Happy Friday, Raider family,
First, thank you all so much for your patience and faith as we’ve navigated this year’s legislative session. I am pleased to report that the budget reconciliation bill – which includes a funding package for SOU through June 2027 – was approved today by both chambers of the Oregon Legislature and is awaiting the governor’s signature.
Gov. Kotek, legislative leaders, the Higher Education Coordinating Commission and our local legislators – Rep. Pam Marsh and Sen. Jeff Golden – have provided significant support for our university throughout this process, and deserve our sincere thanks.
“Southern Oregon University is clearly an invaluable asset for Ashland, the Rogue Valley and our state,” Rep. Marsh said. “Others recognized that quickly, and then it was just a matter of identifying appropriate short- and long-term solutions.”
The $15 million funding package included in the legislature’s budget bill will help us resolve our short-term cash flow challenge. But our long-term path to fiscal sustainability requires an open-minded evaluation of our programmatic capabilities followed by strict adherence to fiscal guidelines.
Here’s a brief summary of the new legislation and how it will affect the university we love and depend upon:
● House Bill 5024 is a wide-ranging appropriations bill that includes an investment of $15 million in one-time funding to assist SOU with cash flow through the biennium that ends June 30, 2027. The bill also includes a $500,000 appropriation to the Higher Education Coordinating Commission (HECC) to contract with a consultant to help SOU develop a plan for long-term stability.
o We must submit that detailed, long-term operational plan to the HECC by April 30 – less than two months from now. The plan, to be developed collaboratively with the consultant hired by the HECC, must show how we will achieve a balanced budget and fiscal stability for the 2027-29 biennium and beyond.
o SOU will be required to provide monthly financial statements and updated cash flow forecasts beginning in May of this year to the HECC, the Department of Administrative Services and the Legislative Fiscal Office, ensuring that we are accurately predicting our needs, risks and obligations.
● The legislature also passed House Bill 4124, sponsored by Rep. Marsh, which requires the HECC to work with a private consultant to conduct an additional study on the future of higher education in the state. The study will look at all of Oregon’s seven public universities and 17 community colleges to determine potential long-term fiscal sustainability options for the state. A draft report is due to the state in mid-October of this year, with a final report in April 2027 – which will likely have implications for structural considerations and funding priorities of higher education institutions statewide.
While the one-time appropriation for SOU is a very encouraging starting point, you can see that we still have hard work and difficult decision-making ahead of us. We will be working for the next several weeks with the outside consultant – and with input from our shared governance partners and other groups on campus – to identify programs and services that are both regionally responsive and financially sustainable. Our hope is to maintain SOU’s status as an independent university, but the study will also evaluate options that may include some shared services with other institutions. You can expect more information from me next week about how to engage in the process and contribute to this future plan.
I know we will all continue this difficult work with love in our hearts. Our priority at SOU will always be to support the well-being and best interests of our students, and offer meaningful academic and economic benefits for our region and state.
We’ve got this, everyone.
Very Respectfully,
