This story will be updated after a university press conference at 10 a.m. on Wednesday.
Southern Oregon University could run out of cash within 18 months without sweeping cuts and structural changes, according to a preliminary report presented Tuesday night to the Board of Trustees.
Consultants from Deloitte said the university must move quickly to close a growing deficit through academic program cuts, outsourcing and other cost-saving measures — or risk winding down operations.
Even with $15 million in emergency funding from the state, the university is currently operating with a $12.5 million deficit, which is predicted to increase to almost $17 million by fiscal year 2030.
Megan Cluver with Deloitte said the university should aim to maintain at least 120 days of cash on hand to be viable. Without changes, SOU is projected to have just two days of cash on hand at the end of fiscal year 2027.
Deloitte's preliminary recommendations include outsourcing administrative services, possibly changing health insurance providers and major cuts to faculty, staff and athletics — all on a very short timeline.
The plan also proposes spinning off Jefferson Public Radio from the university, which consultants estimate could save about $300,000 annually. The report does not provide details on what that would entail.
Cluver said the proposed plan is the only option for the university, but it could still fall short.
"There are not many viable options for the institution, short of realizing this incredibly challenging path, other than to wind down the institution," she said.
Cluver said the university must also overhaul its academic offerings to better align with student demand and regional workforce needs.
"We need to fundamentally change the set of academic programs that you are offering today in order to get you to a balanced budget by the end of the next fiscal year," she said.
This is the latest in a period of recent turmoil for SOU. In 2023, the university cut more than 80 full-time-equivalent positions. Trustees then approved an additional plan in September 2025 to cut more than $10 million over four years.
SOU is not alone in its financial situation. Cluver cited pressures facing higher education across the country, including shifts in federal funding and fewer students going to college.
One trustee asked Tuesday about the possibility of a merger or acquisition, but Cluver was blunt.
"The university is not a particularly attractive acquisition target for a larger university," she said.
The tight timeline also limits the university's ability to pursue longer-term revenue strategies, Cluver said.
The plan is not final. Deloitte is expected to release a full report Monday, and SOU’s Board of Trustees is scheduled to vote on it next Friday.
The changes would need to be completed by June 2027.
Nevertheless, Cluver said there is "real reason for hope," a sentiment SOU President Rick Bailey echoed.
"We are caretakers of this institution, and we owe it not just to each other but to generations of students, faculty and staff who come after us to do everything that we can so that we give them a chance to help preserve this institution into the future," he said.
JPR is licensed to Southern Oregon University, but our newsroom operates independently. Guided by our journalistic standards and ethics, we cover the university like any other organization in the region. No university official reviewed or edited this story before it was published.
