The recent report commissioned by the Lane Community College Education Association, LCC’s faculty union, paints a picture of the college’s finances that does not align with recent independent audits or financial projections.

First, the suggestion that the college currently has extra money available for large ongoing pay increases is patently false. I sincerely wish that were the case. The independent audit gives us an impartial and reliable informed view of the financial condition of the institution.

It shows much of LCC’s reported net resources are tied up in buildings and long-term capital projects. Those assets have real value, but they cannot be used to pay salaries or operating expenses. Just as owning a home does not provide cash to cover monthly bills, capital assets do not translate into flexible operating dollars. Voters approved capital funding for specific purposes, and by law those funds must be used as promised.

Second, the claim that the Public Employees Retirement System bond created large annual savings that are now cash available to spend is also false. The bond incrementally reduced a long-term unfunded liability, which is important, and a prudent step toward LCC’s long-term financial stability. However, it did not create cash, it merely spent down a debt. The college also continues to make debt service payments related to that bond.

Third, LCC’s financial forecast has been characterized as overly pessimistic. In reality, it functions much like a household budget. It already includes pay increases, benefit costs and reasonable personnel growth of about 6%, reflecting aggregate step increases, cost-of-living adjustments, inflation and filling essential positions. It is based upon actual expenses for current employees.

Last year, for example, faculty received a combined increase of 6.84%, which reflects a step raise of 3.75% and a 3.09% cost of living increase. About half of LCC’s full time faculty are at the top step, which reflects employee longevity and demonstrates LCC provides robust salaries and benefits.

The average full-time faculty wage is nearly $70 per hour before generous vacation, health, retirement and other benefits. Full-time faculty also work 67% of the time that a full-time year-round employee works. The forecast also assumes modest, realistic growth in enrollment and tuition, not optimistic spikes. Planning this way allows the college to keep services stable and avoid midyear cuts — which have occurred the past three years. 

Clarity matters more than ever, as state leaders begin discussions and decision-making based on their understanding of institutional needs across Oregon’s community colleges. Presenting LCC as being in a stronger financial position than is supported by the audited data risks weakening our ability to advocate for the needs of our students, our staff and our community, and to maintain current funding levels and seek increases where possible. 

For context, my professional experience in public-sector finance began in 2001. Since 2004, I have led financial forecasting and managed finance teams for public organizations, including environments as complex or more complex than LCC. That experience shapes how I read audits, evaluate risk and make recommendations to plan responsibly for the future. 

I welcome any opportunity to discuss or clarify the complex financial nuances with community members, staff or students.

Kara Flath is vice president of finance and operations at Lane Community College. She has more than two decades of experience overseeing public-sector budgets, facilities and infrastructure, and has led multimillion-dollar financial and capital programs across higher education and K-12 systems. Her work centers on aligning financial stewardship with organizational mission, equity and long-term community outcomes.