Southern Oregon Weighs Deep Cuts

"Southern Oregon University is in survival mode. Last summer officials at the public regional university with about 5,000 students declared financial exigency, a move that came on the heels of other cuts in past years amid declining revenue and rising operating costs. But now trustees are weighing a plan to enact deep cuts as the university looks to meet a state mandate to balance its budget by June 2027."

"While the state stepped in to approve $15 million in emergency funding, legislators put strings on those dollars. In addition to the balanced budget requirement, a state budget provision calls on Southern Oregon to "develop a plan for future delivery of higher education ... without reliance on ongoing increases in state support.""

"Deloitte has warned that without changes, SOU could close. Consultants wrote in a draft document the university may need to consider alternative plans, including "a controlled winddown," if "milestones are not hit." The plan calls for eliminating four programs: music; international studies; sender, sexuality and women's studies; and creative writing. Consultants also recommend consolidating nine other programs."

"With the vast majority of SOU's enrollment (78 percent) concentrated in just 10 programs, according to the report, cuts and consolidation will directly affect 382 students. The report does not specify how many jobs will be cut, but a preliminary plan from Deloitte called for $7 million to $8 million in cuts to academic units. Of those projected savings, 70 percent would be generated by reductions in faculty ranks and another 30 percent from staff cuts."

Southern Oregon University is operating under financial exigency after prior cuts amid declining revenue and rising operating costs. Trustees are considering deep reductions to meet a state requirement to balance the budget by June 2027 and to plan future higher education delivery without relying on ongoing increases in state support. The state approved $15 million in emergency funding with conditions attached. The university projects a $12.5 million deficit that is expected to worsen. Deloitte was hired to identify savings and new revenue through “The Path Forward,” targeting up to $20 million. Deloitte warned that without changes, the university could close and may need a controlled winddown if milestones are missed. The plan includes eliminating four programs and consolidating nine others, affecting 382 students, with most savings tied to faculty and staff reductions.

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