was scheduled to begin on or around Sept. 25. Both projects were conditionally approved by the Legislature Sept. 21 pending the outcome of the election.
Proposed Measure 48, which will be voted on Nov. 7, amends the Oregon State Constitution by limiting the increase in state spending - including that of public universities - to the biennial increase in population plus inflation. Dubbed "TaBOR," the Taxpayers' Bill of Rights, proponents argue the measure will decrease the size of state government and reduce budget shortfalls that have plagued Salem in recent years.
The campaign for TaBOR's adoption is spearheaded by Howard Rich, a New York developer and president of the Americans for Limited Government political action committee. Neither Rich or his office were available for comment.
In Corvallis, a conflict arises because a significant portion of funding for capital improvement projects comes from bonds issued by the state - bonds that are scheduled to be repaid by OSU over time, usually between 25-30 years.
Normally the payments on this debt are figured into the annual operating costs of the university. However, if the spending cap passes there will not be enough room in the budget to make payments and remain under the limit, forcing OSU administrators to make difficult choices.
"Under [Measure 48], when you choose to spend money on one thing that means you are also choosing not to spend money on something else, even if you have the money available," said Jock Mills, the university's director of government relations. "So if we choose to invest state funds to pay off the debt on a building, the spending limit forces us to choose to educate fewer students."
These projects include the second phase of the Reser Stadium expansion and the planned renovation of the large animal hospital, which was scheduled to begin on or around Sept. 25. Both projects were conditionally approved by the Legislature Sept. 21 pending the outcome of the election.
Proposed Measure 48, which will be voted on Nov. 7, amends the Oregon State Constitution by limiting the increase in state spending - including that of public universities - to the biennial increase in population plus inflation. Dubbed "TaBOR," the Taxpayers' Bill of Rights, proponents argue the measure will decrease the size of state government and reduce budget shortfalls that have plagued Salem in recent years.
The campaign for TaBOR's adoption is spearheaded by Howard Rich, a New York developer and president of the Americans for Limited Government political action committee. Neither Rich or his office were available for comment.
In Corvallis, a conflict arises because a significant portion of funding for capital improvement projects comes from bonds issued by the state - bonds that are scheduled to be repaid by OSU over time, usually between 25-30 years.
Normally the payments on this debt are figured into the annual operating costs of the university. However, if the spending cap passes there will not be enough room in the budget to make payments and remain under the limit, forcing OSU administrators to make difficult choices.
"Under [Measure 48], when you choose to spend money on one thing that means you are also choosing not to spend money on something else, even if you have the money available," said Jock Mills, the university's director of government relations. "So if we choose to invest state funds to pay off the debt on a building, the spending limit forces us to choose to educate fewer students."
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