State's colleges fail affordability rating.

Byline: Greg Bolt The Register-Guard

Battered by budget cuts and spiraling tuition, Oregon's higher education system has again earned an F in affordability on a national report card issued today by a college advocacy group.

Oregon spends very little to help its residents pay for college, says the report from the National Center for Public Policy and Higher Education. Tuition and other expenses also take a bigger bite out of family incomes than they did two years ago, the report says.

In addition, the state has suffered one of the sharpest drops in the nation in the number of students enrolling in college by age 19, it says.

The Measuring Up 2004 report card grades all 50 states on college preparation, participation and graduation as well as affordability. It also grades the benefits states receive from a college-educated public.

Oregon scored Cs in preparing students for postsecondary education and graduating them on time. It received a B-minus for participation and a B for benefits.

Oregon universities have seen their budgets slashed over the past four years as the state wrestled with a serious recession, forcing schools to sharply raise tuition to maintain quality and keep the doors open. Tuition and fees at the University of Oregon have tripled since 1989, rising to $5,670 this year from $1,845.

So it came as no surprise to education leaders that for the second time in a row the state flunked out on affordability.

"I think one of the biggest problems that we face right now is the fact that a college education at any type of institution in this state is not affordable for a very high percentage of the people who live here," said George Pernsteiner, interim chancellor of the Oregon University System. "That's been a trend that has developed at least through the '90s and it's probably gotten worse in the last couple of years, so it doesn't surprise me at all."

The only grade that improved on Oregon's report card was for participation, which jumped to a B-minus from a previous D-plus. But it wasn't clear why the grade improved, and the report pointed out that the likelihood of an Oregon student enrolling in college by age 19 has fallen to 34 percent from 40 percent in the last report card, one of the steepest drops in the nation.

Also, the report says minority students are losing ground in the struggle to get a college education. Ten years ago, 33 of every 100 minority students in the state enrolled in college; only 27 of 100 now do so.

Oregon isn't alone in its poor affordability rank. Only three states - California, Minnesota and Utah - earned better than a D, and 35 other states also received Fs.

Other states have faced the same kind of financial trouble as Oregon and have followed a similar course by cutting higher education funding and raising tuition. What sets Oregon apart, and puts college out of reach for many residents, is the scant amount that the state spends on financial aid.

Oregon adds only 15 percent to what the federal government provides per student in need-based aid, down from 18 percent two years ago. Ten years ago, the states with the best student aid programs were contributing another 89 percent to the federal grant, according to the Measuring Up report.

"The important point is our tuition isn't that much higher than any other state. What we are terrible at is financial assistance," said Geri Richmond, a chemistry professor at the UO and vice chairwoman of the State Board of Higher Education. "It just kills me to think that the lower number of kids going to college is coupled to that, that they don't see higher education as an option financially."

Also, families in Oregon must pay 34 percent of their income a year on average to put a child through a state university and 29 percent for a community college - amounts that have both increased over the past two years. For low- and middle-income families those percentages jump to 50 percent and 43 percent.

The board, with the support of Gov. Ted Kulongoski, is trying to tackle that problem. Board members support a budget increase for the Oregon Opportunity Grant, the state's primary need-based college grant, and also are asking for $20 million from the 2005 Legislature to hold tuition increases to no more than the growth in the median family income.

Kulongoski and the board also are drawing up plans for a constitutionally protected endowment fund that would offer grants equal to the average state university tuition, now about $4,600, to low- and middle-income families. But it would take more than $2 billion to generate the interest needed for such grants, and finding that much money remains a daunting obstacle.

Oregon still hasn't come out of the recession, and revenue forecasts point to another tough budget session. Still, higher education officials and students plan to push for improved funding in the 2005 Legislature.

"We're hopeful going into the legislative session," said Adam Petkun, a UO political science major and incoming student body president. "We know budgets are tight, and we're not expecting a lot of money to be there, but we're going to work really hard with students to prioritize access to education. And we will mention that the university system got an F in affordability."

MORE INFORMATION

National Center for Public Policy and Higher Education: www.highereducation.org