The State Board of Higher Education will pay the outgoing chancellor of Oregon's university system about $180,000 in a severance deal to end his contract two years before it was set to expire.

Richard Jarvis, whose contract with the board extended to July 30, 2006, has resigned effective June 30.

In recent months, Gov. Ted Kulongoski replaced most of the board that hired Jarvis in May 2002. His resignation came amid the new board's effort to shave state funding and responsibility from the university system administration, including $1 million in cuts announced last week. Jarvis said he and board members agreed it was time for him to go.

Oregon Department of Justice attorneys represented the board in negotiations with Jarvis. The settlement amount is an estimate because it is based on a calculation that won't be made until Jarvis' resignation takes effect June 30, said Kevin Neely, spokesman for Attorney General Hardy Myers.

At that point, the settlement calls for Jarvis' salary and benefits for April, May and June to be subtracted from $250,000. The remaining amount, probably about $180,000, will be given to Jarvis in a lump sum. Department of Justice attorneys did not know how much Jarvis would receive in health and retirement benefits through June 30, so they decided to wait to calculate the exact amount until his employment ends, Neely said.

The settlement estimate is less than Jarvis' $224,016 annual compensation -- $190,008 in base salary, plus $14,004 for housing and $20,004 for other expenses.

In exchange for the lump sum, Jarvis agreed to release the board from any legal claims related to his employment. Former Gov. Neil Goldschmidt, the board president, and Geri Richmond, the vice president, agreed to write "amicable and supportive" reference letters for Jarvis, who is a finalist for the presidency of San Jose State University, part of the California State University system.

Goldschmidt has said the board may not begin a search for a new chancellor for six months to a year, or until the board redefines the chancellor's role.