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CORVALLIS - Oregon State University officials identified 34 positions that will be eliminated because of a previously projected shortfall in OSU's Education and General budget for fiscal year 2001-02. The employees affected by the layoffs were notified this week.

The reduction will save approximately $2 million in salaries, benefits and other expenses, OSU officials say. The 34 positions reflect less than 1 percent of the overall workforce at the university. Twenty-seven of the eliminated positions are classified staff members; seven are unclassified.

An additional estimated 120 open positions are not being filled this fiscal year, which is helping reduce the shortfall by approximately $5.36 million, said Mark McCambridge, vice president for finance and administration. "We also have heard from several employees who have indicated their plans for voluntary retirement during the biennium," he said.

McCambridge said OSU's Office of Human Resources is working with the affected employees.

While McCambridge is confident that the number of employees who lose their jobs through the fiscal year 2001-02 reductions will eventually be less than 34, it may take some time for the policy- and contract-driven processes to be completed.

The workforce reduction, combined with spending cuts and other savings initiatives, have resulted in a balanced budget for the university for the 2001-02 fiscal year. During the next several months, the university will work to develop a balanced budget for the next fiscal year that begins July 1, 2002.

Among the factors that will influence that budget is the special legislative session, scheduled to begin in early February.