Tuition increases loom at University of Oregon as out-of-state enrollment misses target

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Tuition increases loom at University of Oregon as out-of-state enrollment misses target

Tuition rates at the University of Oregon could start rising faster than expected after projected budget shortfalls were announced this week during a meeting of the university’s board of trustees.

Jamie Moffitt, senior vice president for finance & administration and UO’s chief financial officer, presented financial projections for fiscal years 2024 to 2029. Moffit said current projections, based on orientation numbers and housing, see lower than expected out-of-state student enrollment for the 2024-25 school year.

She said UO’s targeted nonresident enrollment was 2,984 students, but enrollment believe the actual number of nonresident students this fall will be 2,536 — 448 under the target. Although this is a slight increase in out-of-state students compared to 2023-24, the university had counted on those additional tuition dollars. Projections in the coming years continue to see an upward trend in out-of-state enrollment, but not at the rate UO is targeting.

In-state student enrollment is increasing at a higher rate than expected — this year expecting 2,593 new students, compared to 2,181 targeted. Because in-state tuition is lower, a boost in enrollment would add some revenue, but it would not completely offset the decrease in out-of-state students.

In-state tuition and fees cost $16,137, while out-of-state cost $44,598.

“The financial impact of the smaller-than-targeted non-resident enrollment will not be felt fully for a few years,” stated the trustee’s agenda. “This is due to the fact that the small COVID-Class from fall of 2020 completed its fourth year in June 2024 with many of those students graduating. This class is being replaced with the larger, though below target, Fall 2024 class, which creates a one-time boost to tuition revenue.”

Moffit presented three scenarios with different rates of tuition increases starting in 2025-26, which estimate how much the university could be under or over its funding needs:

Case A: 3% tuition increase for both in-state and out-of-state students for each incoming cohort

Case B: 3% tuition increase for out-of-state and 4.5% increase for in-state for each incoming cohort

Case C: 3.5% tuition increase for out-of-state and 4.5% increase for in-state for each incoming cohort

Moffit projected Case A would lead to UO being underbudget based on the net run rate by 2027 with the university being increasingly underbudget each year following. Both Case B and Case C would also be underbudget by 2027, however Case B projects would be less underbudget in following years. Case C would be overbudget by 2029.

The incoming class of undergraduate freshman for the 2024-25 school year will be paying 3% more compared to the previous incoming class.

UO presents strategic plan

Earlier in the trustees meeting, UO President Karl Scholz and other administrators introduced and broke down the university’s new strategic plan called “Oregon Rising.”

The plan has four main focuses:

“Creating a flourishing campus”

“Pathways to timely graduation”

“Enhanced career support”

“Innovation for societal impact”

Scholz said UO took in community and stakeholder input when developing the plan.

“Our strategic plan defines our goals, strategies and measures of success,” Scholz said. “It reflects both our aspirations and the principles we will employ to achieve them.”

On the topic of timely graduation, the presenters spoke to pushing students to take a full 15-credit-hour load, which studies have shown result in quicker graduation. They also recommended more mandatory advising meetings and potentially making a policy that requires students to choose a major by the end of their second year. The presenters also highlighted a “finish in four” strategy.

“It’s really focused on the institutional side of a student’s success,” said Grant Schoonover, interim vice provost for undergraduate education & student success. “If over 90% of students and their families come to UO thinking they’re going to graduate in four years, if you look at our data, something’s not working. Some of that has to do with just how we’re structured and where we’re meeting students at. A four-year commitment means that our degree pathways per particular major have to be possible to graduate in four years. You have to reduce complexity. You have to offer the right classes at the right time to make a difference for students so that they can graduate on time.”

For enhanced career preparation, the presenters highlighted connecting with learning outside of the classroom, collaboration with workforce partners and utilizing the UO alumni network.

The strategic plan also intends to connect with the wider community on environmental resilience and climate change issues, behavioral and mental health, sports, and scientific impact through UO’s programs.

Capital projects: Romania lot lease and Kalapuya Ilihi repairsdata:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==

The University of Oregon Board of Trustees during a meeting on March 12 at the Ford Alumni Center.

During Monday’s meeting, the trustees were presented with two capital projects to consider for funding approval: the leasing of the Romania lot and repairs for Kalapuya Ilihi Hall.

Michael Harwood, associate vice president and university architect and Darin Dehle, director of design and construction gave the presentation.

The Romania lot is 4 acres of land south of Franklin Blvd, between Orchard and Walnut streets. The trustees approved a motion for UO to go ahead with negotiating and executing a ground lease agreement for the land. The initial 55-year lease term would start upon “substantial completion” of construction, with two 10-year renewals. In exchange for a non-refundable ******** of $50,000, rent is forgiven for the first thirty months while the developer secures permits and finishes any remaining inspection of the property.

The current plan for the lot is to build two residential buildings, a hotel with ground floor retail and parking.

Harwood said the housing will not be student housing, but “more affordable workforce housing.” However, he said while the housing will be “affordable” it will not be subsidized.

Harwood said there were still many details to be finalized, but an estimated 150 to 200 apartments would be available between the two residential buildings.

Base monthly rent of $49,114 totaling $589,368 annually would be charged the month after the Stabilization *******. This annual amount is five and a half (5.5%) percent of appraised land value of $10,715,760.

Construction is anticipated to last up to four years after the lease begins. UO expects to begin construction in 2026 and may last up to three years.

The Kalapuya Ilihi Hall is

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, following numerous significant structural deficiencies discovered since the residence hall was completed in 2017. The trustees approved $16.4 million for the repair project.

The repairs are currently in progress. UO estimates it will be ready for students to move in by fall 2025.

Miranda Cyr reports on education for The Register-Guard. You can contact her at *****@*****.tld or find her on

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This article originally appeared on Register-Guard:

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