Oregon's Emergency Board approved $7.5 million Wednesday to help keep Southern Oregon University operating through the next fiscal year, despite concerns from some lawmakers that the university's financial recovery plan doesn't go far enough.
The emergency funding is the first half of a possible $15 million legislative package for SOU, allocated through the state's Higher Education Coordinating Commission. The remaining $7.5 million could be released this fall.
The Emergency Board, made up of state lawmakers, meets when the Legislature is not in session to approve emergency spending and budget adjustments.
SOU is facing a severe financial crisis after years of declining enrollment and structural budget deficits. University leaders say the funding is needed to stabilize finances while they implement their proposed Vitality Plan, which calls for more than $20 million in cuts.
Not all Emergency Board members were convinced.
Rep. Lucetta Elmer, R-McMinnville, said she had reservations about SOU's proposal.
"I think it’s important that we have these regional colleges," she said. "But it looked like a hope and a prayer in the Vitality Plan. It didn’t look like a sustainable plan."
Rep. Mark Owens, R-Crane, said the university should have acted sooner and questioned the current plan.
"I don't see a clear distinction on what projected enrollment numbers are going to be to see if this even gets them to solvency," he said. "That is my biggest concern."
But many board members supported releasing the funds, with Senate President Rob Wagner, D-Lake Oswego, warning of a broader problem.
"This appropriation, which I strongly support, is a little bit of a canary in a coal mine," he said. "This isn’t just limited to Southern Oregon University. It’s coming to a campus near you."
Other institutions, including Portland State University and Oregon State University, are also struggling with budget shortfalls.
Sen. Fred Girod, R-Stayton, pointed to the lack of state funding. Oregon ranks 46th nationally in state funding per four-year student.
"We don't fund them worth a hoop," he said. "The solution is the 800-pound gorilla in our system, and that's the University of Oregon. You make them take Southern Oregon over and run it as a satellite university."
SOU has already faced multiple fiscal crises in recent years, including cutting $10 million in the fall.
"There's been no lack of effort and no lack of severe belt tightening to this point," Sen. Jeff Golden, D-Ashland, said. "There will need to be more, but SOU does not come merely with its hand out for a bailout."
Board members seemed to agree more work is needed at the state level to address the widespread issue.
"The legislature is going to need to step in," Wagner said. "We're going to have to have some exceedingly brave conversations about the condition of post-secondary education and workforce training in this state, and it's going to look radically different."
Meanwhile, work continues on House Bill 4124, aimed at planning for the future viability of the state's higher education system.
The Emergency Board approved the funding, with Elmer and Owens objecting.
The money comes with conditions. In addition to the Vitality Plan, SOU must submit monthly financial statements and quarterly reports. The Higher Education Coordinating Commission will also update the Emergency Board in September on the university's cash flow and progress.
SOU’s board will meet on Thursday to vote on its proposed Vitality Plan.
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.
