Oregon Public Broadcasting

Universities in the northwest are feeling the economic downturn.  

The slumping stock market has put a damper on the investments of many schools.  And next year’s state budget in Oregon could contain even more bad news for higher education.  Salem correspondent Chris Lehman reports.

University endowments generate income that funds things like student aid or professor salaries.  

Those investments are losing money as the stock market has taken a hit.  

The University of Washington’s endowment is down 14 percent so far this year.  The Oregon University System endowment dropped 10 percent this year.  

But system Chancellor George Pernsteiner says an even bigger concern is the possible cutback of state funding, which accounts for 20 percent or more of each school’s budget.

George Pernsteiner:  “That will create difficulties much more quickly than endowment earnings, because those are fairly small in comparison.”

University officials should have a better sense of what’s in store for them soon.  That’s because Oregon economists are set to release their latest revenue forecast Wednesday morning.