ASHLAND, Ore. – Southern Oregon University’s Board of Trustees formally acknowledged a consultant’s financial rescue plan and directed the university to create its own sustainability strategy to address a severe budget crisis.
The board’s action comes after the university projected it would run out of operating cash by June 2026. The State of Oregon allocated $15 million in emergency bridge funding through House Bill 5204 to keep the university running through the end of the 2025-2027 biennium.
The emergency funding came with conditions. SOU must work with the Higher Education Coordinating Commission to develop a plan that achieves a balanced budget for the 2027-2029 biennium and long-term structural fiscal balance.
HECC hired Deloitte Consulting to conduct a financial assessment of the university. The consulting firm’s “Option Path to Sustainability” recommends structural budget improvements of approximately $20 million starting in Fiscal Year 2026.
The recommendations would substantially alter the university’s academic offerings, operations, auxiliary units, service delivery and employees. During development of the plan, consultants received input from more than 14 university focus groups and recorded over 750 individual comments from students, employees, trustees and the community through an online feedback tool.
The board acknowledged the Option Path on May 4, 2026, when Deloitte publicly presented the plan to the university community and general public in a webinar. The board held a public listening session the following day.
The board directed University Administration to work with student, faculty and staff representatives to evaluate each component of the Option Path for feasibility. The administration must develop a realistic “SOU Financial Sustainability Plan” that meets the financial objectives through the 2027-2029 biennium and remains sustainable beyond June 30, 2029.
If administrators identify items in the Option Path that cannot or should not be included for legal, fiscal or compliance reasons, or if actions conflict with student support or the university’s mission, the board must be notified within 3 days. The administration must ensure no element of the plan jeopardizes or delays securing the $15 million in emergency bridge funding.
The board also directed the administration to develop a comprehensive Implementation Plan. Both plans must be provided to the board before its June 18, 2026 meeting.
The Implementation Plan must define high-level objectives, establish milestones with discrete tasks and timelines, assign responsibilities, identify key dependencies, address legal and compliance risks with mitigation strategies and set dollar targets with clear tracking of realized benefits. Beginning July 1, 2026, the administration must provide the board with written monthly reports on implementation progress, realized benefits, risks and legal and compliance issues.
The board acknowledged the profound human and community impact of the future structural changes to SOU’s budget. The board determined the actions are necessary to preserve the long-term viability of Southern Oregon University.