Although Oregon has not technically adopted its budget yet, SOU President Rick Bailey said he has a pretty clear picture: at least a $3.3 million deficit for the upcoming fiscal year. That's more than the $2.8 million shortfall the university projected last fall.
Bailey blamed the gap on inadequate state support, which he said shifts the financial burden to students.
"It's not complicated," he said. "It's just that, as a state, we have not prioritized public universities in this state to where we need to, and that has a direct effect on our ability to function without a dramatic increase to tuition, and we’re not gonna do that."
SOU increased tuition rates for most students last April.
The university has faced a series of financial crises in recent years. At one point, it projected a $13 million deficit, prompting the the creation of a new fiscal realignment plan two years ago, called SOU Forward.
That plan involved cutting almost 82 positions, mostly by not filling job vacancies, retirements, voluntary departures and non-renewable contracts. Approximately 24 employees were laid off.
But Bailey said it won’t be that easy this time around.
"We don't have as many opportunities like that now. That means that the decisions that we make, almost all of them are going to involve people who would rather not leave," he said. "That's very sobering."
Bailey said that nothing has been decided at this point regarding which cuts will be made. The university will create a plan to fill the budget deficit in the coming months.
"There is no doubt that this news is difficult; however, we have overcome previous challenging times together," Bailey wrote in a recent email to faculty and staff. "Please know that I reaffirm my commitment that every decision we make will reflect our shared love for SOU, each other and our students. When we keep those things as our North Star, there is no obstacle that we cannot overcome."
SOU has also struggled recently with a decline in enrollment, which Bailey said last fall was mainly due to a months-late rollout of the federal financial student aid form known as the FAFSA.
The university's board of trustees is scheduled to meet next Friday to consider a budget for the new fiscal year.
