Budget Reducing Measures for Next Fiscal Year Announced

CORVALLIS -- Oregon State University Athletics has announced a series of budget-reducing measures for the 2021 fiscal year, with the aim of lessening the financial impact of the COVID-19 global pandemic, OSU Vice President and Director of Athletics Scott Barnes announced Wednesday.

"Across the world, we all are dealing with unprecedented challenges, which are requiring unprecedented and difficult decisions," Barnes said. "This is also true within OSU Athletics. Based on our current scenario planning, we have budget models that range from a shortfall of $8 million and up for the upcoming fiscal year. We have begun the process of identifying all the mitigation strategies that must take place. Please understand that none of these decisions are easy but are necessary to be fiscally responsible."

Revenue shortfall mitigation strategies for FY21 include:

Operating budget reductions of 7-20%
Salary reductions to be made within University guidelines
Hiring and salary freeze in keeping with university guidelines
Reduction of 23 positions via non renewals/layoffs, retirement, and selective hiring freeze on open positions

"The personnel decisions we have made are exceptionally difficult because we will have to move forward without many great people who have contributed in major ways to the success of the university, student-athlete success and the department," Barnes said. "It's a decision no leader wants to make. I thank each of these colleagues for their service and commitment to our student-athletes and OSU Athletics."

Barnes said the budget reduction measures will help OSU Athletics achieve its goal of mitigating projected revenue shortfalls. Other future actions in alignment with the university may be needed, as the financial picture for the upcoming year becomes clearer, he said.

"We will continue the process of identifying all the necessary mitigation strategies," Barnes said, "None of these decisions will be easy.

"Though the impacts of COVID-19 present a broad challenge for all of the Beaver Nation, I remain very positive about the outlook for OSU Athletics.

"The short-term financial realities are difficult, but I remain optimistic about the long term future of Oregon State Athletics," Barnes said. "I appreciate our incredibly loyal fans for their understanding, and thank them for their continued support as we navigate these difficult waters."

Those interested in supporting OSU Athletics are encouraged to give to the Beavers Care program launched by the OSU Foundation. Gifts will go directly to support the scholarships of student-athletes whose competitive seasons have been affected by COVID-19.

Budget Reducing Measures for Next Fiscal Year Announced

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