Good afternoon LCC Community,
Lane Community College has been a cornerstone of education and opportunity for more than 60 years. As we plan for the future, it’s important that we are grounded in facts and transparent about both our opportunities and our challenges.
Recent questions have been raised about whether Lane Community College is truly facing fiscal challenges. The facts are clear and well-documented. The college has not met the Board of Education’s policy requirement for a 10% General Fund Ending Fund Balance since FY2016, when it last reached 15.74%. Years of spending beyond available revenues have steadily eroded reserves, placing the college’s financial stability at risk. Simply put, Lane cannot continue to spend more than it receives.
Drivers of Increasing Costs
The largest financial pressures on the college are personnel costs—specifically, salaries and benefits. Over the past three years, salary costs have grown by an average of 6.52%. Combined with benefits (classified as Other Personnel Expenses or OPE), these personnel-related costs represent approximately 85% of the college’s General Fund budget. This reflects the dedicated employees who are central to Lane’s mission and student success, but it also limits the college’s flexibility when revenues decline. Despite diligent fiscal management, modest tuition adjustments, and temporary vacancy savings, our current rate of spending remains unsustainable.
The General Fund budget is supported by three primary revenue streams: property taxes, the state’s Community College Support Fund (CCSF), and tuition. Property tax revenue is constrained by assessed property values, and CCSF allocations are limited by the amount of state funding available. Tuition revenue, which depends on both the number of credits students take and the tuition rate, is the area where the college has the greatest ability to influence revenue levels.
FY26 Budget Status
At the recent Board of Education meeting, the FY2026 forecast projected that the college will overspend by approximately $550,000. We are working diligently to ensure that the year ends with a balanced budget. The college remains committed to ending the cycle of deficit spending—where annual expenditures exceed annual revenues—and aligning operations with sustainable funding levels.
At the Fall Business Forum on October 28, the Finance and Budget team shared additional updates. In early October, the Higher Education Coordinating Commission (HECC) indicated that Lane’s share of state funding could decrease by up to 5% within the current biennium, representing a potential reduction of roughly $2.4 million per year starting this fiscal year.
We are addressing these challenges with care, transparency, and collaboration. The Finance and Budget team continues to meet with employee groups and departments to share detailed data, answer questions, and incorporate feedback into future budget planning. Questions and responses are being compiled online, and budget messages will continue to be shared as new information becomes available.
Together, by understanding the facts and engaging in open dialogue, we can ensure Lane remains financially stable and mission-focused for years to come.
Part-Time Budget Reduction
I also want to clarify concerns about course schedule adjustments and the part-time faculty budget.
The part-time faculty budget was not reduced this year; it was increased over last year’s allocation.
In recent years, however, it has been overspent by several million dollars annually, which is not sustainable.
The schedule adjustments reflect a targeted effort to align spending with available funds while protecting student pathways.
Each course was reviewed for enrollment, demand, and its role in keeping students on track to completion, graduation, or transfer. Students affected by schedule changes are receiving priority advising. To date, no student has been prevented from completing or graduating on time, and most found suitable alternatives leading to no measurable decrease in overall student FTE. Additionally, administrators will continue to monitor enrollment trends and will adjust sections through strategic course offerings, understanding that the funding will impact other budget areas to ensure the overall budget
Moving Forward
It is natural that we may disagree on how best to allocate the resources we have, especially when every program and position reflects people and priorities we value deeply. Healthy dialogue is an important part of shared governance. At the same time, it’s important to recognize that our Finance and Budget team are the college’s fiscal subject matter experts. Their responsibility is for the only budget at the college required to comply with governmental accounting standards and undergo an annual independent audit to ensure accuracy, compliance, and transparency.
These are difficult but necessary steps to ensure Lane’s long-term stability and to preserve our ability to serve students well into the future. We are making adjustments now, deliberately and thoughtfully, to avoid more disruptive changes later.
Thank you for your continued professionalism and commitment to our students during this important time. Together, we are ensuring Lane remains strong, transparent, and student-centered for the decades ahead.
With appreciation,
Stephanie