Dear campus community,
This week’s news coverage of SOU’s cash-flow gap and our request to reduce expenses have set off an obvious wave of concern. We recognize that many of you are feeling deeply concerned and burdened by this uncertainty. Whether you are a student focused on completing your degree or an employee concerned about professional continuity, the gravity of this moment may weigh heavily on you – as it does on us.
There is erroneous information currently circulating regarding the university’s financial situation and its path to a sound footing. With an issue this significant, it is essential that we provide you with true, accurate and up-to-date facts.
It is correct that the cash flow scenario described to the SOU Board of Trustees during Monday’s special meeting is serious. The scale of this challenge is significant: the university is facing a cash shortfall that threatens our financial stability later in 2026.
As a reminder, we have reached this point because our revenue from enrollment has continued to decline over time, state funding remains insufficient and our operational costs – many of them determined at the state level – have steadily climbed. This has created a structural deficit which, despite our previous efforts, could not be arrested. The situation has been obscured because of one-time funding infusions that masked deficits amid a difficult Workday transition, among other factors.
To address this deficit immediately, the university has implemented protective measures that include hiring and travel freezes, limits on services and supplies spending, and an evaluation of how to best leverage current one-time funds.
Our goal is to preserve SOU's core mission and remain a strong, independent university that prepares students for fulfilling careers and meets the workforce, economic and cultural needs of our region. And we won’t give up.
To this end, several members of the Board of Trustees and the university leadership team have been working around the clock in Salem with the governor’s office and legislative leaders to alert them to SOU’s situation and to pave the way for an ask of additional funding, should it be required. We are reminding the state that SOU is vital to this region and an essential public asset that we simply cannot allow to falter.
We also want to address rumors regarding potential mergers with another institution. Let us be clear: We are not pursuing a merger. Our intention is to maintain SOU as an independent, public regional university. While the state legislature and Higher Education Coordinating Commission have discussed consolidation or targeted integration as broad policy tools, these discussions do not reflect the strategic direction of our Board of Trustees, this administration or our commitment to maintaining SOU’s autonomy.
The Board of Trustees and the university administration are committed to transparency. We will work in the coming days and weeks with SOU’s shared governance partners, whose thoughts and collaboration are essential as the campus works through this process. We need your help to do this important work for SOU.
● If you have thoughts or ideas to share with us, please use this form.
● If you would like to support our work in Salem and advocate for a better future for SOU’s students and community, become a Raider Advocate here.
Additionally, a campus conversation is scheduled for 12:30 p.m. tomorrow – Friday, February 6 – in the Rogue River Room, with a livestream option at SOU's YouTube channel.
Success won’t be easy, but we can promise this: We are committed to the hard work required to see SOU through. Our care and love for the campus community will energize our fight to preserve SOU students’ ability to fulfill their academic goals. This university has a long history of meeting challenges with resilience, and together, we will move forward.
Sincerely,
Sheila Clough Rick Bailey
Chair, Board of Trustees SOU President
