--- kind: section source_pdf: oregon-prosperity-council-report-june-2026.pdf fingerprint: 8ac9aef8ca1b page_range: [339, 340] breadcrumb: ["Appendix E: Submissions & Feedback", "38. Oregon State University — President Murthy Email"] source_links: pdf: "https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339" raw_pages: - "../../.extracted/pages/page-0339.txt" - "../../.extracted/pages/page-0340.txt" --- # 38. Oregon State University — President Murthy Email ## TL;DR *(generated · confidence: high)* Oregon State University President Jayathi Murthy urges the Prosperity Council to designate universities as active economic development partners. OSU proposes three priorities: (1) increase public university funding to improve affordability, noting 85% of personal income tax is paid by degree holders and Oregon ranks 46th nationally in state university investment; (2) create workforce-aligned funding for targeted programs and work-based learning incentives; and (3) strengthen research and innovation through annual University Innovation Research Fund support ($10M/year), extension of the University Venture Development Fund tax credit, and startup funding for the Southern Willamette Valley Innovation Corridor ($1M) and Corvallis Microfluidics Tech Hub ($1M). **Key points** *(each cites a PDF page)*: - OSU contends that approximately 85% of personal income tax revenue is paid by those with bachelor's degrees or higher, directly linking university investment to the state's tax base. ([p. 339](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339)) - Oregon public universities have the highest tuition in the western region due to low state investment (46 in the nation) and higher-than-industry employee benefit costs affecting affordability. ([p. 339](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339)) - OSU proposes creating targeted funding streams for universities to expand capacity in high-demand programs, launch rapid credentialing and reskilling programs, and respond quickly to employer needs. ([p. 339](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339)) - OSU proposes establishing a statewide work-based learning initiative with incentives (grants or tax credits) for employers to provide paid internships, apprenticeships, and cooperative education opportunities. ([p. 339](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339)) - OSU requests at least $10M per year ($20M per biennium) to annually fund the University Innovation Research Fund, which provides matching funds for large federal innovation and economic development grants. ([p. 340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=340)) - OSU requests extension of the University Venture Development Fund tax credit, currently set to sunset December 31, 2027, which supports entrepreneurship programs and commercialization of research. ([p. 340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=340)) - OSU requests $1M in startup and early operational/staffing support for the Southern Willamette Valley Innovation Corridor to have it officially endorsed and launched by the state. ([p. 340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=340)) - OSU requests $1M in bridge funding for the Corvallis Microfluidics Tech Hub, a joint effort of OSU, University of Oregon, and Oregon Health Sciences University focused on commercializing microfluidics technologies for national security goals. ([p. 340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=340)) Amounts: 85% · 46 in the nation · $10M per year ($20M per biennium) · $1M · Dates/FTE: May 13, 2026 · December 31, 2027 · Programs: University Innovation Research Fund · University Venture Development Fund tax credit · Southern Willamette Valley Innovation Corridor · Corvallis Microfluidics Tech Hub · Parties: Oregon State University · Governor Kotek · Jayathi Y. Murthy · Lois Cho > **Source:** PDF [pp. 339-340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339) · raw: [339](../../.extracted/pages/page-0339.txt) · [340](../../.extracted/pages/page-0340.txt) Breadcrumb: Appendix E: Submissions & Feedback > 38. Oregon State University — President Murthy Email --- 5/28/26, 9:24 AM Fwd: OSU and the economic health and prosperity of Oregon - nester@econw.com - ECONorthwest Mail From: Murthy, Jayathi Y Date: Wednesday, 13 May 2026 15:09 To: Lois Cho Cc: Fast, Katie Subject: OSU and the economic health and prosperity of Oregon Dear Lois, I understand that Governor Kotek’s Prosperity Council is coming to the end of its deliberations. As it prepares to release its findings, I thought it would be important to convey to you the strategies that OSU feels would be most beneficial for the economic development of the state of Oregon. First, let me say that the economic health and prosperity of Oregon is critical to the success and future of Oregon State University. OSU not only wants but believes it is critical that we be a coordinated part of Oregon’s economic development strategy. We have observed that states with robust business climates designate universities as active partners. We are eager to assist in development of strategies and/or new business and retention efforts. I list below the strategies that OSU considers to be most important for workforce and economic development: 1. Sustain public university budgets for the benefit of Oregon students Approximately 85% of personal income tax revenue is paid by those with bachelor’s degrees or higher. Affordability is the biggest hindrance facing potential university students. Oregon public universities have the highest tuition in the western region due to low state investment th (46 in the nation) and higher than industry benefits costs. Addressing these challenges will directly impact students’ ability to access a four-year degree. Accordingly, Oregon Should invest in the entire education continuum, including K12, community colleges, and public universities. Assist universities through policies and/or investments to assist with the growing employee benefit costs that are outside of the universities control. 2. Develop workforce-aligned investment pools Industry surveys consistently rank access to a skilled and educated workforce as the top factor in site selection for large, high-wage employers. Therefore, Oregon should Create targeted funding streams for universities to: 1. Expand capacity in high-demand programs 2. Launch rapid credentialing and reskilling programs 3. Respond quickly to employer needs 2. Create a statewide work-based learning initiative be establishing incentives (grants or tax credits) for employers to provide: 1. Paid internships 2. Apprenticeships 3. Cooperative education opportunities 3. Bolster Oregon’s Research and Innovation economy https://mail.google.com/mail/u/2/#inbox/FMfcgzQgMCXPRwcwdXfMbRFdNZfxdsWM 1/2 5/28/26, 9:24 AM Fwd: OSU and the economic health and prosperity of Oregon - nester@econw.com - ECONorthwest Mail The state of Oregon should a. Annually fund the University Innovation Research Fund, which provides matching funds for large federal innovation and economic development grants, with at least $10M per year ($20M for a biennium). b. Extend the December 31, 2027, sunset of the University Venture Development Fund tax credit, which supports entrepreneurship programs, provides opportunities to apply research to commercial activities, and funds efforts to transform novel concepts into products and services. This is how new ideas on campuses become new businesses for the state. c. Provide startup and early operational/staffing support of $1M for the Southern Willamette Valley Innovation Corridor to have the effort officially endorsed and launched by the state. d. Provide bridge funding of $1M for the Corvallis Microfluidics (CorMic) Tech Hub, which is a joint effort between OSU, University of Oregon, and Oregon Health Sciences University and an economic engine that stimulates, drives, and supports the commercialization of microfluidics-connected technologies to meet national security goals. We would be delighted to work with you and the Prosperity Council to help flesh out these ideas further and to help implement them as plans mature. And thank you for all your hard work on the Council on behalf of our state and its communities. Sincerely, Jayathi Jayathi Y. Murthy President Oregon State University | 638 Kerr Administration Building | Corvallis, OR 97331 Executive Assistant: Brad Canfield | brad.canfield@oregonstate.edu https://mail.google.com/mail/u/2/#inbox/FMfcgzQgMCXPRwcwdXfMbRFdNZfxdsWM 2/2 --- Parent: [Appendix E: Submissions & Feedback](./INDEX.md) · PDF: [pp. 339-340](https://www.oregon.gov/gov/Documents/Oregon%20Prosperity%20Council%20Report_June%202026.pdf#page=339)