Text

Oregon State University Triga Reactor (Ostr), Response to RAI Regarding Amendment Request for Increase in Possession Limits for Reactor Conversion, Oregon State University Triga Reactor Dated January 11, 2008
	ML080720676
Person / Time
Site:	Oregon State University
Issue date:	02/29/2008
From:	Reese S; Oregon State University
To:	Alexander Adams; NRC/NRR/ADRO/DPR/RTRBA
References
	Download: ML080720676 (71)
	v • d • e

Radiation Center Oregon State University, 100 Radiation Center, Corvallis, Oregon 97331-5903 T 541-737-2341 I F 541-737-0480 I http://ne.oregonstate.edu/facilities/radiation_center Oregon State UNIVERSITY February 29, 2008 Mr. Alexander Adams U. S. Nuclear Regulatory Commission Research and Test Reactors Branch A Office of Nuclear Reactor Regulation Mail Stop 012-G13 One White Flint North 11545 Rockville Pike Rockville, MD 20852-2738

Reference:

Oregon State University TRIGA Reactor (OSTR)

Docket No. 50-243, License No. R- 106 Request for Additional Information (RAI) Regarding Amendment Request for Increase in Possession Limits for Reactor Conversion, Oregon State University TRIGA Reactor (TAC NO. MD7360) dated January 11, 2008

Subject:

Oregon State University Response to RAI Regarding Amendment Request for Increase in Possession Limits for Reactor Conversion, Oregon State University TRIGA Reactor dated January 11, 2008 Mr. Adams:

In a letter dated February 4, 2008, you requested that Oregon State University (OSU) provide additional information related to our license renewal submitted on October 5, 2004, as supplemented. Answers to the RAI can be found in the attached enclosure.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on: / '0.

Sincere-.

Weve ees~e Director Enclosure cc: Document Control, NRC Rich Holdren, OSU Craig Bassett, NRC Todd Palmer, OSU John Cassady, OSU Todd Keller, OSU (w/o Enclosure)

Oregon State University Responses to RAI Letter of February 4, 2008 REQUEST FOR ADDITIONAL INFORMATION OREGON STATE UNIVERSITY TRIGA REACTOR DOCKET NO. 50-243

1. Under 10 CFR 50.33(d), certain information is required by an applicant, as applicable. The application states that Oregon State University is a state institution, but does not provide other information required by the regulation. To complete the requirements in 10 CFR 50.33(d), please state the organizational form of the Oregon State University and provide the information that is applicable to Oregon State University. If none of the provisions of 10 CFR 50.33(d) are applicable, please so state.

None of the provisions of 10 CFR 50.33(d) is applicable. Oregon State University is an entity of the State of Oregon and does not fall into the categories listed in the regulation.

2. The staff's analysis to determine whether the applicant is financially qualified to operate the reactor facility will include review of the applicant's latest financial statements. Since this information is not included in the application, please provide a copy of the latest financial statements of the Oregon State University.

Attached is a copy of the Oregon State University Educational and General Fund Budget for Fiscal Year 2007.

3. The application, dated 2004, states that the 1990 cost estimate to decommission the reactor has been updated annually by using the methodology described in NUREG-1307, with the current estimated cost being between $7.9 and $14.3 million (the applicant's Decommissioning Funding Statement of Intent of July 31, 2007, estimated current costs at $12.2 million). In accordance with 10 CFR 50.75(d), please update the application to include the following:

(1) a statement of the decommissioning method to be used (e.g.,

DECON) and, Oregon State University will likely use the DECON decommissioning method.

(2) the means of adjusting the future cost estimate and associated funding level that will be used over the life of the facility. Please

provide a numerical example of the application of your chosen methodology.

As stated before, we have utilized the methodology described in NUREG-1307. Attached is a copy of the decommissioning cost estimate for 2007. The value in this estimate is probably high as we will likely perform some of the decommissioning work ourselves.

4. The application includes a statement of intent as the method to provide decommissioning funding assurance, as provided for by 10 CFR 50.75(e)(1)(iv). Where the applicant intends to use a statement of intent as the method to provide decommissioning funding assurance, the staff must find that the applicant "...is a Federal, State, or local government licensee..." under 50.75(e)(1)(iv). To make this finding, the applicant must state that it is a State government organization and that the decommissioning funding obligations of the applicant are backed by the State government, and also provide corroborating documentation. Further, the applicant must provide documentation verifying that the signator of the statement of intent is authorized to execute such a document that binds the applicant financially. This documentation may be a governing body resolution, management directives, or other form that provides an equivalent level of assurance. Because the application does not include all of the above information, please submit the following:

(a) Provide documentation that corroborates the statement in the application that Oregon State University is a State institution and a State of Oregon government licensee under 10 CFR 50.75(e)(1)(iv).

The documentation to prove OSU is a state institution is as follows.

The Oregon State Board of Higher Education (OSBHE) conducts and controls the Department of Higher Education [ORS 351.010]. OSBHE has jurisdiction over Oregon University System, which includes OSU

[ORS 352.001(2)]. The OSBHE is an agency of the state [State ex rel Eckles v. Wooley, 302 Or 37, 45 (1986), citing State ex rel Kleinsorge v. Reid, 221 Or 558, 570 (1960)]. Since OSBHE is a state agency and it has jurisdiction over OSU, OSU is a state agency.

(b) State whether the decommissioning funding obligations for the Oregon State University TRIGA Reactor are backed by the State of Oregon government. Provide documentation that corroborates this statement. For example, provide a copy of or complete citation to a state statute that expressly provides that the obligations, or at least the decommissioning funding obligations, of the Oregon State University are obligations backed or supported by the full faith and credit of the State of Oregon, or

provide an opinion of the General Counsel of the Oregon State University with citations to statutes, regulations, and/or caselaw that the obligations, or at least the decommissioning funding obligations, of the Oregon State University are obligations backed or supported by the full faith and credit of the State of Oregon.

The documentation to prove that OSU's financial obligations are backed by the full faith and credit of the state of Oregon is as follows.

The Legislature has to raise sufficient revenue to pay for the expenses of the State each fiscal year and to pay any interest on debt incurred by the State [Oregon Constitution, Article IX, Section 2]. Every agency receives a state appropriation from the Legislature [Oregon Constitution, Article IX, Section 4]. That appropriation is allotted to each agency by the Department of Administrative Services [ORS 291.234]. Most of the legislative appropriations come from the General Fund [ORS 293.105]. If there is insufficient money available in the General Fund, the Treasurer borrows money to pay expenses.

[Oregon Constitution, Article IX, Section 6; ORS 293.165]. The Treasurer can issue bonds to finance current expenses of the state, if the General Fund is insufficient. The bonds are backed by the tax revenues and full faith and credit of the State of Oregon [ORS 293.173(3)(b)].

(c) Provide documentation verifying that the signator of the statement of intent is authorized to execute such a document that binds the applicant financially. For example, provide a copy of a university governing board or equivalent resolution that shows that the signator of the statement of intent has been authorized by the Oregon State University to bind the Oregon State University financially, at least with respect to funding the decommissioning of the Oregon State University TRIGA reactor, or provide a copy of an official Oregon State University delegation of authority showing the signator of the statement of intent is authorized to bind the Oregon State University financially, at least with respect to funding the decommissioning of the Oregon State University TRIGA reactor.

Attached is a memo dated August 20, 2007, from Mark McCambridge, Vice President for Finance and Administration, to George Pernsteiner, Chancellor of the Oregon University System, identifying the individuals who have the authority to sign on behalf of OSU. John Cassady, Vice President for Research, is the fifth person on the list and one of the individuals whom signed the statement of intent. Because this memo gives Dr. Cassidy the authority to enter into contracts on behalf of the University without dollar limitations, Dr. Cassady has the authority to execute the statement of intent and bind the University financially.

Oregon State UNIVERSITY <o Education and General Fund Budget Fiscal Year 2007 July 1, 2006 - June 30, 2007 Office of Budget and Fiscal Planning

Oregon State University Fiscal Year 2007 Education and General Fund Budget TABLE OF CONTENTS Overview ..............................................................................

BUDGET

SUMMARY

Multi-Year Revenue Detail ............................................................ 1 FY01 Revenue Summary with Comparison to FY06 ...................................... 2 FY07 Budget Allocation Summary Comparison to FY06 ................................. 3 Distribution of Centrally Administered Funds.......................................... 4 2006-07 Initial Budget.................................................................5 FY2007 Base Budget ................................................................... 7 OSU Targeted Programs............................................................... 8 SWPS and Cascades Campus Legislative Authorized Budget............................. 9 Budgeted Operations by Unit......................................................... 10 OUS RESOURCE ALLOCATION MODEL (RAM)

Principles of RAM Funding 2005-07....................................................11 Fundable FTE Student Enrollments....................................................12 Comparison of OUS RAM Distributions ................................................ 13 RAM Cell. Values ..................................................................... 14 Oregon University System Cell Matrix Assignment ..................................... 15 Comparison of 05-06 Actual and 06-07 State Appropriations .......................... 16 TRENDS AND ANALYSES Growth in Revenues and Expenditures................................................ 17 FY06 and FY07 E Et G Revenue Sources................................................18 Contribution Ratios for State Appropriations and Tuition E&Other Revenue............ 19 Education and General State Appropriations.......................................... 20 Net Tuition Revenue..................................................................20 Resource Fee Revenue................................................................21 Education and General. Indirect Cost Recovery........................................ 21 Revenues per Student FTE ........................................................... 22 State Appropriation per Student FTE................................................. 23 Net Tuition per Student FTE.......................................................... 23 Resource Fees per Student FTE....................................................... 23 Total Student FTE Enrollments ....................................................... 24 Budgeted Student Head Count /FTE .................................................. 24 Operating Fund Balance.............................................................. 25 Fund Balance as a Percentage of Revenue............................................ 25 Selected Gift Fund Expenditures ..................................................... 26

Oregon State University Fiscal Year 2006 Education and General Fund Budget TABLE OF CONTENTS TRENDS AND ANALYSES (continued)

Gift Expenditures per Student FTE - Instruction....................................... 27 Gift Expenditures per Student FTE - Scholarships..................................... 27 Growth in Sponsored Program Revenues .............................................. 28 Effective Indirect Cost Recovery Rate on Sponsored Research ......................... 28 Research Awards Received ........................................................... 28 TUITION AND FEE SCHEDULES Comparison of Undergraduate Tuition, Room and Board Rates......................... 29 Full Time Tuition Rates for Top Land Grant Institutions - 12 credit hours .............. 30 Top Land Grant Institutions.......................................................... 31 Undergraduate Tuition and Required Fees ............................................ 32 Graduate Tuition and Required Fees.................................................. 33 Pharmacy PharmD) Tuition and Required Fees......................................... 34 Veterinary Medicine Tuition and Required Fees ....................................... 35 Programmatic Resource Fees......................................................... 36 Cascades Campus Undergraduate Tuition and Required Fees...........................37 Cascades Campus Graduate Tuition and Required Fees ............................... 38 Capital Budget Authorized Capital Projects.......................................................... 39 Capital Projects List ................................................................. 40 SPECIAL TOPICS Budget Re-Basing Process and Outcomes.............................................. 41 Enrollment Management Initiative ................................................... 49 Ecampus Revenue Allocation Model (ERAM)........................................... 51 Ecampus Estimated Distribution of Revenues .......................................... 55

Office of Budget and Fiscal Planning Oregon State University, 524 Kerr Administration Building, Corvallis, Oregon 97331-1234 T 541-737-4121 I F 541-737-0712 Ihttp://oregonstate.edu/dept/budgets/budghand Oregon State UNIVERSITY September 2006 President Ed Ray and Members of the OSU Community:

On behalf of Provost Sabah Randhawa and Vice President Mark McCambridge, I am pleased to present the Fiscal Year 2007 (FY 2007) Education and General Fund (E&G)

Budget for Oregon State University.

This budget document contains several sections designed to provide useful reference data for FY 2007 and future years. These are:

Section 1: Budget Summary Section 2: OUS Resource Allocation Model (RAM)

Section 3: Trends and Analyses Section 4: Tuition and Fee Schedules Section 5: Capital Budget Section 6: Special Topics Financial schedules presented in this booklet reflect our continuing efforts to clearly and accurately present university budget plans. The first five sections follow the same format used to describe the FY 2006 budget and to compare planned activity to actual experience. The "Special Topics" section addresses areas of specific interest expressed by the University Budget Committee.

Background

After a two-year process of examining its E&G budget allocation process, the University is introducing a revised, distributed budget model. The budget review process analyzed sources and use of funds for each academic unit, linking revenues and expenses explicitly to generating units. The budget approach has two key elements: (1) budget rebasing that establishes new base budgets effective fall 2006 and (2) sharing of future marginal revenue generated from tuition, state support, and indirect cost recoveries beyond the 2006-07 academic year.

In addition to the "Budget Rebasing Process", the University is undergoing a concurrent budget adjustment process to reduce expenses by approximately $13 million, or 5% of total E&G spending, because state funding and tuition revenues have not kept pace with increasing costs for the 2005-2007 biennium.

Outlook OSU received a small increase in state revenue for 2005-2007 due to the severe revenue constraints faced by the Governor and Legislature in building the budget. Despite this modest gain, funding for the operating budget will not keep pace with increasing costs over the 2005-2007 biennium. As a result the university must reduce its projected expenditures by approximately $13 million for the FY 2007 year in the E&G budget.

State funding for the Education and General Program will increase by an estimated $12.7 million in 2005-2007 over the prior biennium, from $160 million to $172.7 million. This amount will not be sufficient to cover significantly higher contributions to the Public Employees Retirement System (PERS) and Public Employees Benefit Board (PEBB), and largely unfunded faculty and staff raises scheduled during the biennium. PEBB and PERS increases are mandated costs beyond our control, while salary increases are necessary to retain our faculty and to address the impacts of a two-year salary freeze. In addition, OSU has experienced energy cost increases that are expected to exceed $3 million by the end of the biennium.

The E&G fund balance, which was $28.4 million at the beginning of FY 2006, was drawn down by

$10.1 million during last fiscal year to allow time for planning to minimize the impact of budget reductions. But because fund balances cannot be used to cover recurring expenses, permanent reductions totaling $13 million need to be made in the second year of the biennium.

The table below provides a summary of the past two years actual revenues, expenses, and fund balances for the Education and General Fund, showing the decrease in fund balances in FY 2005 and FY 2006 and the budget plan to bring revenues and expenses into balance in FY 2007.

ED~UCATION &GENERAL Actual Actual Budget FY%

BUDGET

SUMMARY

2005 FY 2006 % inc. FY 2007 inc.

Total Revenues 231,763 236,523 2.1% 243,156 2.8%

Total Expenses 23~5,228 246,67 4.9% 243,156 -1.4%

Net Change (3,465) (10,144) 0 Beginning Fund Balance 31,899 28,434 18,290 Ending Fund Balance $28,434 $18,290 $18,290 Last December units were asked to prepare reduction plans as part of a university-wide budget reduction process. In making the final decisions, each unit was held accountable for its projected shortfall. At the minimum it was expected that each unit will reduce its expenses by approximately 5%to account for increased costs.

Making the required reallocations in the operating budget has been challenging. The Strategic Plan has provided guidance for setting budget priorities, and the entire OSU community has worked together so that budget decisions are made thoughtfully to preserve the quality and vitality of the university.

ii

Revenue budget The FY 2007 E&G budget of $243.2 million reflects a 2.8% increase over the FY 2006 actual revenues. Compared to FY 2006, total E&G revenues are projected to increase by $6.7 million during FY 2007.

State appropriations increase by 3.4% or $2.9 million over FY 2006 actual revenues. The increase over the prior year is from funding allocated by the Legislative Emergency Board to support a portion of salary and benefits cost increases.

" While total state appropriations increase by $2.9 million compared to FY 2006, the increase does not restore state funding to 2001 levels. Due to lack of revenue, state funding for instruction was reduced in the previous two biennial budgets. Funding levels in the OUS Resource Allocation Model (RAM) are based on FY 2003 student enrollment, and RAM funding per student is allocated at an effective rate of 58%.

" Gross tuition revenues are projected to increase by 4.8%, or $5.3 million, due primarily to resident undergraduate rate increases capped at 3%, graduate tuition increases of 9%, and small projected enrollment increases. Tuition revenues for Summer Session are projected to be up 10%, or $421,000 and Extended Campus revenues are expected to increase by 5.8%, $479,000 over FY 2006 actual revenues.

Resource fees are budgeted at $12 million, a decrease of $168,000 from FY 2006 due to a $266,000 shift of Pharmacy resource fees to tuition and an increase in resource fees for Honors College, Health and Human Sciences, and Weatherford Hall. The Legislative cap of 9.1% of gross tuition is still in place.

Fee remissions are budgeted at 10% of gross tuition at $11.7 million for FY 2007, up $512,000 over FY 2006. Net tuition is projected to be $104.6 million, an increase of $4.8 million or 4.8% above the prior year actual.

Indirect cost recovery (ICR) is projected at $25.4 million, $335,000 higher than actual FY 2006 revenues. The university has submitted a new rate proposal to the Federal government for FY 2007. FY 2005 is the "base year" for negotiating OSU's indirect cost rate, and a new rate should be negotiated this fall. The OUS administrative charges to OSU have been reduced from 5.5% to 4% due to reduced service levels received.

" Interest income, departmental income and all other revenues are projected to decrease by $686,000 to $8.9 million below FY 2006 performance due to a shift in Pharmacy revenues to another fund.

Tuition income remains thelargest single revenue source for OSU's Education and General Fund budget. The portion of E&G revenues contributed by tuition and fees remains approximately the same in FY 2007 as FY 2006. The percentage of state support has dropped dramatically since FY 2000, from 50.3% to 36.1% for FY2007.

iii

Exoense budaet allocations Expenses are budgeted to decrease by 1.4%in FY 2007 compared to FY 2006 actuals to balance with anticipated revenues of $243.2 million. The Budget Allocation Model (BAM), which has been used for the past four years to allocate budgets based on productivity measures, was "frozen" for FY 2007. Distributable revenues for each unit were frozen at prior year levels with two major exceptions:

1) A total of $2.5 million in additional budget was shifted to four academic units through the rebasing process: the Colleges of Liberal Arts, Science, Business, and Health and Human Sciences. These funds were generated from additional administrative charges to Auxiliary operations, Statewide Public Service Programs, and a reduction in E&G spending for Athletics.

2) A number of unit budgets were adjusted so that all units would be required to make minimum expense reductions of approximately 5%for FY 2007.

In addition to the distributable revenues or base budgets, academic and administrative units are impacted by other factors such as departmental revenues, targeted legislative appropriations, organizational changes and strategic investments. Noteworthy budget changes for FY 2007 compared to FY 2006 include:

An increase in budget allocations to direct instruction and research delivery units of 4.5%; a decrease to service, support and management unit budgets of .4%;

and an increase in centrally administered funds of 18.3%;

" Continuation of a $1.8 million annual commitment to support strategic plan initiatives at OSU;

An increase of $894,000 in the Facilities budget to cover increased utility costs;

Budgeting Summer Session revenues at the college unit level in the initial budget rather than under Summer Session.

Moving $2.2 million in funding from the Institutional Management account to OSU Targeted Programs and $1.7 Million in funding from the Institutional Management account to the Base Budget.

In its fourth year of a revised funding model, Ecampus is anticipated to provide

$5.5 million in funding for academic units and $0.4 million for support costs to the Library, Information Services, Student Affairs and Graduate School.

For the Future The Oregon University System emerged from the 2005 Legislative session with improved legislative relations and a modest increase in funding. For 2007-2009 the Oregon University System Board has made a bold call for investment in Oregon's future in its base budget request to the Governor that includes funding for the essential budget level, enhancing faculty salaries, reducing student-faculty ratios, additional support for regional campuses including OSU Cascades, enrollment growth, and facilities maintenance. In addition the budget proposal includes policy package requests that would provide funding for OSU for ETIC, Statewide Public Service Programs, the Veterinary Diagnostic Laboratory, and the proposed Institute for Ecosystems and Climate Change.

iv

The OUS Board has also proposed several legislative changes that would give campuses more flexibility in managing revenues and expenses, such as retention of investment earnings on cash balances, ability to manage employee health care and retirement costs more effectively, relief from some state assessments and Department of Justice oversight.

Although a larger increase in state funding is likely for the next biennium, Oregon will continue to lag the U.S. average funding level per student by a wide margin. And unless the state obtains new sources of revenue, it is not probable that the state can sustain large funding increases over the next several years for the university system. Legislative constraints on tuition and fees are also a possibility.

The OSU Strategic Plan provides a clear focus for budgetary priorities in FY 2007 and subsequent years. Despite negligible real growth in allocable revenues, the FY 2007 budget continues to reflect significant investments to support strategic objectives in research, future revenue growth from enrollment management activities, programs and core academic programs.

Among OSU's strategies for future expansion, including enhanced program quality, access and affordability for Oregon students, are enrollment strategies designed to supplement state funding support with additional nonresident tuition revenue. Other OUS institutions have successfully pursued this strategy and in FY 2005 OSU initiated a multi-year initiative to increase nonresident and international enrollments.

Together with the OSU Foundation, OSU is pursuing opportunities to significantly expand fundraising activity to provide immediate and long term support for academic programs, scholarships and capital projects. To date these efforts have proven very successful and are a promising source of future support for OSU's strategic plan.

In summary, though OSU enters FY 2007 and subsequent years facing many financial challenges, OSU remains fiscally sound and is positioned to achieve its future program goals through diversified future revenue sources.

Acknowledgements This booklet itself reflects the dedicated work of numerous individuals at OSU. While not all such contributions can be acknowledged here, I particularly wish to thank several dedicated faculty and staff whose efforts were indispensable to development of this budget plan: Susan Wang in the Office of Institutional Research; University Budget Committee members Sherman Bloomer - COS, Bill Boggess, Tammy Bray, Jim Carrington, Stella Coakley- CAS, Brad Dennis, Becky Johnson - AcadAff, Tom Kirch Walter Loveland, Mark McCambridge, Michael Oriard, Michael Quinn, Sabah Randhawa And my colleagues Terri Cook, Jeannie Davis, Karen Meador, and Eric Yahnke in the Office of Budget and Fiscal Planning.

Respectfully submitted, Nancy Heiligman Associate Vice President for Finance and Administration Oregon State University V

Oregon State University FY06 FY07 Multi-Year Revenue Detail Distributed Departmental Budget Budget Actual %VAR Resources Resources Total Change Undergraduate $40,860,012 $40,860,012 $40,860,012 $40,860,012 Graduate 22,081,008 22,081,008 22,081,008 22,081,008 Cell Funding 62,941,020 62,941,020 62,941,020 62,941,020 Targeted Programs:

Western Undergraduate Exchange 78,041 78,041 S- - -100.0%

Facilities Services: SWPS Buildings/Maintenance 1,968,562 1,968,562 1,968,562 - 1,968,562 Sponsored Research Support 2,229,497 2,229,497 2,229,497 2,229,497 Research Faculty Salary Support 623,135 623,135 623,135 623,135 Campus Public Service Programs 992,487 992,487 992,487 992,487 Systemwide Information Technology Services 2,473,093 2,473,093 2,473,093 2,473,093 Systemwide Expenses/Programs:

Endowment Match 761,753 761,753 (1,140,610) 1,902,363 761,753 Orbis 38,259 38,259 38,259 38,259 Oregon Joint Schools of Professional Business 90,012 90,012 90,012 90,012 Department of Justice Legal Services 122,800 122,800 - 122,800 122,800 Faculty Diversity 69,700 69,700 69,700 - 69,700 Services to Students with Disabilities 65,528 65,528 65,528 65,528 Engineering - ETIC 4,697,977 4,697,977 - 4,697,977 4,697,977 Engineering Resident Graduates 1,150,846 1,150,846 1,150,846 - 1,150,846 Signature Research Centers 237,622 237,622 237,622 237,622 Natural Heritage Program 51,775 51,775 51,775 51,775 Natural Resource Funding 125,000 125,000 125,000 125,000 3,171,426 3,171,426 - 3,171,426 3,171,426 Targeted Programs 18,947,513 18,947,513 5,893,617 12,975,855 18,869,472 -0.4%

Salary Funding 2,510,253 5,020,506 5,020,506 -

Tuition Buydown 441,023 441,023 882,643 - 882,643 100.1%

racut.y i*eteLnUon andl Rf, ecruitment. IU,64/ IU,o47 - 120,647 - 120,647 0.0%

Subtotal - State Appropriation 82,450,203 84,960,456 3.0% 74,858,433 12,975,855 87,834,288 6.5%

Tuition:

OSU - Corvallis 102,786,003 98,483,726 -4.2% 102,865,692 - 102,865,692 0.1%

Extended Campus 7,901,241 8,320,456 5.3% 8,799,242 8,799,242 11.4%

Summer Term 4,388,000 4,196,535 -4.4% 4,617,690 4,617,690 5.2%

Subtotal - Tuition 115,075,244 111,000,717 -3.5% 102,865,692 13,416,932 116,282,624 1.0%

Tuition Waivers (11,479,512) (11,158,824) -2.8% (11,520,955) (150,000) (11,670,955) 1.7%

Student Fees:

Resource Fees 6,870,248 6,744,354 -1.8% 6,671,668 6,671,668 -2.9%

Technology Resource Fee 5,270,000 5,374,955 2.0% 5,280,000 5,280,000 0.2%

Resource Fees 12,140,248 12,119,309 -0.2% 11,951,668 11,951,668 -1.6%

Other Student Fees 4,232,375 4,919,931 16.2% 4,431,769 4,431,769 4.7%

Subtotal - Student Fees 16,372,623 17,039,240 4.1% 16,383,437 16,383,437 0.1%

Other Resources:

Indirect Cost Recovery / Returned Overhead 23,625,000 25,104,582 6.3% 12,213,000 13,227,000 25,440,000 7.7%

Sales t Services / misc income 5,882,113 8,308,997 41.3% 1,008,326 6,753,328 7,761,654 32.0%

Earned Interest on Accounts Receivable 1,125,000 1,264,893 12.4% 1,125,000 1,125,000 -

Subtotal - Other Resources 30,632,113 34,678,472 13.2% 14,346,326 19,980,328 34,326,654 12.1%

ITotal Revenue 233,050,671 236,520,061 1.5% 180,549,496 62,606,552 243,156,048 4.3%

1

Oregon State University FY07 Revenue Summary with Comparison to FY06 (thousands of dollars)

FY07 FY07 Over (Under) FY06 Initial Budget* $

RAM Cell Funding $ 0.0%

Targeted Programs:

Western Undergraduate Exchange (78) -100.0%

Facilities Services: SWPS Buildings/Maint 1,969 Sponsored Research Support 2,229 Research Faculty Salary Support 623 Campus Public Service Programs 992 Systemwide Information Technology Services 2,473 Tuition Mitigation Systemwide Expenses/Programs:

Endowment Match 762 Orbis 38 Oregon Joint Schools of Prof Business 90 Department of Justice Legal Services 123~

Faculty Diversity S70 Services to Students with Disabilities Oregon Engineering Education Invest Fund 4,698 Engineering Resident Graduates 1,151 Signature Research Centers 238 Natural Heritage Program 52 Natural Resource Funding 125 Vet Med 4 year Program 3,171 0.0%

SUBTOTAL TARGETED PROGRAMS 18,869 78) -0.4%

Salary Funding 5,021 5,021 Tuition Buydown 883~ 442 Faculty Retention and Recruitment 121 SUBTOTAL STATE APPROPRIATION 87,834 5,384 6.5%

Tuition:

OSU - Corvallis '102,866 80 0.1%

Extended Campus 8,~799 898 11.4%

Summer Term 4,618 230 5.2%

SUBTOTAL GROSS TUITION 116,283 1,207 1.0%

(less) Tuition Remissions (11,671) 192) 1.7%

SUBTOTAL NET TUITION 104,612~ 1,015 1.0%

Student Fees:

Resource Fees ' 6,672 198) -2.9%

Other Student Fees 4,432 199 4.7%

Technology Resource Fee 5,280 10 0.2%

SUBTOTAL RESOURCE FEES K'16,<384~ 11 0.1%

Other Revenues:

F&A Cost Recovery / Returned Overhead J 25,440 1,815 7.7%

Sales Et Services / Misc Income 7,761 1,880 32.0%

Earned Interest on Accounts Receivable p 1,125~ 0.0%

SUBTOTAL OTHER REVENUES 34,326, 3,695 12.1%

TOTAL EDUCATIONAL AND GENERAL REVENUES $S 243, 156k $ 10,105 4.3%

Excluding OSU-Cascades and Statewide Public Services 2

Oregon State University FY07 Budget Allocation Summary with Comparison to FY06 (thousands of dollars) 07 Initial Budget Base Targeted and Other Budget FY07 Budget Departmental Adjustments* , Initial Budget Pct Chg Centrally Administered Funds Pools and Reserves S 7,212 $ 7,212, 623.2%

Agencies Outside OSU E&G Budget 6,682 6,682 -0.6%

Distributions to Academic Units 5,445 5,445 -14.8%

Distributions to Administrative Units 2,129 2,129 -47.2%

Centrally Administered Funds Total 21,468 21,468. 18.3%

Direct Instruction and Research Delivery Agricultural Sciences 5,577 1,969 7,546 2.6%

Business 5,285 1,501 500 ,7,286 13.0%

Engineering 12,005 11,027 (( 140) 22;892 2.0%

Forestry 1,826 1,099 91) *2,834 2.5%

(

HHS 8,176 2,849 163) :10,861 5.2%

(

Education 1,594 777 96) 2,'275, 18.3%

Liberal Arts 16,761 2,977 800 20,53811: 11.4%

Oceanic & Atmos. Sci. 3,108 2,378 82 5,568. 1.0%

Pharmacy 4,459 1,276 5,735' -4.6%

Science 19,558 4,698 1,222 25,478 11.4%

Veterinary Medicine 6,318 8,460 14,778 16.3%

Summer Session 784 784 -82.1%

University Honors College 1 1,195 58) I 137, -2.4%

Extended Campus 1,425 8,320 235) 9,510 8.8%

Building Use and Research Equipment 3,180 3,180 6.0%

International Programs 1,069 1,969 3,038 8.5%

Library 8,892 1,058 9,950 0.0%

Research Programs (Centers/Institutes) 4,594 3,180 ~7,774 6.2%

Direct Instr and Research Delivery Total 100,648 58,697 1,820 161 165_ 4.5%

Service, Support, and Management:

Facilities Services 17,687 100 17,787 7.8%

Office of the President 1,976 748 2724' -54.5%

University Advancement 2,380 12 2.8%

Finance and Administration 9,202 679 1,208) 8,673': -9.4%

Graduate School 1,257 289 76) 1,'470 -3.8%

1,280 400 . 1,680, 31.2%

Research Provost 1,240 4,189 1,574) 3 856.' 179.4%

Academic Affairs 2,257 614 2 871 -3.2%

Student Affairs 7,032 2,768 20) 9,779 -0.8%

Information Services (w/o Library) 6,577 2,715 9,291 -0.5%

Service, Support, and Management Total 50,888 12,514 2,878) : 60,524 -0.4%

Distributable Budget and Targeted Programs 151,536 71,211 1,058) 221,689* 3.2%

Total Budget: $ 151,536 $ 92,679 (S 1,058) 243,156 4.3%

3

Oregon State University Distribution of Centrally Administered Funds FY06 Initial FY07 Initial FY07 Over (Under) FY06 Description Budget Budget $

Pools and Reserves Strategic Planning Reserve 1,800,000 $ 1,800,000 $ 0.0%

Pay Adjust funding anticipated from Legislature (3,000,000) 3,000,000 -100.0%

Contingency Fund 870,000 768,000 (102,000) -11.7%

Budget Reserve 1,265,804 1,265,804 Graduate Tuition Remission Reserve 761,023 951,328 190,305 25.0%

Graduate Costs Reserve 800,000 800,000 0.0%

Bad Debt Expense 600,000 0.0%

Returned Overhead Reserve (Dept Admin portion) 655,090 761,635 106,545 16.3%

Research Audit Disallowance Reserve (1% of Recovery) 250,000 265,000 15,000 6.0%

Carryover of F&A Recovery (1,355,064) 1,355,064 -100.0%

Carryover Subsidy (PEBB FY06) (962,758) 962,758 -100.0%

Post BAM Reconciling Items 578,934 - (578,934) -100.0%

Subtotal 997,225 7,211,767 6,214,542 623.2%

Transfers to units & agencies outside OSU E&G Budget Assessments, Debt Service, Leases 2,240,000 2,822,471 582,471 26.0%

Graduate Tuition Remission Reserve for Statewides 2,000,000 2,180,000 180,000 9.0%

Foundation Contract 1,800,000 1,800,000 - 0.0%

Support for Cascades Campus 90,615 (90,615) -100.0%

Transit System Funding - City of Corvallis 150,000 150,000 - 0.0%

Weatherford Project - operational costs 250,000 250,000) -100.0%

OSU Retirement Association (OSURA) 9,000 (9,000) -100.0%

Subtotal 6,539,615 6,952,471 412,856 6.3%

Distributions to Academic Units Agricultural Sciences 4,068 (4,068) -100.0%

Engineering 278,000 (278,000) -100.0%

Liberal Arts 170,000 60,000 (110,000) -64.7%

Science 75,000 75,000 0.0%

30,000 Education 30,000 International Programs 75,000 * (75,000) -100.0%

University Libraries 19,000 (19,000) -100.0%

Research Centers a Institutes 500,000 * (500,000) -100.0%

Instr Equipment a Technology Resource Fund (TRF) 5,270,000 5,280,000 10,000 0.2%

Subtotal 6,391,068 5,445,000 (946,068) -14.8%

Distributions to Administrative Units Facilities 1,546,302 894,250 (652,052) -42.2%

Executive Office 722,260 30,000 (692,260) -95.8%

University Advancement 185,000 (185,000) -100.0%

Provost 100,000 134,200 34,200 34.2%

Finance a Administration 512,500 (512,500) -100.0%

Research Administration 400,000 (400,000) -100.0%

Academic Affairs 12,000 100,000 88,000 733.3%

Student Affairs 739,700 700,000 (39,700) -5.4%

Subtotal 4,217,762 1,858,450 (2,359,312) -55.9%

Total Centrally Managed Funds S 18,145,670 $ 21,467,688 $ 3,322,018 18.3%

Moved to Base Budget or Targeted Funds 4

OREGON STATE UNIVERSITY 2006-07 INITIALBUDGET Centrally Administered Funds:

IIPools and Rese-es 2 ITransfers to Agenci Direct Instruction B Research Delivery:

Agricultural Sciences 5,576,603 101,577 136.117 245,000 336,528 1,150,000 7,545,825 7,545,825 Business 5,Z85,055 242,109 219,557 1,024,000 14,760 1,000 500,000 7,286,481 7,286,481 Engineering 12,004,876 5,012,611 224,662 3,547,000 1,242,792 1,000,000 (140,306) 22,891,635 22,891,635 Forestry 1,826,100 435,081 120,435 14,000 79,704 450,000 (91,000) 2,834 320 2,834,320 HHS 8,176,010 112,879 487,874 1,004,000 743,904 500,000 (363,266) 200,000 10,861,401 10,861,401 Education 1,593,977 349,400 165,000 247,968 15,000 (96,200) 2.275,145 30,000 0,305,145 Liberal Arts 16,761,190 332,709 1,023,679 684,050 915,120 20,700 800,000 20,537,048 60,000 20,597,448 Oceanic & Atmospheric Sciences 3,108,057 19,657 06,382 23,000 8,856 2,300,000 82,294 - 5,568,246 - 5,568,246 Pharmacy 4,459,792 860,500 8,087 40,600 224,352 140,000 - 5.735,331. - 5,735,331 Science 19,558,107 226,197 1,195,870 753,986 1,670,832 851,00 221,960 1,000,000 25,477,972 75.000 25,552,972 Veterinary Medicine 6,318,057 4,316,362 - 4,033,000 8,856 101,603 14,777,078 14,777,878 Summer Session - - 783,759 - - - 783,759 783,759 University Honors College 750 990,000 740 203,890 (58,246) 1.137,134. 1,137,134 Extended Campus 4,129,930 - 150,000 (235,408) 4,044.522 4,044,522 Extended Campus - Allocation to Depts 1,425,112 4,040,475 5,465,587 5,465.587 Building Use and Research Equipment - - 3,180,000 3,180.000 3,180,000 International Programs - OSU 1,068,748 75,000 1,726 154,500 1,299,974 1,299,974 International Programs - OUS - 1,738,256 1,738,256 1,738,256 University Libraries 8,892,429 148,986 143,651 191,500 573,500 9,950,066 9,950,066 Research (Centers / Institutes / Programs) 4,593,647 911,20Z 4,5a4 346,629 1,917,562 7,773,624 7,773,624 Direct Instruction E Research Delivery Total 180,648,530 13,784,870 8,314,056 4,582,872 14,320,411 5,493,672 12,200,365 (680,172) 2,500,000 161,164,604 165,000 161,329,604 vice, Support. and Management:

Facilities Services 17,687,385 10,000 17,787,385 1,164,802 18,952,187 Office of the President 1,975,638 746,960 1,300 - .2,724,098 30,000 2,754,098 University Advancement 2,380,254 9,000 3,000 " . 2,392,254 2,392,254 Finance and Administration 9,201,728 4,000 - - 675,000 I (87,568) (1,120,000) 8,673,160 8,673,160 Graduate School 1,257,030 80,000 47,884 7,945 153,000 ((76,359) 1,469,500 1,469,500 Research 1,279,602 400,000- . 1,679,602 1,679,602 Provost 550,257 (1,600)) 550,657 134,200 684,857 Provost - Pass-through 688,214 4,189,133 ; (

(72,410) (1,500,000) 3,304,937 3,304,937 Academic Affairs 2,257,396 600,000 14,100 2,871,496 100,000 2,971,496 Student Affairs 7,031,823 105,228 143,651 26,873 0,491,754 (19,963) 9,779,366 700,000 10,479,366 Information Services 6,576,557 2,473,093 143,651 - 98,000 9,291,301 9,291,301 Service. Support, and Management Total 50,887,884 8,607,414 335,186 34.818 3,536,354 - (257,900) (2,620,000) .60;523,756 2,129,oo2 62,652,758 Total Educational and General Budget S 151,536,414 5 34,422,009 $ 8,649,242 $ 4,617,690 $ Z3,136,765 S 8,625,000 $ 13,227,000 (938,072) 5 (120,001 $ a - $$243,156,040:

243,156,048

This page is Intentionally Blank 6

Oregon State University Base Budget Fiscal Year 2007 FY06 FY07 Productivity Inst Mngmt Grad Assist

& Model Limit Commitments Salary Allocation Adjustment Subvention Moved to Base Funding Other Adj Total Base INSTRUCTION & RESEARCH

$ 515766oaj Business 5,603,634 (322,329) 3,750 5,285,055 Engineering 11,678,922 209,000 116,954 12,004,876

~~~~~~1" i*; ;*6* j;<*h " ?

Forest'ry HHS 9,894,393 (1,780,662) 62,279 8,176,010 Education 1,324,674 91,240 154,800 23,263 1,593,977 Liberal AisI, 15"4 11U-,,I'~ - ~ 1,268,900 16,761,190 Oceanic & Atmos. Sci. 2,305,377 26,078 770,000 6,602 3,108,057 Pharmacy 2,930,269 640 338 875,393 13,792 4,459,792 L, Science ,, i *4;;:; ::

Veterinary Medicine 1,338,583 1,977,724 3,000,000 1,750 6,318,057 Summer Session Extended Campus 1,425,112 1,425,112 International Programs - OSU 969,142 4,606 95,00 1,068,748

8,892 4'-),

Research (Centers / Institutes / Program.r 4,328,485 262,792 2,370 4,593,647 Instruction & Research Total 92,509,312 750,569 6,549,093 209,000 535,556 95,000 100,648,530 SERVICE, SUPPORT & MNGMT Facilities Services I A,411.635 1,275,750 17687,385 Offic of1h Pf"'Idý;tf 197',6 1,A, University Advancement 2 246,742 60,000 7 3,512 2,380,254 Finance and Administration 185,000 9,201,728 Research 1,279,602 1,279,602 552.257 552,257 Frvsti throuI 65 2949 Academic Affairs 2,330,013 22,750 12,000 1,410 (108,777) 2,257,396 Student Affairs 6,814,623 215,700 1,500 7.031.823 Service, Support, & Mngmt Total $ 49,124,198 $ (18,160) $ 238,450 $ 1,532,750 $ 10,646 $ - $ 50,887,884 Toa ase Budget $ 141,633,510 S 732409 $6,787,543 $~1,74 1,750 $ 5~46,202 ~$ 95.~000 $ 151,536,414

Oregon State University OSU - Targeted Programs Fiscal Year 2007 Centrally Administered Funds Pools and Reserves Strategic Planning Reserve 1,800,000 Contingency Fund 768,000 Graduate Costs Reserve 800,000 Bad Debt Expense 600,000 Budget Reserve 1,265,804 Education 30,000 Liberal Arts 60,000 Science 75,000 Executive Office 30,000 Finance Et Administration 894,250 Provost 134,200 Academic Affairs 100,000 Student Affairs 700,000 Subtotal 7,257,254 Transfers to units Et agencies outside OSU EEtG Budget Assessments, Debt Service, Leases 2,822,471 Foundation Obligation 1,800,000 Transit System Funding - City of Corvallis 150,000 Subtotal 4,772,471 Endowment Legislatively osu Other Match Targeted Targeted Total Agricultural Sciences 101,577 101,577 Business 242,109 242,109 Engineering 77,012 4,935,599 5,012,611 Forestry 435,081 435,081 Health & Human Sciences 112,879 112,879 Liberal Arts 332,709 332,709 Oceanic & Atmospheric SciencE 19,657 19,657 Pharmacy 860,500 860,500 Science 226,197 226,197 Vet Med 4,163,913 152,449 4,316,362 Honors College 990,000 990,000 International Programs 75,000 75,000 Library 110,727 38,259 148,986 Research Centers atInstitutes 176,775 334,427 400,000 911,202 President 746,960 746,960 University Advancement 9,000 9,000 Finance a+/-Administration 4,000 4,000 Graduate School 80,000 80,000 Research Administration 400,000 400,000 Provost* 4,189,133 4,189,133 Academic Affairs 600,000 600,000 Student Affiars 65,528 39,700 105,228 Information Services 2,473,093 2,473,093 Subtotal 1,834,723 12,010,819 22,392,284 8,546,742 Total Targeted Programs $ 34,422,009

Includes Athletics budget which was reduced by S1.5 million in the rebasing section of the Budget Allocation Model.

8

Legislative Authorized Education and General Budget Statewide Public Services and Cascades Campus State General Fund Other Funds Total Current Biennium - 2005-2007 OSU - Cascades $ 6,712,992 $ 2,181,868 $ 8,894,860 Agricultural Experiment Station 51,860,395 16,399,999 68,260,394 OSU Extension Service 37,194,367 22,838,785 60,033,152 Forest Research Laboratory 5,258,370 9,760,398 15,018,768 Total Legislative Authorized Budget (LAB) $ 101,026,124 $ 51,181,050 $ 152,207,174 Prior Biennium - 2003-2005 OSU - Cascades $ 6,597,529 $ 2,080,374 $ 8,677,903 Agricultural Experiment Station 50,238,500 13,563,829 63,802,329 OSU Extension Service 35,123,305 27,177,395 62,300,700 Forest Research Laboratory 4,938,640 8,821,291 13,759,931 Total Legislative Authorized Budget (LAB) $ 96,897,974 $ 51,642,889 $ 148,540,863 9

Oregon State University Budgeted Operations by Unit Fiscal Year 2007 Expenditure Budget rLXVLULVV Jice UI University Advancement 2,392,254 425,000 2,817,254 Provost Et Executive VP 1,355,594 1,355,594 Academic Affairs 2,871,496 365,000 4,120 3,240,616 University Libraries 9,950,066 254,527 10,204,593 Information Services 9,291,301 44,687 11,320,879 151,349 20,808,216 Graduate School 1,469,500 1,469,500 Extended Campus 9,510,109 230,999 9,741,108 Summer Session 783,759 783,759 OSU Extension Service 104,717 17,481,745 114,115 324 17,700,901 VP Research EtResearch Centers 9,453,226 707,306 2,298,015 1,185,794 269,000 13,913,341 Student Affairs 9,779,366 194,470 44,020,900 53,994,736 International Programs 3,038,230 3,747,449 6,785,679 University Honors College 1,137,134 1,137,134 Cascades Campus 4,268,420 4,268,420 Agricultural Sciences 7,545,825 27,716,094 9,808,945 4,614,868 119,765 481,810 50,287,307 Veterinary Medicine 14,777,878 798,699 361,678 15,938,255 Forestry 2,834,320 46,955 1,967,816 5,684,900 282,420 993,000 20,000 11,829,411 Liberal Arts 20,537,448 88,698 20,626,146 Science 25,477,972 324,671 214,700 26,01 7,343 Oceanic and Atmospheric Science 5,568,246 772,237 1,101 6,341,584 Business 7,286,481 1,437,457 8,723,938 Engineering 22,786,918 237,042 23,023,960 Education 2,275,145 3,962,233 6,237,378 Health and Human Sciences 10,861,401 322,557 2,452,598 1,168,489 111,800 14,916,845 Pharmacy 5,735,331 160,219 1,422,000 7,317,550 Finance and Administration 8,673,160 6,853,417 733,295 16,259,872 Facilities 17,787,385 2,804,010 20,591,395 Athletics 2,500,000 24,050,000 26,550,000 Institutional Management 24,647,688 392,500 3,602,629 (4,680,954) 954,806 (295,786) 10,172,825 34,793,708 TOTAL $243,156,048 $4,660,920 $32,486,934 $31,699,689 $6,639,706 $16,210,050 $21,049,233 $84,497,061 $440,399,641

Oregon University System Principles of RAM Funding 2005-07 The allocation of the General Fund budget to the seven campuses and the Chancellor's Office has been made in accordance with Legislative directives, Board policies and agreed upon procedures as expressed in the following guidelines.

" The total number of Oregon resident students funded at each campus will be at 2002-03 actual enrollments.

" Funding for masters and doctoral students, via RAM cell values, will be capped at the lesser of 2000-01 or 2002-03 actual FTE enrollment.

A special allowance for some growth will be made for Education Masters students. For 2005-06, an additional 200 FTE above the aggregate graduate.

enrollment cap wilt continue to be funded under the RAM. The distribution of these FTE will be proportional to the 2002-03 Masters of Education FTE among the institutions.

" 2005-07 Cell funding for undergraduates will include additional funding of $13 million provided by the Legislature for undergraduate education restoration.

OSU's portion of this is $441K in the first year of the biennium.

" Additional students may be accepted and funded at individual campuses by tuition only, so tong as the campuses provide assurances that quality will be maintained.

Targeted program allocations will be based on 2004-05 levels, but wit[ be subject to adjustment depending on Legislative and/or Board actions for 2005-07.

11

Fundable FTE Student Enrollments With the decline in state revenues for 2005-2007, the RAM will not allocate funding to all student FTE that are "fundable" under the Model. The available dollars wilL fund only 2002-03 eligible FTE with cell values set at 58% of the peer median for resident undergraduate and 56% for fundable graduate.

FUNDABLE STUDENT FTE IN THE BUDGET MODEL

Oregon residents, as defined by the Board's residency policy. This includes students in the regular (fall, winter, spring) and extended terms (fundable continuing education and summer session).

Ph.D. students

All. Eastern Oregon University students

Students enrolled under the part-time fee policy (as per Academic Year Fee Book)

Students enrolled under specific reciprocity agreements o Oregon /Washington reciprocity-no new agreement has been made since the 1997-1999 biennium; however, students already in the program will continue to be funded

" Institutional reciprocity/ exchange agreements approved by the Chancellor's Office

Staff /qualifying family members/ domestic partners in accordance with new staff fee policy

Graduate teaching assistants

Cooperating supervising teachers

National Student Exchange students CALCULATION OF ANNUAL FTE FOR USE IN THE BUDGET MODEL

Credit hours of fundable students as reported at the end of each term (note: FTE calculations are based on techniques used by OUS Institutional Research Services as verified by campuses).

Course CIP codes (Classification of Instructional Programs) as defined by NCES (National Center for Education Statistics) o Annual FTE is determined as follows:

o Undergraduate 45 credit hours o Master's and professional 36 credit hours o Doctoral 27 credit hours

" Categorized by level. of student o Freshman / sophomore and non-admitted undergraduate status equates to lower division undergraduate o Junior / senior and post- baccalaureate non-graduate status equates to upper division undergraduate o Master's degree students and non-admitted graduates o Ph.D. students

" Separate student counts for Law, Veterinary Medicine, and Pharmacy 12

Comparison of OUS RAM Distributions 05-06 and 06-07 (Percentage of Total RAM)

Updated September 2006 05-06 RAM % 06-07 RAM % Difference Oregon State University 25.2% 24.8% -0.4%

Statewide Public Service 14.4% 14.4% 0.0%

OSU-Cascades 1.0% 1.0% 0.0%

Subtotal 40.6% 40.2% -0.4%

University of Oregon 19.1% 19.4% 0.3%

Portland State University 18.4% 18.5% 0.1%

Southern Oregon University 4.7% 4.5% -0.2%

Oregon Institute of Technology 4.7% 4.8% 0.1%

Eastern Oregon University 4.1% 4.0% -0.1%

Western Oregon University 4.9% 5.0% 0.1%

Oregon University System 3.5% 3.6% 0.1%

Total 100.0% 100.0% 0.0%

Oregon State University 2006-07 Cell Values 2006-2007 cell values for the RAM are the same as the 2005-06 that are discounted at 58% for resident undergraduate FTE to reflect available state funding.

CELL VALUE CALCULATION METHODOLOGY 2005-06 CELL VALUE (Sample below based on level I cell value for lower division)

Annual Cell Value Discount Fiscal Year Inflation Cell Value Discounted Rate (due to funding shortfalls) 1997-98 (Original) $ 2,900 1998-99 3.0% $ 2,987 1999-00* 1.5% $ 3,155 $ 2,789 87.92%

2000-01* 2.0% $ 3,340 $ 2,967 87.92%

2001-02* 2.5% $ 3,424 $ 2,509 73.29%

2002-03 2.5% $ 3,510 $ 2,572 73.29%

2003-04 1.5% $ 3,562 $ 2,565 72.00%

2004-05 1.5% $ 3,616 $ 2,603 72.00%

2005-06 1.8% $ 3,681 $ 2,150 58.41%

2006-07 $3,681 $2,150 58.41%

1999-2001 Tuition freeze factor added to undergraduate cell values: $123 in 2005-06 and 2006-07 CELL VALUES AT 100%

Lower Division Upper Division Master's Ph.D Undergraduate Undergraduate Graduate Graduate Level 1 $3,681 $4,739 $5,993 $11,281 Level 2 $4,621 $5,914 $8,108 $13,513 Level3 $6,619 $8,969 $11,633 $17,038 Pharmacy $10,026 $10,026 $15,276 $31,727 Law $12,808 $11,281 Vet Med $44,652 2005-06 and 2006-07 ESTABLISHED CELL VALUES (ENROLLMENT DRIVEN REVENUE CALCULATION FOR STATE FUNDS)

Lower Division Upper Division Undergraduate Undergraduate Master's Ph.D at 58% at 58% Graduate at 56% Graduate at 56%

Level 1 $2,150 $2,768 $3,346 $6,298 Level 2 $2,699 $3,454 $4,527 $7,544 Level 3 $3,866 $5,239 $6,495 $9,512 Pharmacy $5,598 $5,598 $8,528 $17,713 Law $7,151 $6,298 Vet Med $24,929 14

Oregon University System Cell Matrix Assignment CLassification of Instructional Programs I Cell Level Assignments I LD I UD IMAI P'HD 1 01 Agricultural Business 3 3 3 )HD2 02 'Agriculturif Suci iens 03 Conservation 1 1 1 1

05 Area, Ethnic, Cultural Studies 09 C*omrmunications 2 2 2 2 10 Communications TechnoLogies 2 2 2 1 II Comtputer 'and Informationi Scienc&

13 Education 2 2 3 2 2

15 Engineering-Related Technology 11 S16' Lar~jguaoes anid Literatre.

Foreign.

2 2 2 2 19 Home Economics 22 Law, anid Lea StKd 1 1 2 22 23 EngLish Language and Literature 2 2 1 25 Library Science 1 26 Biotogical Sci. es, Lfe? "Siinc::

1 1 3 2 27 Mathematics 28' Rcse&tve 01 alf C 29 Military Technologies 1 1 1 1 310 Mutfn~ ~~lfiayStudies 3 3 2 22 31 Parks, Rec, Leisure, Fitness Studies

/ 32 Basic ~Sk~i'R '

1 34 Health Related Knowledge/Skill 2 2 2 3 Phi[osophy and Religijon 40 Physical Sciences 2 2 3 22 4 Science TehrImo~ogies_7 1 1 1 2 42 Psychology jj43' Protective Services. 2 2 2 1 44 Public Administration and Services 45<Sociat Siciences nd His~tory.~; 2 50 Visual and Performing Arts 3 3 2 5,1, Heafth Profe'ssions, Relat(,d'Sciences, 51.20 Pharmacy 5 5 5 5 51.24 Vuinay mMedicine (DVM)e s 2 3 52 Busfiness gt Administrative Servicesý, 2 1 1r 1 15

Oregon State University Comparison of 05-06 Actual and 06-07 State Appropriations Percent 05-06 RAM 06-07 RAM Change Corvallis Campus Celt Funding $ 62,941,020 $ 62,941,020 0.00%

Targeted Programs 15,776,087 15,698,046 -0.49%

Vet Med Program Phase-in 3,171,426 3,171,426 0.00%

Sub-total 81,888,533 81,810,492 -0.10%

Tuition Buydown - GF funding 441,023 882,643 100.14%

Faculty Recruit/Retain 120,647 120,647 0.00%

Compensation Funding 2,510,253 5,020,506 RAM total 84,960,456 87,834,288 3.38%

Cascades Campus 3,407,726 3,458,956 1.50%

Statewide Public Services (SWPS)

Agricultural Experiment Station 26,866,268 27,802,337 3.48%

OSU Extension Service 19,336,636 20,076,088 3.82%

Forest Research Lab 2,721,946 2,814,706 3.41%

SWPS total 48,924,850 50,693,131 3.61%

Corvallis, Cascades and SWPS totals S 137,293,032 $ 141,986,375 3.42%

16

Oregon State University Growth in Revenues and Expenditures Fiscal Years 1998 - 2007 FY2002 - FY2007- Government Appropriations are included in Operating Revenue to be consistent with prior years.

FY2006 & FY2007 Total Revenue is trended.

Source: Audited Financial Statements; FY07 E&G Initial Budget; OSU Data Warehouse.

Oregon State University FY06 and FY07 EbtG Revenue Sources FY07 Initial EEtG Budget Revenues : $243.2 Miltion

%10%

E5 RAM Funding EDTargeted Programs 0 Net Tuition Et Fees 0 Other Revenue FY06 Initial EEtG Budget Revenues = $233.1 Million 8%

I[ERAM Funding MTargeted Programs 0 Net Tuition Et Fees 0 Other Revenue I 18

Oregon State University Contribution Ratios for State Appropriations and Tuition Ft Other Revenue Fiscal Year 1998-2006 Actual and 2007 Initial Budget 70%

60% -

50%

40%

30%

20%

10%

0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 El State Appropriations 46.6% 49.7% 50.3% 48.2% 46.6% 41.2% 37.4% 34.7% 35.9% 36.1%

IEDTuition & Other Revenue 53.4% 50.3% 49.7% 51.8% 53.4% 58.8% 62.6% 65.3% 64.1% 63.9%

Source: OSU Data Warehouse, FY07 E&tG Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

19

Oregon State University Education and General State Appropriations Fiscal Years 1998 to 2006 Actual and 2007 Budget

$00

83. 88.8 88.4 881.1 76.8 793 8-

$80 - 87

$60

$40o

$20

$0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: OSU Data Warehouse, FY07 E&G Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

Net Tuition Revenue Fiscal Years 1998 to 2006 Actual and 2007 Budget

$120 -

S82.

S64.

$40

$20 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: OSU Data Warehouse, FY07 E&G Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

20

Oregon State University Resource Fee Revenue Fiscal Years 1998 to 2006 Actual and 2007 Budget

$14 C

0

$12 -110 1.

$10 -

$2 iilliil

3. ~4.0 p3.9

$4-

$0-I I 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: OSU Data Warehouse, FY07 E&G Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

Education and General Indirect Cost Recovery

-1.* V,-- -1000 +-* ")/nr%4 A-+-1* -A IM'1*7 n,,A-,*

$30

$25

$20

$15

$10

$5

$0 oous 624 523 700 75 19 124 125 1,350 1,185 1,060

" Research Equip 1,268 1,312 1,411 1,651 1,796 1,869 1,964 2,092 2,120 "l Bldg Use Credit 690 676 700 752 722 786 818 859 1,046 1,060

" Gen Fund 14,108 13,504 13,478 14,831 16,002 17,074 19,200 20,375 21,830 22,260

In FY05 and years thereafter, alt components of Indirect Cost Recovery are included in the E&G Budget except payments to OUS.

Source: OSU Data Warehouse, FY07 EKG Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

21

Oregon State University Revenues Per Student FTE Education t General Fund (excluding ICR)

Fiscal Years 1998 to 2006 Actual and 2007 Initial Budget

$12,000

$10,000

$8,000

$6,000

$4,000

$2,000

$0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

" Resource Fees 266 268 245 313 338 420 597 614 653 637 El Net Tuition* 3,378 3,233 3,286 3,378 3,670 3,991 4,477 5,171 4,956 5,283 E State Appropriation 4,857 5,202 5,303 5,388 5,032 4,400 4,291 4,366 4,580 4,681

Gross tuition revenue less remissions and increased scholarship in lieu of remissions budgeted in FY05 Source: OSU Data Warehouse, FY07 E&G Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

22

Oregon State University State Appropriation per Student FTE Fiscal Years 1998 to 2006 Actual and 2007 Budget

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Includes state appropriations for Oregeon University System technology operations of

$131, $133, and $131 per student in 2005, 2006, and 2007 respectively.

Net Tuition per Student FTE Fiscal Years 1998 to 2006 Actual and 2007 Budget

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Resource Fees per Student FTE Fiscal Years 1998 to 2006 Actual and 2007 Budget

$7001

$600 4

$5200 266 6624 30$0

$200 31

$0 1....

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: OSU Data Warehouse, FY07 EMG Initial Budget. Excludes Statewide Public Service and OSU-Cascades.

23

Oregon State University Total Student FTE Enrollments Fiscal Years 1998 to 2006 Actual and 2007 Budget

-~20.0 -~- 18.4 -18.5 -18.4

-1 S15.0 0.0J 5.0 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Oregon University System Institutional Research Oregon State University - Corvallis Campus Budgeted Student Head Count / FTE - FY2007 HC FTE Undergraduate - Resident 13,798 13,449 Undergraduate - Non-resident 1,961 1,911 Graduate - Resident 1,927 1,878 Graduate - Non-resident 1,603 1,562 Total. 19,289 18,800 24

Oregon State University Operating Fund Balance*

Fiscal Years 1997 to 2006

$45

$40

$35

$30 2

$252182.

$20O7.

$15

$10

$5

$0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Fund Balance as a Percentage of Revenue*

Fiscal Years 1997 to 2006 16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Education and General Funds, Statewide Public Service and OSU-Cascades 25

OREGON STATE UNIVERSITY Selected Gift Fund Expenditures 1997 - 2006

£1A* 0 S6 0

S14.0

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.0 Institutionat Management El1997 2.079 5.390 0.229 0.515 2.757 1.543 4.916 E1998 2.731 3.897 0.167 0.767 2.672 1.044 5.634 01999 4.764 6.180 0.139 0.851 4.575 1.256 6.573 02000 4.712 6.142 0.211 0.785 3.847 1.163 8.236

2001 4.758 5.336 0.231 0.444 6.812 0.702 9.376 02002 6.029 6.363 0.157 0.995 6.706 0.763 10.720 M2003 5.582 5.035 0.236 1.228 7.400 0.740 10.331 02004 4.274 6.545 0.227 1.859 4.819 0.841 11.476 M2005 4.199 1.358 0.312 2.770 12.650 1.096 15.071 132006 6.211 1.129 0.365 3.250 12.750 1.489 12.633

2005 - $5.2 million transfer for debt service on Reser Stadium.

- 2005 - Aproximately $4.9 million was used in lieu of fee remissions.

SOURCE: OSU Data Warehouse; excludes physical plant. 26

Oregon State University Gift Expenditures per Student FTE - Instruction Fiscal Years 1997 to 2006

$400

$350

$300

$250

$200

$150

$100

$50

$0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: OSU Data Warehouse. AULinstructional expenditures in FS and M funds.

Gift Expenditures per Student FTE - Scholarships Fiscal Years 1997 to 2006

$900

$800 ~-

6

$700 -

$600

$400 - 361 -

$300

$200

$100 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: OSU Data Warehouse. ARLscholarship expenditures in FS and M funds.

27

Oregon State University Growth in Sponsored Program Revenues Fiscal Years 1998 to 2006

$180 o£ $160

$140 - m111P Ce)d1 Ca ,eSo r

$120 . ,

$100

$80 ***

$60

$20 " ' '

$0 1998 1999 2000 2001 2002 2003 20 04 2005 2006 IDDirect Costs El Indirect Costs I Effective Indirect Cost Recovery Rate on Sponsored Research Fiscal Years 1998 to 2006 30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0% f i 1998 1999 2000 2001 2002 2003 2004 20 )05 2006 Source: OSU Data Warehouse Research Awards Received (dotlars in millions)

FY2002-03 FY2003-04 FY2004-05 FY2005-06

Awards Amount # Awards Amount # Awards Amount # Awards Amount 1724 $124.6 1930 $146.7 1764 $178.0 1876 151.4

% change 11.9% 17.7% -8.6% 21.3% 6.3% -14.9%

Source: OSU Office of Post Award Administration

Comparison of Undergraduate Tuition, Room, and Board Rates OSU Competitor Universities with Undergraduate Admissions Overlap Fiscal Years 2006-2007 Total Tuition, Fees, Room 8t Board Resident undergraduate Nonresident undergraduate 2005-06 2006-07 %Change 2005-06 2006-07 % Change Colorado State University 11,032 11,616 5.0% Colorado State University 21,994 23,144 5.0%

Cornetl University 27,668 28,805 3.9% Cornelt University 40,667 42,445 4.2%

Iowa State University 11,831 12,780 7.4% Iowa State University 21,921 23,274 5.8%

Michigan State University 11,371 12,183 6.7% Michigan State University 21,095 22,032 4.3%

N. Carolina State University 11,219 11,824 5.1% N. Carolina State University 23,416 24,022 2.5%

Ohio State University 15,285 15,903 3.9% Ohio State University 26,508 27,798 4.6%

Pennsylvania State University 16,052 18,496 13.2% Pennsylvania State University 25,964 29,044 10.6%

Purdue University 13,288 14,226 6.6% Purdue University 26,654 28,396 6.1%

Oregon State University 12,315 12,948 4.9% Oregon State University 24,336 24,882 2.2%

Texas A&M University 13,118 14,626 10.3% Texas AtM University 20,798 22,876 9.1%

University of Arizona 11,958 12,614 5.2% University of Arizona 21,471 22,820 5.9%

UC Davis 18,919 19,677 3.9% UC Davis 28,095 29,523 4.8%

University of Illinois 15,810 17,682 10.6% University of Illinois 29,896 31,768 5.9%

University of Wisconsin 12,720 13,660 6.9% University of Wisconsin 27,560 27,660 0.4%

Tuition and Fees' Resident Undergraduate Nonresident Undergraduate 2005-06 2006-07 %Change 2005-06 2006-07 %Change Colorado State University 4,532 4,686 3.3% Colorado State University 15,494 16,214 4.4%

Cornetl University 17,368 18,060 3.8% Cornel[ University 30,367 31,700 4.2%

Iowa State University 5,634 6,060 7.0% Iowa State University 15,724 16,554 5.0%

Michigan State University 5,221 5,733 8.9% Michigan State University 14945 15582 4.1%

N. Carolina State University 4,368 4,784 8.7% N. Carolina State University 16,565 16,982 2.5%

Ohio State University 8,082 8,667 6.7% Ohio State University 19,305 20,562 6.1%

Pennsylvania State University 9,822 11,646 15.7% Pennsylvania State University 19,734 22,194 11.1%

Purdue University 6,458 7,096 9.0% Purdue University 19,824 21,266 6.8%

Oregon State University 5,385 5,604 3.9% Oregon State University 17,442 17,538 0.5%

Texas A&M University 6,233 6,966 10.5% Texas AS&M University 13,913 15,216 8.6%

University of Arizona 4,498 4,764 5.6% University of Arizona 14,011 14,970 6.4%

UC Davis 8,128 8,323 2.3% UC Davis 17,304 18,169 4.8%

University of Illinois 8,634 9,966 13.4% University of Illinois 22,720 24,052 5.5%

University of Wisconsin 6,220 6,740 7.7% University of Wisconsin 21,060 20,740 -1.5%

2 Room E Board Rates 2005-06 2006-07 %Increase Colorado State University 6,500 6,930 6.2%

Cornell University 10,300 10,745 4.1%

Iowa State University 6,197 6,720 7.8%

Michigan State University 6,150 6,450 4.7%

N. Carolina State University 6,851 7,040 2.7%

Ohio State University 7203 7236 0.5%

Pennsylvania State University 6,230 6,850 9.1%

Purdue University 6,830 7,130 4.2%

Oregon State University 6,894 7,344 6.1%

Texas A&M University 6885 7660 10.1%

University of Arizona 7,460 7,850 5.0%

UC Davis 10,791 11,354 5.0%

University of Illinois 7,176 7,716 7.0%

University of Wisconsin 6,500 6,920 6.1%

From websites. Based on first-year, full-time students with an academic year of 24 semester hours or 36 quarter hours.

2 From websites. Based on average room and board charges for first-year, full-time undergraduate to live and dine on campus during the academic year. 29

Top Land Grant Institutions U.S. News E World Report 2006 Best Colleges Tuition Rate Comparison Annual Full Tim e Rates @ 12 Hours Resident -Undergrad Non- Resident - Undergrad 05-061 06-07 %Change 1 05-061 06-07 % Change Oregon State University 4,176 4,320 3.3% 1 16,236 16,236 0.0%

Rank #

1 University of California - Berkley 7,434 7,800 4.7% 17,820 18,168 1.9%

2 University of Wisconsin - Madison 6,220 6,730 7.6% 21,060 20,730 -1.6%

3 University of Illinois - Urbana - Champaign 8,634 9,966 13.4% 22,720 24,052 5.5%

4 Pennsylvania State University - University Park 9,822 11,646 15.7% 19,734 22,194 11.1%

5 University of Florida 3,094 3,330 7.1% 17,222 17,860 3.6%

6 University of Maryland - College Park 6,566 7,906 16.9% 17,222 21,345 19.3%

7 University of Georgia 3,638 4,628 21.4% 15,858 16,848 5.9%

8 Ohio State University - Columbus 8,082 8,667 6.7% 19,305 20,562 6.1%

9 Purdue University - West Lafayette (IN) 6,458 7,096 9.0% 19,824 21,266 6.8%

10 Rutgers- New Brunswick (NJ) 7,336 9,958 26.3% 14,934 18,463 19.1%

11 Texas A & M University - College Station 6,233 6,966 10.5% 13,913 15,216 8.6%

12 University of Delaware 6,614 6,980 5.2% 16,770 17,690 5.2%

13 University of Connecticut 6,096 6,456 5.6% 18,600 19,656 5.4%

14 Michigan State University 5,221 5,733 8.9% 14,945 15,582 4.1%

15 University of Minnesota - Twin Cities 6,878 8,822 22.0% 18,308 20,452 10.5%

16 North Carolina State University - Raleigh 4,368 4,784 8.7% 16,536 16,982 2.6%

17 Auburn University (AL) 5,278 5,496 4.0% 14,878 15,496 4.0%

18 Iowa State University 4,890 5,086 3.9% 14,980 15,580 3.9%

19 University of Tennessee 5,290 5,520 4.2% 16,360 16,828 2.8%

20 University of Vermont 9,456 9,840 3.9% 23,640 24,816 4.7%

21 University of Arizona 4,498 4,764 5.6% 14,011 14,970 6.4%

22 University of Nebraska - Lincoln 5,598 5,928 5.6% 14,508 15,378 5.7%

23 University of New Hampshire 9,778 10,401 6.0% 21,498 22,851 5.9%

24 University of Massachusetts - Amherst 9,278 9,595 3.3% 17,501 17,818 1.8%

25 Colorado State University 4,532 4,686 3.3% 15,494 16,214 4.4%

26 University of Kentucky 8,718 9,765 10.7% 19,197 20,955 8.4%

27 Washington State University 5,506 5,888 6.5% 14,514 15,528 6.5%

Source: Individual University websites

Top Land Grant Institutions Top Two Tiers Ranked in Order U.S. News Et World Report 2006 Best Colleges

1. University of California - Berkley

2. University of Wisconsin - Madison

3. University of Illinois - Urbana - Champaign

4. Pennsylvania State University - University Park

5. University of Florida

6. University of Maryland - College Park

7. University of Georgia

8. Ohio State University - Columbus

9. Purdue University - West Lafayette (IN)

10. Rutgers- New Brunswick (NJ)

11. Texas A Et M University - College Station

12. University of Delaware

13. University of Connecticut

14. Michigan State University

15. University of Minnesota - Twin Cities

16. North Carolina State University - Raleigh

17. Auburn University (AL)

18. Iowa State University

19. University of -Tennessee

20. University of Vermont

21. University of Arizona

22. University of Nebraska - Lincoln

23. University of New Hampshire

24. University of Massachusetts - Amherst

25. Colorado State University

26. University of Kentucky

27. Washington State University Tier Three (Alphabetical - Unranked)

Kansas State University Louisiana State University - Baton Rouge Mississippi State University New Mexico State University Oklahoma State University Oregon State University South Carolina State University South Dakota State University University of Arkansas University of Idaho University of Maine - Orono University of Nevada - Reno University of Rhode Island University of Wyoming Utah State University West Virginia University 31

Oregon State University - Corvallis Campus 2006-07 Academic Year Tuition and Required Fees - Per Term FEES I Credit I Undergraduate Tuition Tech- Health Total Total Fees + Tuition Total Fees + Tuition Hours Reside nts Non-Residents nology Building Incidental Service Fees Residents Non-Residents 1 120.00 451.00 12.00 23.00 137.15 104.00 276.15 396.15 727.15 2 10.00 902.00 20.00 25.00 142.15 104.00 291.15 531.15 1,193.15 3 360.00 1,353.00 28.00 27.00 147.15 104.00 306.15 666.15 1,659.15 4 48 0.00 1,804.00 36.00 29.00 152.15 104.00 321.15 801.15 2,125.15 5 60p0.00 2,255.00 44.00 31.00 157.15 104.00 336.15 936.15 2,591.15 6 72 0.00 2,706.00 52.00 33.00 162.15 104.00 351.15 1,071.15 3,057.15 7 10.00 3,157.00 60.00 35.00 167.15 104.00 366.15 1,206.15 3,523.15 8 9610.00 3,608.00 68.00 37.00 172.15 104.00 381.15 1,341.15 3,989.15 9 1,08 0.00 4,059.00 76.00 39.00 177.15 104.00 396.15 1,476.15 4,455.15 10 1,20 0.00 4,510.00 84.00 41.00 182.15 104.00 411.15 1,611.15 4,921.15 11 1,32 .0.00 4,961 .00 92.00 43.00 187.15 104.00 426.15 1,746.15 5,387.15 12 1,44.0.00 5,412.00 100.00 45.00 192.15 104.00 441.15 1,881.15 5,853.15 13 1,4 0.00 5,412.00 100.00 45.00 192.15 104.00 441.15 1,881.15 5,853.15 14 1,4 0.00 5,412.00 100.00 45.00 192.15 104.00 441.15 1,881.15 5,853.15 15 1,44 .0.00 5,412.00 100.00 45.00 192.15 104.00 441.15 1,881.15 5,853.15 16 1,44*0.00 5,412.00 100.00 45.00 192.15 104.00 441.15 1,881.15 5,853.15 17 1,56.0.00 5,863.00 100.00 45.00 192.15 104.00 441.15 2,001.15 6,304.15 18 1,68 0.00 6,314.00 100.00 45.00 192.15 104.00 441.15 2,121.15 6,755.15 19 1,80'0.00 6,765.00 100.00 45.00 192.15 104.00 441.15 2,241.15 7,206.15 20 1,92.0.00 7,216.00 100.00 45.00 192.15 104.00 441.15 2,361.15 7,657.15 21 2,04A0.00 7,667.00 100.00 45.00 192.15 104.00 441.15 2,481.15 8,108.15 22 2,16 .0.00 8,118.00 100.00 45.00 192.15 104.00 441.15 2,601.15 8,559.15 23 2,28 .0.00 8,569.00 100.00 45.00 192.15 104.00 441.15 2,721.15 9,010.15 24 2,40 0.00 9,020.00 100.00 45.00 192.15 104.00 441.15 2,841.15 9,461.15 25 2,52 .0.00 9,471.00 100.00 45.00 192.15 104.00 441.15 2,961.15 9,912.15 Each Add'i Credit Hour 120.00 451.00 32 Qualified tuition and fees do not include student health insurance fees for Tax Relief Act reporting.

Oregon State University - Corvallis Campus 2006-07 Academic Year Tuition and Required Fees - Per Term _____________

FEES Graduate Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition Hours Residents Non-Residents nology Building Incidental Service Fees Residents Non-Residents 1 328.00 532.00 12.00 23.00 144.15 104.00 283.15 611.15 815.15 2 656.00 1,064.00 23.00 26.00 150.15 104.00 303.15 959.15 1,367.15 3 984.00 1,596.00 34.00 29.00 156.15 104.00 323.15 1,307.15 1,919.15 4 1,312.00 2,128.00 45.00 32.00 162.15 104.00 343.15 1,655.15 2,471.15 5 1,640.00 2,660.00 56.00 35.00 168.15 104.00 363.15 2,003.15 3,023.15 6 1,968.00 3,192.00 67.00 38.00 174.15 104.00 383.15 2,351.15 3,575.15 7 2,296.00 3,724.00 78.00 41.00 180.15 104.00 403.15 2,699.15 4,127.15 8 2,624.00 4,256.00 89.00 43.00 186.15 104.00 422.15 3,046.15 4,678.15 9 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 10 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 11 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 12 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 13 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 14 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 15 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 16 2,952.00 4,792.00 100.00 45.00 192.15 104.00 441.15 3,393.15 5,233.15 Each Add'!

Credit HoL 328.00 532.00 Qualified tuition and fees do not include student health insurance fees for Tax Relief Act reporting.

Note: For additional required fees, refer to Programmatic Resource Fees table.

OREGON STATE UNIVERSITY - PHARMACY PHARM D PROGRAM 2006-07 Academic Year Tuition and Required Fees - Per Term Returning Students FEES Pharmacy Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition Hours Residents Non-Residents nology Building Incidental Service Fees Residents Non-Residents Full-Time 12 or more Credit Hours 4,028.00 7,350.00 100.00 45.00 192.15 104.00 441.15 4,469.15 7,791.15 Part-Time (Degree Students) 1 336.00 613.00 12.00 23.00 137.15 104.00 276.15 612.15 889.15 2 672.00 1,226.00 20.00 25.00 142.15 104.00 291.15 963.15 1,517.15 3 1,008.00 1,839.00 28.00 27.00 147.15 104.00 306.15 1,314.15 2,145.15 4 1,344.00 2,452.00 36.00 29.00 152.15 104.00 321.15 1,665.15 2,773.15 5 1,680.00 3,065.00 44.00 31.00 157.15 104.00 336.15 2,016.15 3,401.15 6 2,016.00 3,678.00 52.00 33.00 162.15 104.00 351.15 2,367.15 4,029.15 7 2,352.00 4,291.00 60.00 35.00 167.15 104.00 366.15 2,718.15 4,657.15 8 2,688.00 4,904.00 68.00 37.00 172.15 104.00 381.15 3,069.15 5,285.15 9 3,024.00 5,517.00 76.00 39.00 177.15 104.00 396.15 3,420.15 5,913.15 10 3,360.00 6,130.00 84.00 41.00 182.15 104.00 411.15 3,771.15 6,541.15 11 3,696.00 6,743.00 92.00 43.00 187.15 104.00 426.15 4,122.15 7,169.15 Newly Admitted Students FEES Pharmacy Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition Hours Residents Non-Residents nology Building Incidental Service Fees Residents Non-Residents Full-Time 12 or more Credit Hours 4,361.00 7,683.00 100.00 45.00 192.15 104.00 441.15 4,802.15 8,124.15 Part-Time (Degree Students) 363.00 640.00 12.00 23.00 137.15 104.00 276.15 639.15 916.15 2 726.00 1,280.00 20.00 25.00 142.15 104.00 291.15 1,017.15 1,571.15 3 1,089.00 1,920.00 28.00 27.00 147.15 104.00 306.15 1,395.15 2,226.15 4 1,452.00 2,560.00 36.00 29.00 152.15 104.00 321.15 1,773.15 2,881.15 5 1,815.00 3,200.00 44.00 31.00 157.15 104.00 336.15 2,151.15 3,536.15 6 2,178.00 3,840.00 52.00 33.00 162.15 104.00 351.15 2,529.15 4,191.15 7 2,541.00 4,480.00 60.00 35.00 167.15 104.00 366.15 2,907.15 4,846.15 8 2,904.00 5,120.00 68.00 37.00 172.15 104.00 381.15 3,285.15 5,501.15 9 3,267.00 5,760.00 76.00 39.00 177.15 104.00 396.15 3,663.15 6,156.15 10 3,630.00 6,400.00 84.00 41.00 182.15 104.00 411.15 4,041.15 6,811.15 11 3,993.00 7,040.00 92.00 43.00 187.15 104.00 426.15 4,419.15 7,466.15

OREGON STATE UNIVERSITY - VETERINARY MEDICINE 2006-07 Academic Year Tuition and Required Fees - Per Term FEES Graduate Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition Hours Residents Non-Residents nology Building Incidental Service Fees Residents Non-Residents First - Third Year Students Fu~ll-Time 4,754.00 9,470.00 100.00 45.00 192.15 104.00 441.15 5,195.15 9,911.15 Fourth Year Students Full -Time 3,566.00 7,103.00 100.00 45.00 192.15 104.00 441.15 4,007.15 7,544.15 Footnote:

Veterinary Medicine students wilt[ not be assessed the over-time fee. This exception to the general policy for other graduate programs results from the Veterinary Medicine curricular design which requires Larger carrying toads in certain terms for normal progress toward a degree.

Third Year veterinary students registering at Oregon State University for a session scheduled early May to mid-July will be assessed a one-term fee as above.

Fourth Year students taking a series of study, externship, and vocation blocks from mid-July through early June will be assessed four term fees during that period of time. Fee payment dates will correspond to normal Fall, Winter, Spring and Summer term schedule.

Qualified tuition and fees do not include student health insurance fees for Tax Relief Act reporting.

35

Oregon State University 2006-07 Academic Year - Per Term Programmatic Resource Fees - colleges, schools and majors Fees are per term unless otherwise specified Undergraduate Graduate Preengineering ($20.00 per credit hour up to $205.00 per term) 205.00 Engineering ($44.00 per credit hour up to $443.00 per term) 443.00 430.00 School of Business 130.00 MBA Students ($35.00 per credit hour up to $350.00 per term) 350.00 Weatherford Residential College 250.00 250.00 College of Liberal Arts upper division courses 40.00 40.00 Department of Art 100.00 100.00 College of Science upper division courses 40.00 40.00 Department of Human Development Et Family Sciences majors 75.00 Department of Design and Human Environment Apparel Design 100.00 Interior Design 100.00 Housing Studies 100.00 Interdisciplinary Studies 35.00 Educational Resources 50.00 50.00 Honors College 250.00 250.00 Matriculation Fee (one time on all new and transfer students) 300.00 175.00 OREGON STATE UNIVERSITY - CASCADES CAMPUS Universal and Programmatic Resource Fees - colleges, schools and majors Fees are per term unless otherwise specified Undergraduate Graduate Department of Art 100.00 100.00 Educational Resources 50.00 50.00 Mtiulation Fee (one time on all new and transfer students) 300.00 175.00ý 36

OREGON STATE UNIVERSITY - CASCADES CAMPUS 2066-07 Academic Year Tuition and Required Fees - Per Term FEES Undergraduate Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition I Hours IResidents Non-Residents Inology Building Incidental Service Fees Residents Non-Residents 1 120.00 451.00 12.00 23.00 81.00 0.00 116.00 236.00 567.00 2 240.00 902.00 20.00 25.00 85.00 0.00 130.00 370.00 1,032.00 3 360.00 1,353.00 28.00 27.00 89.00 0.00 144.00 504.00 1,497.00 4 480.00 1,804.00 36.00 29.00 93.00 0.00 158.00 638.00 1,962.00 5 600.00 2,255.00 44.00 31.00 97.00 0.00 172.00 772.00 2,427.00 6 720.00 2,706.00 52.00 33.00 101.00 0.00 186.00 906.00 2,892.00 7 840.00 3,157.00 60.00 35.00 105.00 0.00 200.00 1,040.00 3,357.00 8 960.00 3,608.00 68.00 37.00 109.00 0.00 214.00 1,174.00 3,822.00 9 1,080.00 4,059.00 76.00 39.00 113.00 0.00 228.00 1,308.00 4,287.00 10 1,200.00 4,510.00 84.00 41.00 117.00 0.00 242.00 1,442.00 4,752.00 11 1,320.00 4,961.00 92.00 43.00 121 .00 0.00 256.00 1,576.00 5,217.00 12 1,440.00 5,412.00 100.00 45.00 125.00 0.00 270.00 1,710.00 5,682.00 13 1,440.00 5,412.00 100.00 45.00 125.00 0.00 270.00 1,710.00 5,682.00 14 1,440.00 5,412.00 100.00 45.00 125.00 0.00 270.00 1,710.00 5,682.00 15 1,440.00 5,412.00 100.00 45.00 125.00 0.00 270.00 1,710.00 5,682.00 16 1,440.00 5,412.00 100.00 45.00 125.00 0.00 270.00 1,710.00 5,682.00 17 1,560.00 5,863.00 100.00 45.00 125.00 0.00 270.00 1,830.00 6,133.00 18 1,680.00 6,314.00 100.00 45.00 125.00 0.00 270.00 1,950.00 6,584.00 19 1,800.00 6,765.00 100.00 45.00 125.00 0.00 270.00 2,070.00 7,035.00 20 1,920.00 7,216.00 100.00 45.00 125.00 0.00 270.00 2,190.00 7,486.00 21 2,040.00 7,667.00 100.00 45.00 125.00 0.00 270.00 2,310.00 7,937.00 22 2,160.00 8,118.00 100.00 45.00 125.00 0.00 270.00 2,430.00 8,388.00 23 2,280.00 8,569.00 100.00 45.00 125.00 0.00 270.00 2,550.00 8,839.00 24 2,400.00 9,020.00 100.00 45.00 125.00 0.00 270.00 2,670.00 9,290.00 25 2,520.00 9,471.00 100.00 45.00 125.00 0.00 270.00 2,790.00 9,741.00 Each Add'i Credit Hour 120.00 451.00 Health Service Fee is incorporated with the Incidental Fee.

Qualified tuition and fees do not include student health insurance fees for Tax Relief Act reporting.

Note: For additional required fees, refer to Programmatic Resource Fees Table.

OREGON STATE UNIVERSITY - Cascades Campus 2006-07 Academic Year Tuition and Required Fees Per Term FEES Graduate Total Total Credit Tuition Tech- Health Total Fees + Tuition Fees + Tuition Hours Residents Non-Residents nology Building Incidental Service Fees Residents Non-Residents 1 328.00 532.00 12.00 23.00 85.00 0.00 120.00 448.00 652.00 2 656.00 1,064.00 23.00 26.00 90.00 0.00 139.00 795.00 1,203.00 3 984.00 1,596.00 34.00 29.00 95.00 0.00 158.00 1,142.00 1,754.00 4 1,312.00 2,128.00 45.00 32.00 100.00 0.00 177.00 1,489.00 2,305.00 5 1,640.00 2,660.00 56.00 35.00 105.00 0.00 196.00 1,836.00 2,856.00 6 1,968.00 3,192.00 67.00 38.00 110.00 0.00 215.00 2,183.00 3,407.00 7 2,296.00 3,724.00 78.00 41.00 115.00 0.00 234.00 2,530.00 3,958.00 8 2,624.00 4,256.00 89.00 43.00 120.00 0.00 252.00 2,876.00 4,508.00 9 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 10 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 11 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,'222.00 5,062.00 12 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 13 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 14 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 15 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 16 2,952.00 4,792.00 100.00 45.00 125.00 0.00 270.00 3,222.00 5,062.00 Each Add'I Credit Hour 328.00 532.00 Health Service Fee is incorporated with the Incidental Fee Qualified tuition and fees do not include student health insurance fees for Tax Relief Act reporting.

Note: For additional required fees, refer to Programmatic Resource Fees Table.

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Oregon State University Capital Projects The following schedule is a list of capital projects authorized by the Oregon University System Board and the Legislature for OSU as of June 30, 2006. Each biennium OUS campuses submit budget requests to the OUS Board based on their campus master plans and identified needs. The Oregon University System presents a capital budget to the Governor and the Legislature, which authorizes expenditure [imitation for approved projects and identifies sources of funding. Limitation is provided for six years and then expires if it has not been used within that timeframe. The OUS may also seek authorization for expenditure [imitation from the Legislative Emergency Board for projects that were not anticipated during the capital budgeting process.

The OSU Capital Projects that follow are listed according to the biennium of legislative authorization and the sources of financing identified for the projects. Current funding sources include:

XI-G Bonds represent bonds issued by the state for the Oregon University System under Article XI of the Oregon Constitution. The university must raise a one to one cash match to qualify for the issuance of XI-G Bonds. Debt service is paid by the state general fund, and OSU is not responsible for debt repayment.

" XI-F Bonds are used to finance self-liquidating and self supporting projects, and these bonds are a direct liability of the university. Revenues sources for repayment include student building and incidental fees, residential housing receipts, income from athletics, and parking fees.

" Other Funds are generally gifts and donations to support buitding construction and improvements.

" Lottery Bonds are issued by the state with the debt service repaid with revenues generated by the state lottery. Projects funded with Lottery Bonds must contribute to economic development.

The State Energy Loan Program (SELP) is a low interest loan program for energy conservation projects, administered through the State of Oregon Office of Energy. Repayment is funded through energy savings generated by the projects.

Certificates of Participation (COPS) are financing instruments issued by the state, generally for equipment and technology, which are backed by the equipment or improvement being purchased.

Capital spending planned for FY 2007 includes construction of a new Energy Plant, an addition to the College of Veterinary Medicine Large Animal Teaching Hospital, improvements to Apperson Hall, and Phase II of the Reser Stadium expansion (pending approval by the Legislative Emergency Board).

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Oregon State University Authorized Capital Projects As of June 30, 2006 General XI-G XI-F Other Lottery SELP Loans Project Title Biennium Funds Bonds Bonds Bonds Et COP's TOTAL Poling/Cauthorn Halts Seismic Upgrade 01-03 $ - $ 2,000,000 $ $ - $ $ 2,000,000 New Student Res/Apartments - Ph2 01-03 10,000,000 10,000,000 Dining Center Renovations 01-03 4,600,000 400,000 5,000,000 Student Family Housing Aparts/childcare 01-03 8,500,000 8,500,000 Parking Services Building 01-03 1,600,000 1,600,000 Student Service Center/Snell Demo 01-03 5,650,000 5,650,000 Alumni Center Parking Improvements 01-03 500,000 500,000 CH2M Hill Alumni Ctr Expansion 01-03 2,500,000 2,500,000 Gill Coliseum Expansion 01-03 11,500,000 11,500,000 Memorial Union Remodel, Phase 3 03-05 5,500,000 5,500,000 College InnRenov/Replacement 03-05 1,000,000 11,000,000 12,000,000 Arnold Dining Center Remodel 03-05 7,000,000 7,000,000 Poling Hall Remodel 03-05 9,000,000 9,000,000 New Single Student Suites/Apartments 03-05 1,000,000 11,000,000 12,000,000 Instrumentation/ Flow Imaging Lab Add 03-05 650,000 650,000 Graf Hall Remodel 03-05 4,750,000 9,500,000 4,750,000 19,000,000 Cauthorn Hall Housing Remodel 05-07 10,500,000 10,500,000 Student Family Housing & Childcare Center 05-07 17,500,000 17,500,000 Student Housing Suites Et Apartments 05-07 17,500,000 17,500,000 Residential Infrastructure Deferred Maintenance 05-07 3,000,000 3,000,000 Arnold Dining Center Remodel 05-07 1,000,000 1,000,000 Finley Hall remodel 05-07 12,500,000 12,500,000 Memorial Union Phase 3 Renovation 05-07 7,500,000 7,500,000 New Steam Plant 05-07 12,000,000 17,000,000 18,000,000 8,000,000 55,000,000 Research Park Multi-tenant #1 and #2 05-07 1 1 Our Little Village Child Care Center 05-07 2,200,000 - 2,200,000 Education Hall Remodel 05-07 7,152,000 1,355,000 8,507,000 Apperson Hall Remodel 05-07 10,000,000 10,000,000 Large Animal Hospital Addition 05-07 12,000,000 12,000,000 Nash Hall Seismic Improvements 05-07 2,000,000 2,000,000 Animal Sciences Education and Research Pavilion 05-07 - 4,000,000 4,000,030 8,000,000 Capital Repair/Code Compliance 05-07 3,682,700 4,029,600 1,590,399 Total $ 3,682,700 $ 24,779,600 $ 102,050,000 $ 137,140,400 $ 11,902,000 $ 9,355,000 $ 279,607,001 40

BUDGET REBASING:

PROCESS and OUTCOMES INTRODUCTION Oregon State University's Strategic Plan for the 21s" Century envisions the University to be among the Top 10 land-grant institutions in America. To achieve this vision, OSU will focus on three goals:

1. Provide outstanding academic programs that further strengthen our performance and pre-eminence in the five thematic areas.

2. Provide an excellent teaching and learning environment and achieve student access, persistence and success through graduation and beyond that matches the best land grant universities in the country.

3. Substantially increase revenues from private fundraising, partnerships, research grants, and technology transfers while strengthening our ability to more effectively invest and allocate resources.

Additionally, OSU will prioritize its academic resources and investments to focus on achieving distinction in selective areas within five thematic areas: advancing the arts and sciences as the foundation for scientific discovery, social and cultural enhancement, and progress in applied professions; understanding the origin, dynamics, and sustainability of Earth and its resources; optimizing enterprise, innovation, and economic development; realizing fundamental contributions in the life sciences and optimizing the health and well-being of the public; and managing natural resources that contribute to Oregon's quality of life and growing and sustaining natural resource-based industries.

Enhancing the quality of our teaching and learning environment, developing distinctive academic programs that define us as a leading land-grant university, building a world-class faculty, and creating a diverse university community requires that we define and pursue activities that contribute maximally to our goals, that given our current resource constraints our efforts are focused and aligned across the university, and that we are entrepreneurial in pursuing new revenue generation strategies.

An essential component of our total revenue is the Education and General (E&G) Fund budget.

The primary components of the E&G budget are tuition and fees, state subsidy support, and revenue from Indirect Cost Return. While the E&G budget by itself is not sufficient for the University to achieve its aspirations, it is important that E&G resources are allocated to support each unit's contribution to the multiple facets of OSU's mission, and that the budgeting process provides a level of budget stability and predictability.

After a two-year process of examining its E&G budget allocation process, the University is introducing a revised, distributed budget model. The budget review process analyzed sources and use of funds for each academic unit, linking revenues and expenses explicitly to generating units. The budget approach has two key elements: (1)budget rebasing that establishes new base budgets effective fall 2007 and (2)sharing of marginal revenue from tuition and state subsidy support and from indirect cost recoveries, and allocation of expenses beyond the 2006-07 academic year.

BUDGET REBASING PROCESS During the 2004-2005 academic year the University initiated an analysis of the way Education and General (E&G) funds revenues are allocated to academic and support units. The Budget 41

Allocation Model (BAM), used since 2003, essentially rebased budgets each year. There were no recurring base budgets for academic units other than resource fees or targeted funds they receive directly. The BAM was a prod uctivity-based relational budget where units received a proportion of the total productivity funds in relation to their proportion of total student credit hours, majors, etc. The budget review process sought to establish base budgets and then have productivity driven allocations of budget increases or decreases from the base budget. It is expected that establishing base budgets will provide a certain level of budget stability and predictability.

Guiding Principles

" Budgets are not an end in themselves, but a means to position units to contribute to the mission of the University and to the achievement of its strategic plan.

" Allocation of resources should be linked to units' missions.

" The E&G fund revenues and unit expenses are explicitly linked to generating unit&~

" Budget decisions will be based on accurate information about programs, incomes and costs that are consistently defined and rigorously reviewed.

" Budget reallocation decisions will align expectations for the mission of a unit, consistent with our strategic plan.

" While rebasing of budgets will result in reallocation of resources, the budget process must allow units to be entrepreneurial and pursue revenue generating strategies based on their comparative advantages while ensuring the common good of the University.

" Our budget process, discussions, and decisions will be transparent and consultative.

Analysis Two groups played an important role in the budget restructuring deliberations. The University Budget Committee led the overall analysis process, including developing and refining the methodology, developing strategies for allocating overhead costs to academic units, and helping in the refinement of data and assessing its accuracy. The Provost's Council critiqued and provided input during the development phase of the project and then provided input to university leadership relative to outcomes and their impact. Compilation of data and analysis was performed by the Office of Budget and Fiscal Planning.

The methodology involved the following steps:

1. Allocate revenues to departments/colleges (referred to as academic units). The primary components of revenues are state subsidy based on the resource allocation model used by the Oregon University System, tuition, and Indirect Cost Return. It also includes revenues generated through Summer Session and by offering courses through Extended Campus. These elements are already included in the university's base budget and are intended to fund teaching of the current levels of student credit hours.

2. Allocate expenses to academic units. These include:

a. Direct expenses, resulting from faculty and staff salaries and overhead costs, and services and supplies.

b. Overhead costs, where costs associated with administrative and academic support units are allocated to academic units as beneficiaries of services provided.

3. The difference between total revenues and total costs is a measure of the net revenue or cost for each academic unit. Net revenue implies that an academic unit is generating more revenue than it is expending, thus contributing to other units on campus. Net cost implies the opposite, i.e., a unit is using more resources than it is generating.

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Statewide Public Services (Agricultural Experiment Station, Forestry Research Laboratory and the OSU Extension Service) and Auxiliary units are also included in the analysis. These units contribute to OSU's mission in many ways. They also are recipients of the administrative and support services provided by the University.

Table 1 illustrates the cost allocation basis and the rationale used for allocating administrative overhead costs to academic units, Statewide Public Services (SWPS) and Auxiliaries. Some variability is inherent in the extent that such services are used by different units, and an attempt was made to represent some of this variability particularly with SWPS and Auxiliaries. However, it must be recognized that the intent of the analysis is to capture the directional trends and broad differences between revenues and expenses.

Data for fiscal year 2004 (2003-2004) and fiscal year 2005 (2004-2005) were used in the analysis. It was assumed that two years data would help us to smooth out some of the annual variability is revenues and expenses.

Table 1. Re-Basing Analysis Administrative Overhead Cost Allocation Methodologies Principle: Proportionately allocate net costs, once only, to consumers or beneficiaries of services provided.

Overhead Unit Cost Allocation Basis Rationale Services benefit units offering summer Summer Session student session courses. These same units receive Summer credit hours (pro rata summer session revenues and related RAM Session distribution) allocations based on student credit hours.

Services benefit students in instructional Total academic year student programs. These same units receive Student credit hours (pro rata instructional revenues and related RAM Affairs distribution) allocations based on student credit hours.

Undergraduate academic Subsidy is to support intercollegiate athletic year student credit hours programs the primary purpose of which is to Athletics (pro rata distribution) enhance the undergraduate experience.

Time and effort is distributed across Office of the Total Unclassified and institutional programs, and most efforts serve President Classified employees (FTE) the institution generally.

70% Unclassified FTE Office of the (instructional, Research & Time and effort is primarily devoted to faculty Provost and Professional), 30% matters in academic, research & professional Academic undergraduate student credit programs. In addition, significant effort is Affairs hours focused on undergraduate program issues.

Time and effort is distributed across University Total Unclassified and institutional programs, and most efforts serve Advancement Classified employees (FTE) the institution generally.

Pooled expenses for instructional and other Institutional E&G costs. Non-E&G programs pay these Management E&G Expenses costs directly.

Grad Fee Remissions allocated to SWPS based on Remissions directly support SWPS research actual costs programs 43

48% Graduate student credit hours, 32% Faculty FTE, University 20% Undergraduate student University Libraries' estimate of actual Libraries credit hours utilization of rprograms and services.

Distributes facility operating and maintenance costs based on occupancy, utilization and Facilities Assignable Square Footage space function. Includes costs of common Services and Space Classification and shared (unassigned) space.

Distributes costs based on utilization of services. Financial, administrative, Finance & accounting and purchasing functions are Admin Total expenditures (all funds) provided across all fund types.

Services benefit graduate programs. These Graduate academic year same units receive instructional revenues and Graduate student credit hours (pro rata related RAM allocations based on graduate School distribution) student credit hours.

50% Unclassified, Classified

& Graduate Assistant Estimated allocation of investments in employees; 50% total systems and staffing to support academic, Information academic year student credit research and administrative users. Allocated Services hours costs are net of other recoveries.

BUDGET REBASING OUTCOMES Table 2 summarizes the outcome from the base budget analysis. Different spending patterns in the two years are primarily due to the timing of expenses and one-time expenses. Although this process will undergo continuous refinement as cash flow patterns for future fiscal years are analyzed, the FY04 and FY05 analysis has provided a directional sense of major differences between resources generated and resources received.

Table 2. Sources and Uses Summary (FY04 and FY05)

Net Revenue (Cost)

(in $000)

I Net Revenue (Cost)

(in $000)

Transfer From/To Net as %Revenue

________________FY04 FY05 FYO4+FYO5 ACADEMIC COLLEGES Agricultural Sciences $ 474 ($ 395) 0.4% transfer from Business 1,930 1,950 17.5% transfer from Education 73 (465) 4.2% transfer to Engineering 3,281 (358) 4.4% transfer from Forestry (291) (831) 14:8% transfer to Health and Human Sciences 3,285 5,238 22.4% transfer from Liberal Arts 5,003 5,219 14.8% transfer from Oceanic and Atmospheric Sciences (971) ( 1,890) 18.9% transfer to Pharmacy 1,476 755 12.9% transfer from Science 6,445 9,182 16.8% transfer from Veterinary Medicine (799) ( 4,802) 24.7% transfer to 44

OTHER UNITS Agricultural Experiment Station (868) ( 3,688)

Extension Service 341 ( 1,006) _ _______

Forestry Research Laboratory (824) (827)

Auxiliary Services (2,413) (2,383) _________

The magnitude of transfers from the Colleges of Business, Health and Human Sciences, Liberal Arts, and Science reflect the fact that the core teaching enterprise is disproportionately funded at a low level. Consequently, the first priority is to reduce the net contributions from these four colleges over the next five years to less than 10%. While the total allocation for the next five years depends on the availability of resources to the University and proposed use of new funds, it is expected that $7.5 million in recurring funds will be transferred to these four colleges over the five period of 2006-2011. Based on the magnitude of the net resource transfer, new resources will be allocated among the four colleges as follows: Science, $2.5 million; Liberal Arts, $2 million; Health and Human Resources, $2 million; and Business, $1 million. Of the total amount, $2.5 million will be transferred to these colleges in 2006-2007, distributed as follows:

Science, $1 million; Liberal Arts, $800,000; Health and Human Sciences, $200,000; and Business, $500,000. It is expected that the new resources will be used to address faculty staffing needs in areas of increasing enrollment and to improve the quality of the learning environment, consistent with the first two goals of the strategic plan.

There will be no change in the base budgets for other academic colleges. It is important to recognize that none of the colleges are funded at an optimal level.

Resources for Rebasing Resources for rebasing budgets for Colleges of Business, Health and Human Sciences, Liberal Arts, and Science will come from three principal sources: a decrease in the E&G subsidy provided to Athletics, appropriate overhead charges to Auxiliaries and Statewide Public Services, and increased revenue from Extended Campus expected to be returned to central administration for reallocation.

The University provides subsidies to university-affiliated operations, such as Athletics, the OSU Foundation, and the OSU Alumni Association. These operations contribute significantly to the success of the University and to the enrichment of students' experiences. Resources provided by the University have supported growth in these operations. By mutual agreement, the University will decrease the subsidy provided to Athletics over the next five years, starting with a

$1.5 million decrease (from $4 million) in 2006-2007. While the University will continue to maintain its current support for the OSU Foundation, it is expected that as the Capital Campaign matures, the OSU Foundation will become a self-sustaining operation. As the Capital Campaign evolves, the University will also assess the outcomes from its financial support provided to the OSU Alumni Association and continuation of that support.

Academic units in total generate positive revenues that subsidize Statewide Public Services and Auxiliary Services through the overhead services (Table 1). Statewide Public Services include the Agricultural Experiment Station, Forest Research Laboratory, and the OSU Extension Service. It is recognized that the sources and use data for Statewide Public Services is more complex because they intersect with the academic enterprise in many ways. While recognizing this complexity, it is important that Statewide Public Services are assessed an overhead charge that recovers some of the overhead services provided to them. The University will implement a 45

phased-in schedule of charges over a five year period to recover appropriate overhead costs from Statewide Public Services.

Similar to the Statewide Public Services, Auxiliary Services (including Housing and Dining, Memorial Union, Dixon Recreation Center) are also recipients of University services. The University increased overhead charges to Auxiliaries to 1.5%in 2005-2006 following an Oregon University System mandate to recover costs from Auxiliary units. Following this directive, the University will further increase the overhead charge to 3% in 2006-2007. This will generate an additional $900,000.

In 2002, the University agreed to a 5-year budget distribution model with Extended Campus that allows Extended Campus to use its incremental fee to support its operation while returning 80%

of its generated revenue to academic units and using the other 20% for building program inventory. At the end of the five years in 2008-2009, the 20% revenue used for building their programs will return to central administration for reallocation. It is expected that this will amount to approximately $700,000 per year.

Since the completion of its strategic plan, the University has made selective investments in teaching and research initiatives. In many cases, these are multi-year commitments expected to be used as "seed money" for developing new programs. In all cases, continued support for these initiatives will be dependent on outcomes. As resources invested in these initiatives become available over the next few years, they will be returned to the E&G budget. A transparent process will help define the future use of the resources, including possible use in high-return, high-risk areas of growth.

Revenue Growth As articulated in the University Strategic Plan, we must increase revenues to enhance the quality of the educational experience for our students, and to increase program excellence.

Additionally, the University needs to examine the principles used for allocating new resources to provide appropriate incentives for units to contribute effectively to the implementation of the Strategic Plan. For example, to increase research, a significant proportion of new F&A recovery must go to programs that account for sponsored research. Similarly, to significantly enhance the quality of the learning environment (e.g. to decrease student to faculty ratios) resources from increases in state support and tuition must be directed to relevant programs. Additionally, the University must build a central reserve fund that, among other things, can be used to improve physical and information infrastructure for teaching and research, and for continued investments in targeted opportunities.

The University and academic units will pursue multiple approaches for increasing revenue, including:

" Maximizing revenue through tuition, including appropriate tuition rates and a higher proportion of non-resident students

" Private fund raising through the Capital Campaign

" Targeted state funds for signature research and economic development areas, and other line item funding sources

" Distance learning and summer session programs

" Revenue through partnerships, royalties, patents and other activities

" Cost reduction through elimination of duplication in services across the university and focusing of programs and services

" New entrepreneurial models for structuring and delivering programs 46

The State Board of Higher Education is currently working on strategic directions for the state system. We hope that the State Board provides us with greater flexibility in setting tuition rates and pursuing entrepreneurial revenue enhancing activities. Similarly, academic units within OSU are encouraged to take greater responsibility for identifying and implementing revenue generating initiatives and for spending decisions.

The rebasing process protects selective investments made to promote long-term growth and to enhance the learning environment. However, continuation of resources invested in those initiatives will be conditional upon an annual review of programs with respect to plans articulated to advance the goals of the Strategic Plan. Furthermore, since in many cases the investment is "seed money" for a fixed time period, the resources will be returned to the total E&G pool of resources for reallocation per the revised budget allocation model (see the following section) or targeted for new strategic initiatives.

ANNUAL CHANGES OF REVENUES AND EXPENSES The revised budget model generates budget adjustments that can be managed within the next five years. Base budgets will be reviewed and set every five years, with the first review in 2011 -

2012. A five-year review of budgets in the context of basic assumptions used in revenue and cost projections and OSU's share of state support from the Oregon University System, and changes in enrollment, student credit hour, and other productivity measures is necessary on a periodic basis.

Annual changes in revenues may result from state subsidy support, increases in tuition and fees, and increases resulting from indirect cost recoveries as a result of more research or a higher F&A rate. Informed by experience with the Budget Allocation Model, the University Budget Committee has been charged to develop a model and guidelines for allocating marginal revenue and allocation of expenses beyond the 2006-07 academic year. A draft proposal for the allocation of marginal revenues was developed in June 2006 that identifies three types of investments: base cost increases, program growth and new programs, and investments in central pools for:

Operating reserves

Rebasing commitments

Provosts and Presidents investment reserves

Instructional Facilities and Equipment

Technology infrastructure

Faculty salaries

Research Support

Unmet needs/Access BUDGETS FOR SUPPORT UNITS The budget model assumes that academic support units are funded at an appropriate level for the services they provide to the University. In the development of the Budget Allocation Model in 2003, it was suggested and subsequently used as a target, that approximately 30% of the E&G budget be allocated to support units. However, there has not been a systematic review of support units, both in terms of adequacy and quality of services provided or the resources allocated to units.

Guidelines for reviewing the effectiveness and efficiency of all support units have been developed. The intent of the review will be to provide the programs an opportunity to reflect on their programs and services; solicit input from students, staff, faculty, and other stakeholders on the services provided; develop approaches to enhance quality of programs and services; ensure 47

accountability; and enhance alignment of programs and services between support and academic units and with the OSU strategic plan. Implementation will start during the 2006-2007 academic year.

SUMMARY

The 2006-2007 unit budgets plus the $7.5 million addition to Colleges of Business, Health and Human Sciences, Liberal Arts, and Science, represent base budgets for each unit for the next 5 years. While the budgets will be reviewed each year in the context of each unit providing effective programs and services and making progress towards its strategic goals, maintaining budgets for a period of time will provide a level of budget stability and predictability. The budget transfers to the four colleges are based on funding current levels of student credit hours (SCH) and deal primarily with historical inequities in funding colleges that have experienced significant growth ih SCHs as a result of teaching bac core and service courses for the university.

Allocation of new resources must be aligned with growth and strategic goals of the university. A revised budget model, currently in development, will define guidelines for allocating new revenues.

It is important that the University and its units pursue revenue generating strategies.

Implications of such strategies should be carefully thought through in advance to insure that they contribute to University goals of enhancing the student learning experience and achieving distinction in selective programs, while avoiding unintended consequences for other parts of the university.

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2008 Enrollment Initiative Status Report and FY 2007 Allocations

Background

In February 2004, the Strategic Enrollment Planning Group recommended a 10-year plan to achieve OSU enrollment goals and increase net revenue. The foundation of this 2008 Enrollment Initiative was a strategic plan with these interconnected objectives:

Increase nonresident undergraduate enrollment (U.S. residents from outside Oregon and international students)

Increase net revenue to fund faculty positions, graduate enrollment, student of color enrollment, and other strategic initiatives

" Build OSU's enrollment infrastructure to benefit all students (this includes student information systems, on-line services, and transfer articulation)

To achieve these objectives, the Initiative calls for an investment of $500,000 each year for fiscal years 2005 to 2008, for a total investment of $2 million. Funds are recurring and cumulative, to be added to the base budgets of the units delivering the new programs and services. The initial investment of $500,000 was approved for FY05, with funding in subsequent years to be considered on the basis of progress toward the stated objectives.

FY 2005 Goals and Investments Goals: Increase new nonresident freshmen by 15%

Increase freshman -sophomore retention by 0.5%

Recruitment $150,000 Technology infrastructure 112,000 Student orientation and retention 100,000 Marketing 75,000 Student financial services 6,0

$500,000 As recurring investments, these allocations will continue in FY06 and beyond.

Pricing issues. Among our comparator group of universities, OSU has ranked among the highest in nonresident tuition and near the bottom in the percentage of tuition revenue remitted to students in the form of grants and scholarships. In response to these factors, 2008 Initiative called for a freeze on nonresident tuition for 2005-06 and elimination of the tuition remission cap imposed by the Oregon legislature. Both of these changes have been achieved, the fee remission cap was not lifted until July, too late to positively impact 2005-06 enrollments.

FY 2005 Outcomes For fall 2005, OSU experienced an 11 .9%increase in part-time student enrollment over fall 2004. While enrollment of Oregon first-time freshmen declined slightly at -0.5%,

49

non-resident enrollment increased slightly by .4%, with International freshmen seeing a 1.8% increase.

FY 2006 Goals and Investments An additional $200,000 was allocated for FY06 to achieve these goals:

" Increase new nonresident freshmen by an additional 10%

Increase freshman -sophomore retention by an additional 0.5%

FY06 Investments (added to FY05 allocations)

Student financial aid Et scholarships $80,000 International/ non-resident recruitment 65,000 Partnership Programs 5,0

$200,000 FY 2006 Outcomes Retention of first-year students from fall 2005 will not be fully known until fall 2006 data is available. It should be noted that OSU has had the largest graduating class the past two years consecutivel~y.

FY 2007 Continued Goals The $700,000 recurring investment will provide ongoing support for the activities established over the prior two years, including a full time admissions recruiter in the Bay area to cover the northern California territory.

Goals: Increase non-resident freshmen by an additional 10%

Increase freshman -sophomore retention by an additional 0.5%

50

Oregon State University Extended Campus Ecampus Revenue Allocation Model (ERAM)

Introduction The intent of establishing the Extended Campus Revenue Allocation Model (ERAM) is to create a mechanism for building and sustaining delivery of an inventory of degree and credit-bearing certificate programs specifically designed to meet the academic needs of the growing non-residential, non-traditional student body of Oregon State University. The ERAM is intended to enable this development and delivery by:

1. Providing incentives for departments to become active in teaching non-resident, non-traditionat OSU students.

2. Providing incentives for departments to collaborate with the Extended Campus in building and delivering the OSU distance and ontine program inventory.

3. Providing an additional source of revenue to departments to meet departmental growth and development needs.

4. Generating a "replacement" or additional revenue stream for University allocation for institutional sustainability and development.

Implementation The ERAM, as presented in this document, received final approval from the President's Office, the Provost's Office, and the Office of the Vice President for Administration and Finance for initial implementation Winter Quarter 2003.

The ERAM is based on the assumption that the SCH output of distance education courses, with an adequate degree inventory, has the potential of rapid and significant growth. The ERAM will be applied to an inventory of degree and certificate programs, identified through market analysis, that meet the academic needs of the rapidly growing lifelong learning population in Oregon and the U.S, and the goats for outreach of OSU departments and colleges.

Implementation of the ERAM is designed to stimulate growth of this inventory and programs, and is anticipated to result in a significant level of net revenue above costs for OSU over the 5-7 year period following its implementation.

51

Revenue Distribution Model The ERAM model is framed around a revenue distribution formula designed to complement the FY 2003 Budget Allocation Model (BAM). The BAM was developed by the FY 2003 Budget Reconciliation Committee and is based on the "dollars-follow-productivity" philosophy reflected in the ERAM.

I. The formula consists of four basic components:

1. Graduate and undergraduate tuition rates that are bench-marked to the published tuition rates for a single three-credit course on the Corvallis campus.

2. A distribution formula for tuition revenues using a ratio of 80% to the academic unit and 20% to program inventory development.*

3. A distribution formula for funding produced by the application of the RAM to eligible SCH using the ratio established by the BRC - 66.4% to academic units and 33.6% to central administrative units.**

4. A standardized distance-learning fee to operate the OSU Extended Campus centralized operations and infrastructure.***

II. Ecampus coordinates with OSU Division of Administration and Budget in tracking the student credit hour (SCH) productivity for each unit:

1. Tuition revenue is allocated by Ecampus based on current year SCH productivity -

distributed on a quarterly basis.

2. RAM revenue is allocated based on eligible prior year SCH productivity - distributed at the beginning of the fiscal year.

III. During Academic Year 06-07, the allocation ratio wilt be reviewed to determine the proposed future revenue allocations based on the following criteria:

1. Does the allocation ratio provide sufficient revenue flow to the departments participating in the delivery of the OSU Extended Campus distance degree inventory to support related departmental costs?

2. Does the allocation ratio provide sufficient incentive revenue for departmental growth and faculty development?

3. Are there emerging university-wide needs that require a larger percentage of the allocation ratio?

The 20% of the tuition revenue allocated to Ecampus for inventory development wilt terminate five years following the implementation of the ERAM. At that time, this 20% of tuition revenue wilt be allocated for reallocation by Administration and Budget.

- This distribution ratio is designed to "float" with the ratios produced by the BAM.

52

- - The distance education fee provides for the infrastructure and operating support of Ecampus. The distance education fee replaces the fees that on-campus, resident students pay for items such as student health services, athletic fees, residence building fees, etc.

Distribution Schedule for "Central Services" Although the final distribution of the "central services" portion of the RAM revenues realized under the ERAM are the decision of Administration and Budget, the ERAM model is based on the intent that this portion of the revenue be allocated among those units directly impacted by providing support services for the OSU off-campus student body. The allocation is being distributed on the following schedule, based on the level of participation by the units in providing service/infrastructure support for off-campus students and to Ecampus. Initial distribution is as follows:

30% - Information Services 30% - University Library*

30% - Student Services (Admissions, Registrar) 10% - Graduate School

The University Library is currently classified as an academic unit and is allocated a portion of the RAM revenue generated by Ecampus courses in the BAM calculations and distribution.

53

This page is Intentionally Blank 54

Oregon State University E-Campus Estimated Distribution of FY07 Revenues1 Productivity Reallocation Tuition Fee

$ 1,425,112 100.00% $ 5,649,140 100.00% TOTAL Unit Academic Units 66.40% Academic Units 80.00% $75 per SCH ESTIMATED Distribution % Admin Units 33.60% E-Campus 20.00% ALLOCATION Academic Units:

Ag 12.91% $ 122,164 Business 2.18% 20,629 See Note 3 below for explanation Forestry 1.47% 13,910 of tuition distribution to academic Education 11.45% 108,348 units Science 17.70% 167,490 CLA 45.61% 431,597 COAS 1.38% 13,059 Engineering 0.51% 4,826 Academic Affairs 0.59% 5,583 HHS 6.20% 58,669 Academic Units Total 100.00% 946,275 66.40% 4,519,312 80.00% 0 E-Campus 1,129,828 20.00% 2,764,694 3,894,522 Sales Et Service Income 30,000 30,000 Other Program Revenue 120,000 120,000 Admin Total 478,837 2 33.60% 0.00%

E-CAMPUS Total Allocation $ 1,425,112 100.00% $ 5,649,140 100.00% $ 2,914,694 9,510,109 Rounded to whole dollars based on estimated percentage distributions.

2 Distributed to initial budget of service units supporting Ecampus - 30% each to Library, Student Affairs and Information Services; 10% to Graduate School.

3 The academic units receive 80% of the tuition revenue generated by each course at the end of the term.

The distribution amounts are calculated based on student enrollments and whether the student credit hours are generated by an undergraduate course or graduate course.

55

Osu Oregon State UNIVERSITY 56

aSU Oregon State UNIVERSITY Finance and Administration Oregon State University, 640 Kerr Administration, Corvallis, Oregon 97331-2156 Phone 541-737-2447 1Fax 541-737-3033 August 20, 2007 TO: George Pernsteiner, Chancellor Oregon University System FROM: a k- Ca i~dge Vice President, Financ nd Administration

SUBJECT:

INSTITUTION CONTRACT OFFICERS The following list identifies individuals at Oregon State University (OSU) who have authority to sign on behalf of the Institution. This memo is in response to the requirement of OSSHE Contracting, Leasing and Licensing Manual, pages 1-2, paragraph 6. Authority of the contract officers listed below is effective immediately:

Edward J. Ray, President All Contracts Sabah Randhawa, Provost and Executive Vice President All Contracts Mark McCambridge, Vice President, Finance and Administration All Contracts Nancy Heiligman, Associate Vice President, All Contracts Finance and Administration All Contracts (2)

John M. Cassady, Vice President for Research George R. Holdren, Associate Vice President All Contracts (2) for Research Vincent Martorello, Director, Facilities Services Specified Contracts (1)

Donna Thwing, Manager, Contracts, Procurement &

Construction Contracting Specified Contracts (1)

Brian Wall, Acting Director, Technology Transfer, Specified Contracts (4)

Research Office Karyle Butcher, University Librarian Specified Contracts (3)

Brian Thorsness, Director, Business Services All Contracts Kelly Kozisek, Procurement & Contracts Manager All Contracts Tamara Bronson, Contracts Officer Specified Contracts (2)

Clem La Cava, Assistant Contracts Officer Specified Contracts (5)

Melody K. Oldfield, Director, University Marketing Specified Contracts (6)

Patricia Hawk, Interim Director, Sponsored Programs, All Contracts (2)

Research Office BT: cs cc: Contract Officers (1) Design, construction, and consulting contracts as delegated by the OUS Vice Chancellor for Finance and Administration.

(2) All contracts except specified contracts as in (1).

(3) Only loan agreements related to the Pauling Collection in the Valley Library.

(4) Only Material Transfer Agreements, License Agreements, and Confidentiality Agreements.

(5) Only publicly-funded research grants and contracts and all outgoing subcontracts.

(6) Only agreements primarily related to permissions for the use of the University's name, images or marks, and for trademark and product licensing agreements.

-Osu Oregon State UNIVERSITY Radiation Center Oregon State University, 100 Radiation Center, Corvallis, Oregon 97331-5903 T 541-737-2341 I F 541-737-0480 I http://ne.oregonstate.edu/facilities/radiation_center MEMORANDUM DATE: February 29, 2008 TO: Decommissioning File FROM: Steve Reese, Director

SUBJECT:

Annual Estimate of Decommissioning Costs Required by 10 CFR 50.75 (g)(3) - AMMENDED The estimated cost of decommissioning the OSTR as of June 2007 is $12.2 Million.

All the reference material for the following calculation was pulled off the U.S. Bureau of Labor and Statistics and U.S. Nuclear Regulatory Commission web pages. Burial costs come from NUREG- 1307, Rev. 12, Report on Waste Burial Charges: Escalationof Decommissioning Waste Disposal Costs at Low-Level Waste Burial Facilities.

Consumer Price Index (CPI)

CPI for all urban consumers, not seasonally adjusted, west urban region, all items CPI for June 2006 (Base 1982) = 207.9 CPI for 1993 (Base 1982) = 1.445 Energy Cost Factor (E)

Producer price indexes and percent changes for selected commodity grouping (Base 1982)

Commodity 05-43 Industrial Electrical Power (P) = 1.791 Commodity 05-73 Diesel Fuel (F) = 2.265 PWR: E = 0.58(P) + 0.42(F) = 0.58(1.791) + 0.42(2.265) = 1.990 = Value used BWR: E = 0.23(P) + 0.77(F) = 0.23(1.791) + 0.77(2.265) = 2.156 Burial Cost Factor (B)

Values of B for Washington (Base 1986)

PWR = 3.855 BWR = 9.008 Adjusting Base from 1986 to 1982 (1982 to 1986 = 1.326)

PWR = 3.855 (1.326) = 5.112 = Value Use (more representative)

BWR = 9.008 (1.326) = 11.945 Labor Cost Factor (L)

Employment cost index for total compensation, private industry workers, by region and area, not seasonally adjusted (Base 1982)

West = (2005)/(1982) = (104.2)/(42.2) = 2.469 Inflation Adjustment (IA)

From 10 CFR 50.75(c)(2):

]A = 0.65 (L) + 0.13 (E) + 0.22 (B)

IA = 0.65 (2.469) + 0.13 (1.990) + 0.22 (5.112) = 2.988 Inflation Factor (IF) and CPI Inflation Factor (IcPI) j2007 2.988 S=1.019

A 2.933 12007 I __ ___'P 2.079 aCII - 11993 1.44 1.445 1.439

CPI 2007 Decommissioning Cost Estimate Using NRC Calculation (2006 Estimate) x (IF) = ($12.0 Million) x (1.0 19) = $12.2 Million Based upon the methodology for calculating the inflation factor, the dollar value for the costs associated with labor, energy and burial is as follows:

Labor $6.5M Energy $1.1M Burial $4.6M Total $12.2M

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