Lane Community College (LCC) disclosed a significant budget challenge at its Board of Education meeting on Wednesday, Nov. 4. A rise in payments to Oregon’s Public Employees Retirement System (PERS) is expected to create a $3.5 million hole in the college’s 2027‑28 budget, while tuition revenue is projected to fall about $1 million because students are enrolling in fewer credits.
Financial picture for the upcoming year
Vice President of Finance and Operations Kara Flath and Senior Director of Budget, Grants and Resource Planning Jonathon Campbell said the college’s revenue this academic year is already about $1 million below the original budget. The shortfall stems mainly from lower credit loads, which reduce per‑student tuition dollars.
Spending is also running over budget by roughly $400,000, driven largely by increased salaries. LCC is in the first year of a three‑year plan to trim about $8 million in spending and raise its ending fund balances to 10 percent of the general fund, which this year is budgeted at roughly $105 million.
Pension liability adds to the gap
Looking ahead to the 2027‑28 academic year, the college expects to pay $3.5 million more in PERS rates than originally anticipated. The increase is tied to the expiration of a side account that allowed LCC to make a lump‑sum payment to pre‑pay part of its pension liability. With that account ending, the college must resume higher regular contributions.
Combined with the college’s own plan to cut $3 million in spending next year, the pension increase pushes the projected budget gap to more than $6 million.
Employee separation incentives
In response, LCC announced last month that it will offer “separation incentives” to long‑time classified employees and faculty who volunteer to leave. Vice President of Human Resources and Labor Relations Shane Turner cautioned that the college does not want to lose too many staff members, as that could impair operations, but it does need enough voluntary departures to achieve meaningful savings without the disruption of involuntary layoffs.
Eligible employees must decide whether to accept the offer by the end of November, according to the college’s communications.
Board evaluation of President Bulger
During the same meeting, Board Chair Jesse Maldonado read a public‑facing evaluation of President Stephanie Bulger’s performance for the 2025‑26 academic year. The evaluation highlighted progress on fiscal stability, external partnerships, enrollment growth, and student‑success initiatives, while noting a continued need to focus on institutional climate, employee engagement, labor relations, and equity‑cap reduction.
In February, the board approved a new three‑year contract for Bulger, raising her base salary to $289,671.17 – an increase of about 10.5 percent.
Legislative advocacy plans
Senior Adviser for Strategic Communications Jenna McCulley presented a draft “Legislative Advocacy Platform” for the 2027 Oregon legislative session. The plan calls for LCC and other community colleges to push for adequate state funding, including additional resources for the Community College Support Fund and a funding formula that counts headcount rather than just full‑time‑equivalent students – a key issue for LCC as students take fewer credits.
Other legislative priorities include expanding student access and affordability, strengthening workforce development, investing in facilities and technology, preserving local control, and ensuring safe learning environments.
Next steps
Campus workgroups are meeting to identify additional potential budget cuts, while Flath and Campbell said discussions are also underway about ways to increase revenue. No specific number of expected buyouts or projected savings was disclosed at the meeting.
The board will continue to monitor the financial outlook and will consider further actions as the 2027‑28 budget cycle progresses.
Original reporting: Homepage – Lookout Eugene-Springfield — read the source article.
