04-08-2025
Southern Oregon University declares financial exigency, targets $5 million budget reduction
SOU cuts 15 majors and 64 jobs in US higher education budget crisis
Southern Oregon University (SOU) has declared financial exigency as part of a proposed plan to reduce its budget by 15% over a period of three years. The plan, aimed at cutting more than $5 million in expenses in the current fiscal year alone, includes the elimination of more than a dozen academic programmes and approximately 64 full-time employee positions.
The announcement follows a series of financial difficulties faced by the university, attributed to multiple factors including reduced state support, rising operational costs, and recent federal actions under US President Donald Trump's administration, which are expected to reduce funding available to students, as reported by OPB.
Academic programmes and staff reductions
The proposed plan includes the elimination of 15 majors and 11 minors. Among the affected majors are chemistry, ecology, and economics.
The restructuring will also impact a number of interdisciplinary programmes, including the Native American Studies (NAS) minor, which is to be merged with Gender, Sexuality and Women's Studies and Ethnic and Racial Studies.
According to OPB, around 64 full-time employees will be affected by the restructuring. This includes voluntary retirements and positions left unfilled, but approximately 20 employees will face direct job eliminations.
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The proposal targets staff reductions in multiple departments: over 13 full-time equivalent roles from the College of Arts and Humanities, more than eight from the College of Natural and Social Sciences, five from the School of Education, and one from the School of Business.
Declaration of financial exigency and administrative measures
The declaration of financial exigency activates a provision in the faculty union contract, which allows the university to make significant budget-related cuts.
The union has 20 university days to provide feedback on the proposed plan.
SOU President Rick Bailey stated that the measure was essential for institutional transformation. 'It's going to allow us to do the transformative things that we need to do as an institution,' he said, as quoted by OPB. He emphasised that the university was not closing, declaring bankruptcy, or in any imminent danger of doing so.
Bailey has taken a voluntary 20% pay cut.
Earlier in the same week, the president of the union representing service employees offered to reduce their salary by 50%, contingent on equivalent action from the administration, according to OPB.
Previous budget plan and current challenges
The current proposal follows a prior fiscal realignment plan known as SOU Forward, introduced two years ago, which led to the reduction of 82 full-time equivalent positions—approximately 13% of the university's staff.
Bailey admitted during a recent press conference that the earlier savings were not aligned with a well-defined strategic vision, as reported by OPB.
SOU has also faced additional financial pressures due to declining student enrolment, low retention rates, and increased costs for medical and retirement benefits.
Community response and future plans
At a community meeting, strong opposition emerged regarding the proposed changes to the NAS programme.
Lupe Sims, an SOU alumna and White Mountain Apache Tribe descendant, expressed concern over the programme's future. 'This is not just money. This is our culture. This is who we are,' she said, as quoted by OPB.
Bailey concluded the meeting by reaffirming his responsibility for the plan and expressing confidence in the university's long-term prospects, stating, 'Everything that's in this provisional plan I own,' as reported by OPB.
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