Southern Oregon University
Southern Oregon University

Southern Oregon University (SOU) has declared financial exigency in a dramatic effort to address one of the most severe budget crises in its history. The move, announced in early August 2025, is part of a multi-year provisional plan to reduce university expenditures by 15%—over $10 million—across a three-year period, with more than $5 million in cuts set for the current fiscal year alone.

Academic Programs Slashed

As a result, SOU will eliminate 15 academic majors, including high-profile disciplines such as chemistry, ecology, and economics, along with 11 minors. In total, the university's offerings will shrink from 38 to 23 majors, and minors from 35 to 24. Among the most controversial moves is the merging of the Native American Studies minor with Gender, Sexuality and Women's Studies and Ethnic and Racial Studies—a change that has faced strong community resistance.

Growing Staff Reductions

The plan also entails eliminating approximately 64 full-time equivalent positions. While some reductions will come from unfilled vacancies and voluntary retirements, about 20 current employees are expected to lose their jobs outright. The College of Arts and Humanities faces the largest cuts (13+ FTEs), followed by the Colleges of Natural and Social Sciences, the School of Education, and the School of Business.

Root Causes: Declining Support and Rising Costs

SOU's leadership points to a combination of declining state support, rising operational and healthcare costs, and recent federal policy changes under the Trump administration, which further limit funding for students. Other compounding factors include ongoing enrollment declines and low retention rates. The university previously tried to correct course with its "SOU Forward" fiscal realignment plan, which reduced 82 positions two years ago, but leaders admit those savings were not strategically targeted.

Administrative Sacrifices and Outlook

President Rick Bailey has taken a voluntary 20% pay cut as a sign of commitment, even as he emphasized that the university is not closing, filing for bankruptcy, or in any immediate danger of doing so. He notes that these measures are intended to position SOU for a more sustainable future. The faculty union now has 20 university days to respond to the provisional plan, and community engagement is ongoing, especially regarding the impact on cultural and interdisciplinary programs.

Bailey concluded a recent campus meeting by expressing both responsibility for the plan and hope for SOU's long-term prospects, stating, "Everything that's in this provisional plan I own...There is a future that is better for us, and it's ahead of us. We can do this."