a A description of the budgetary and allocation processes, including all sources of funding supportive of the instruction, research and service activities This description should include as

appropriate, discussion about legislative appropriations, formula for funds distribution, tuition generation and retention, gifts, grants and contracts, indirect cost recovery, taxes or levies imposed by the university or other entity within the university, and other policies that impact the fiscal resources available to the school.

Resources for the College come from 5 principle sources:

1) an allocation of a portion of the University’s Education and General (E&G) Fund, which is derived mainly from an historic state of Oregon appropriations Resource Allocation Model (RAM), and student tuition revenue;

2) an allocation of E&G dollars generated from entrepreneurial and research-, or service-sponsored projects (e.g. summer session funds derived from tuition, E-Campus incentive funds, international program INTO access funds, and indirect cost recovery from sponsored programs);

3) competitively awarded grant and contract funds supporting scholarly research and service; 4) Statewide Public Services (SWPS) fund directed to OSU Extension 4-H and Family and

Community Health Programs, and a small portion of Agricultural Extension Station fund to support USDA multistate research project activities; and

5) gift funds, including both donations and interest earnings on endowed funds.

Education and General Funds. The Oregon University System (OUS) allocates state funds to each of the 7 OUS institutions in accordance with state legislative directives, Board policies, and agreed upon principles and a historically-established Resource Allocation Model (RAM), which is based on CIP Code. OSU then distributes annual E&G Fund budgets to each college based on 2 sets of calculations. First, the University uses a base budget model to distribute operating budgets for each college at the beginning of each fiscal year, July 1. The allocation of the annual base budget for the Colleges is mostly historic and fixed. Periodic incremental adjustments by the Provost and University Budget Committee have occurred. The Provost also occasionally directs increases in College base budgets to fund strategic priorities, or other initiatives when the state and University budget is healthy. Second, the University allocates additional E&G Fund budget to colleges through an entrepreneurial responsibility centered model based on specific criteria, such as revenue generated from enrollment in summer session courses or the University’s distance learning program.

The tuition for all graduate Master degrees is set and approved by OUS and the University. However, based on market value and enhanced special need for activities (e.g. professional internship, career advising, etc.), an individual professional Master program is allowed to justify tuition increase above the set tuition of all Master degrees. The College has direct control over tuition increases for MPH students and receives all of the incremental tuition generated as an addition to their budget. Returned overhead is distributed to our College based on a percentage of the actual indirect cost recovered by the University as a result of sponsored research activity in our College. OSU negotiates its Facilities and Administration (F&A) rates with the United States Department of Health and Human Services. These rates are currently 26%-47% depending on the type of activity, and our College receives 26% of that as part of its E&G Fund budget. In addition, the University provides access funds to the College with the tuition of the new international program called INTO depending on the number of international students enrolled in our programs. The amount of the access funds is proportional to the numbers of international students registered in the classes offered by the college.

OSU College of Public Health and Human Sciences Page 53 Sponsored Research and Service Project Fund. Federal, state, and local agencies, both public and private competitively award and restrict funds for sponsored research and service projects. Such funds are not part of our College’s day-to-day operating budget. The University negotiates a rate with the federal government for the recovery of some of the indirect costs associated with many of these projects. This returned overhead is reimbursement for expenses the University has already incurred during the course of conducting the sponsored programs. The University returns a portion of the indirect cost recovery to colleges in their Education and General Fund budgets to provide incentives for additional research and to improve research facilities through start-up funds for equipment, etc. The amount allocated to colleges is based on their actual research activity. The OSU Research Office manages the remainder of these funds and uses some of the balance to fund other University research efforts. Statewide Public Services Funds. As a land grant university, OSU receives Federal Smith-Lever appropriations to support its Cooperative Extension programs. In addition, the Oregon legislature appropriates funds to support statewide public service programs, including the OSU Extension Service. The OSU Extension Service, as recipient of these funds, allocates them to various colleges of OSU that operate Extension programs. Two Extension Programs, 4-H Youth Development and Family &

Community Health, have been integrated as part of our College, and these 2 programs provide outreach, engagement, and services in all counties of Oregon. To fulfill the extension mission of healthy youth and family in the communities of Oregon, PHHS receives approximately $6 million annually to support Extension’s Family & Community Health Programs and 4-H Youth Development Programs. In addition, PHHS also receives a small portion of the federal and state funds received by the Oregon Agricultural Experiment Station to support USDA mission directed, multi-state, collaborative research activities in Youth, Family and Community.

Gift Funds. The OSU Foundation coordinates the University’s fundraising and development activities. In 2007 Oregon State University launched the public phase of its first comprehensive capital campaign, The Campaign for OSU with a goal of raising $625 million by 2011. Due to the incredible success of the campaign, the goal was increased to raising $1 billion by the end of 2014. The College’s goal is $33 million that will be split between scholarships and fellowship; capital expenditures; programmatic support; and support for faculty. Donors to The Campaign for OSU may designate that their funds be used for a unique purpose at the discretion of our College. Funds donated to non-endowed OSU Foundation accounts may be expended in their entirety. University policy limits expenses on endowed accounts to the interest earned on those funds. Recent fund raising and development achievements include: $8 million gift from the late Hallie E. Ford. Her gift, matched with state appropriation funds ($5 million), launched the building for the Hallie E. Ford Center for Healthy Children and Families and endowed the center director; $5 million for establishing the Moore Family Center for Whole Grain Foods, Nutrition and Preventive Health which includes the Endowed Director position, 1 Endowed Professor position, and programmatic funds for operations; and $2 million provides for the Jo Anne Leonard Endowed Director for the Center for Healthy Aging Research. We are successful in receiving a total of 10 endowed positions in this OSU campaign. We continue to receive annual funds for

scholarships and fellowships. Gift funds are not annual fixed funding sources, but they enhance the College’s ability to fulfill its mission and goals.

OSU College of Public Health and Human Sciences Page 54 1.6.b. A clearly formulated school budget statement, showing sources of all available funds and

expenditures by major categories, since the last accreditation visit or for the last five years, whichever is longer. The information must be presented in a table format as appropriate to the school..

Table 1.6.b. Sources of Funds and Expenditures by Major Category, FY 2012 and 2013 Source of Funds(Source of data: OSU E&G Budget Book, Section

1/Budget Summary) 2011/12 2012/13

Education & General (E&G) Funds Base Budget based on OUS Resource

Allocation Model (RAM) of state of Oregon appropriations $11,133,201 $10,138,397* Education & General (E&G) Funds entrepreneurial responsibility centered

model (includes summer session, E-campus, INTO, and ICR) $4,199,981 $5,685,781

Grants and Contracts $14,657,425 $15,297,939

State-wide Public Services Funds - OSU Extension Service program (4-H and

Family and Community Health programs combined as PHHS Extension) $5,902,617 $5,974,880 Agricultural Experiment Station fund (based on USDA approved multistate

projects) $277,399 $310,079

Designated Operation Royalties (including Team Oregon, workshops, and

testing services) $2,400,461 $2,468,920

Gift (OSU Foundation) $620,302 $701,653

Others (Auxiliaries) $140,778 $125,400

University Fund (E&G adjustment, Provost faculty hiring initiatives with

start-up fund, operation carrying forward, and other 1-time funding sources) $6,257,148 $4,784,145

Total $45,589,312 $45,487,194

* Reflects the transfer of base budget from the Department of Design and Human Environment to the College of Business

Expenditures (Source of data: OSU FIS data warehouse)

Education & General (E&G) Funds 2011/12 2012/13

Faculty Salaries (Professorial and Professional) $8,367,493 $7,470,758

Staff Salaries (classified) $310,710 $400,757

Graduate Assistant and Student Worker Pay $1,724,282 $1,587,778 Benefits (OPE) (including graduate student

tuition remission) $5,394,226 $5,107,986

Operations and others (including travel, capital

Outlay, and transfers) $2,413,443 $1,971,710

Grants and Contracts $16,165,692 $15,614,644

State-Wide Public Services Funds - OSU Extension Service Programs (4-H

and Family and Community Health combined) $6,257,168 $6,657,175 Agricultural Experimental Station (AES) funds $311,120 $285,153 Designated Operation Royalties (including Team Oregon, workshops, and

testing services) $2,745,256 $2,804,121

Gift (OSU Foundation) $701,653 $628,550

Others (Auxiliaries) $187,688 $140,241

Total $44,578,731 $42,668,873

Some of the important points about OSU’s fiscal situation over the last three years include: OSU remains financially strong thanks to prudent budgeting and financial management, strategic enrollment

management, and enrollment growth. During this period of economic stability at the University, OSU has been able to resume investments in faculty and staff and in facility needs that had been deferred during tough economic times that previously confronted the University. The College’s FY 2011/12 initial base budget from E&G Funds increased 14% over the previous year including additional funding for 2 faculty members and an academic advisor as well as the final installment of a 5-year budget-rebasing plan that was initiated with the 2007 revision of the University’s Strategic Plan. Total payroll expense increased 30% over the previous year while other expenses were up approximately 50%. However, the College’s

OSU College of Public Health and Human Sciences Page 55 FY 2012/13 initial base budget from E&G Funds reflects a decrease of $994,804, which is the transfer of E&G base budget of the Department of Design and Human Environment to the College of Business. Our College continues to support the OMPH Program and has contributed a third of the operating cost since the most recent program accreditation. As part of college committed expenditure, we are committed to support of the OMPH Program until OSU becomes a stand-alone, accredited College of Public Health and Human Sciences and OMPH Program is successfully re-accredited in 2014. This would assure our current OMPH students would continue to be trained under a CEPH accredited program. Our share of the operating cost of the OMPH Program is $83,290 for FY 2011/12 and $95,968 for FY 2012/13.

1.6.c. If the school is a collaborative one sponsored by two or more universities, the budget statement