University of Oregon 2019 Annual Financial Report
Management's Discussion and Analysis
For the Year Ended June 30, 2019 (dollars in thousands)
Accumulated depreciation at June 30, 2019, increased
$59,905, or 7 percent, which represented $65,554 in
depreciation and amortization expense offset by $5,649
in asset retirements and adjustments. Accumulated
depreciation at June 30, 2018, increased $50,664, or
7 percent, which represented $65,351 in depreciation
and amortization expense offset by $14,688 in asset
retirements and adjustments.
See Note 6. Capital Assets for additional information.
Capital Commitments
Outstanding commitments on construction projects
that are in the planning phase but not yet initiated,
as well as partially-completed construction projects
authorized by the Oregon legislature and/or the Board
of Trustees totaled approximately $228,448 and
$313,995, at June 30, 2019 and 2018, respectively.
See Note 16. Commitments and Contingent Liabilities
for additional information relating to capital
construction commitments.
Debt Administration
No new revenue bonds were issued in 2019.
During fiscal year 2018, the UO received $70,693
due to the issuance of revenue bonds, for which
the Moody's bond rating was Aa2. The proceeds of
the issuance were earmarked for construction and
acquisition of capital assets.
Long-Term Debt
$800
$600
$400
$200
2019
2018
2017
Capital Leases
PERS Pre-SLGRP Pooled
Liability
Oregon Department of
Energy Loans
UO Revenue Bonds
premiums/discounts.
UO Revenue Bonds
State Note Payable
See Note 10. Long-Term Liabilities for additional
information.
Economic Outlook
Funding for the major activities of the University of
Oregon comes from a variety of sources, including
tuition and fees, financial aid programs, state
appropriations, grants, private and government
contracts, donor gifts, and investment earnings.
Revenues are also generated through recovery of costs
associated with federal grants and contract activities,
which serve to offset related administrative and
facilities costs.
According to the Oregon Office of Economic Analysis,
Oregon has experienced substantial economic
expansion over the last decade. While the economic
outlook remains stable, uncertainty about the
performance of the national economy will likely mean
a slower growth rate in coming years. From fiscal
years 2015 to 2017, the State of Oregon substantially
increased investment in public universities, moving
the state's ranking of educational appropriations per
student from 47th to 38th in the nation. The 2019
legislative session saw a continuation of this trend,
with an increased investment in the Public University
Support Fund of $100 million. These funds ensured
that previously-proposed large resident tuition
increases at the UO were partially mitigated for the
2018-19 academic year, but were not enough to avoid
budget cuts and tuition increases altogether.
The UO is still recovering from more than two decades of
underinvestment in Oregon public higher education and
continues to face large cost drivers outside of its control.
This has created challenges in fully achieving the UO's
mission of excellence in access, academia, research, and
service. The UO will continue to work collaboratively
with other universities, lawmakers, and the Higher
Education Coordinating Commission (HECC) to advocate
for additional funding for public universities. The HECC,
with input from the universities, will also be reviewing
the funding formula by which Public University Support
funds are distributed.
Construction on the Phil & Penny Knight Campus for
Accelerating Scientific Impact continues on budget
and on time. Move-in is anticipated for June, 2020.
This new building is projected to ultimately house at
least twelve research programs led by faculty newly
recruited to the UO in bioengineering and applied
sciences. Additionally, the Knight Campus has joined
with Oregon Health & Science University (OHSU)
on a new Biomedical Engineering Graduate Program,
and with Oregon State University (OSU) on a new
Bioengineering Graduate Program.
14 University of OregonView entire presentation