Oregon’s three public research universities would be allowed to become public corporations independent of state government under a proposal made Wednesday by Dave Frohnmayer, president of the University of  Oregon until he retired last summer.

He proposed that the legislature take up the idea during its session next February. 

Frohnmayer had been asked by George Pernsteiner, chancellor of the Oregon University System, to study new ways of governing the universities.

His proposal was similar to what happened at Oregon Health & Science University, which became a state-owned corporation in 1995 similar to SAIF, the state insurance company for workers’ compensation. But The Oregonian newspaper reported that since then, the medical school has become deeply indebted and raised tuition to the highest level among U.S. medical schools.

Frohnmayer’s plan would apply to Oregon State, the University of Oregon and Portland State University. He did not mention the regional colleges.

“The demographic data, historical trends, comparisons to other states, and a review of current educational attainment rates all point to a public higher education system in Oregon that is not sustainable,” he wrote in a memo to the chancellor.

Frohnmayer, a former state attorney general and law school dean, proposed legislation, an “enabling act” that would include these elements, among others:

• The State Board of Higher Education would be allowed to create one or more independent public corporations.

• Each such corporation would be run by its own board authorized to oversee operations, set tuition prices and admission standards, and manage its own income and outgo.

• Each school would have authority to borrow money by issuing bonds or, with voter approval, create local taxing districts.

• Each school would be required to meet performance standards set by the statewide higher-ed board.

The proportion of state funding of Oregon universities has dropped over the years. At the UO, President Richard Lariviere told the Democrat-Herald in September it was a mere 9 percent even while tight state management controls were  costing the school unnecessary expense.

Lariviere, as well as OSU President Ed Ray and Chancellor Pernsteiner, have called for a new funding and governance model for the university system.