Southern Oregon University’s President, Rick Bailey, recently announced a bold plan to tackle a significant financial shortfall. This plan aims to cut $10.5 million over the next few years and includes reducing staff by 64 positions, with around half expected to face layoffs. Additionally, the number of academic majors will go from 38 to 23, and the Native American Studies minor will be eliminated.
Bailey explained that the university has been struggling financially. SOU currently relies on $28 million in state funding, most of which is dedicated to employee retirement and medical benefits. This leaves little room for the university to maneuver its budget, especially with rising costs and declining enrollment.
On June 20, the Board of Trustees directed Bailey to make $5 million in cuts. However, after looking closer, he realized this amount would only solve the immediate budget issue. “If we want to transform, we need to do it seriously,” he emphasized, which led to the larger $10 million cut plan.
Many people have shared their thoughts about changes to the programs, particularly regarding the Native American Studies minor. Some expressed concerns about what this could mean for the representation of Native culture at SOU. In response, Bailey assured attendees that although the minor will end, the university would still offer courses in Native American Studies as part of broader studies in gender, race, and ethnicity.
The financial struggles facing SOU are not unique. Recent data shows that dozens of higher education institutions across the U.S. have merged, been acquired, or closed in recent years. As Bailey pointed out, “More than 60 schools have faced serious challenges in just the last five years.” This trend reflects a broader issue in American higher education, where many schools find it tough to maintain financial stability.
Bailey acknowledged that this moment is tough but necessary. “We need to envision a smaller, more resilient university,” he said. SOU’s goal is not just to survive but to thrive in a challenging financial environment. He noted that past attempts to cut costs—like during the 2010s—have not yielded the desired results and that the current approach is part of a larger shift in how the university operates.
In a recent campus meeting, over 70 pages of feedback from faculty and staff helped guide the provisional plan. Bailey took this feedback seriously, saying, “The things you said shaped this plan.” He emphasized the need for a cultural shift at SOU to better support employees and students alike.
Many in the audience expressed their concerns, highlighting how these cuts might affect staff morale and student access to education. Bailey responded by acknowledging the financial struggles of employees, who have not seen significant pay increases in recent years. “Many have effectively taken a pay cut,” he noted, pointing to cost-of-living adjustments that have not kept pace with inflation.
While change can be uncomfortable, Bailey believes it’s necessary. “Hope is not a strategy,” he said, underscoring the importance of taking proactive steps to maintain SOU’s integrity and future.
As SOU moves forward, it will continue to seek feedback and make adjustments to its plans. The journey to financial recovery is challenging, but with careful decisions and community support, SOU aspires to build a stronger foundation for its future.
For more details, you can review the provisional plan and watch the campus conversation [here](https://www.youtube.com/live/YpSal_jNKuo?si=QSTVteyD_VmmjzGV). Keeping an eye on SOU during this transitional period will provide insight into the evolving landscape of higher education and its challenges.
