SOU enacts spending restrictions amid cash-flow concerns
(Ashland, Ore.) — Southern Oregon University President Rick Bailey enacted immediate spending restrictions today and asked all faculty and staff members to focus on savings, following an often difficult discussion with the SOU Board of Trustees on Monday about a cash-flow shortage that is expected to exist until downsizing measures adopted as part of last summer’s Resiliency Plan take full effect in about two years.
President Bailey and other SOU leaders are exploring all options to keep the university in a healthy fiscal position beyond the summer of 2026, and into 2027, when Resiliency Plan measures and a potential statewide reevaluation of higher education funding may provide relief. The president is in Salem today to meet with lawmakers ahead of this month’s short session of the Oregon Legislature, signaling to state leaders that in addition to everything the university is engaged in to play its role, state support will likely be required in the latter part of the 2025-2027 biennium.
“Even as we move through the SOU Resiliency Plan, and fight together to lean into our future, cash flow challenges will put us in a precarious position later this fiscal year and into next year,” President Bailey said in a message to employees. “We ask you to help us in the short term to be ever more vigilant regarding expenses.”
Immediate spending restrictions at the university include:
- A hiring freeze, with approval by the supervising vice president required for any exceptions;
- Travel restrictions, with approval of exceptions required by each employee’s supervising vice president;
- Cuts to expenditures for services and supplies, with a supervisor’s pre-approval needed for any spending over $1,000;
- Reductions in continuing education and professional development allowances, where possible.
The gap in cash flow became apparent in the university’s latest financial modeling and was discussed in a series of leader meetings over the past several days, culminating in President Bailey bringing the issue to the Board of Trustees yesterday. SOU is the first of Oregon’s seven public universities to be faced with a cash-flow shortfall, but all are on a similar trajectory due to persistent underfunding from the state. A recent analysis from the state’s Higher Education Coordinating Commission said that the cash balances for all seven universities will be in the red by 2030.
Oregon currently spends $8,600 per student to support public higher education at the state’s universities and community colleges. That ranks 37th in the nation and is $3,000 per student below the national average. Oregon’s per-student support for just its universities ranks 46th in the nation.
President Bailey also pointed out that SOU is already “far, far more efficient” than the national average for public universities, regarding student-to-staff and student-to-faculty ratios, following its SOU Forward and Resiliency Plan cost-cutting and restructuring initiatives of 2023 and 2025. All of Oregon’s public universities have undertaken some reorganizational or austerity measures in recent years.
“Oregon’s universities have done so much that we are strained to the breaking point,” President Bailey said. But he also shared with the campus community that they will continue to fight for the university that we all love and deserve.
The president will be available to answer questions during a news conference at 2:15 p.m. today on Zoom.
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About Southern Oregon University
Southern Oregon University is a medium-sized campus that provides comprehensive educational opportunities with a strong focus on student success and intellectual creativity. Located in vibrant Ashland, Oregon, SOU remains committed to diversity and inclusion for all students on its environmentally sustainable campus. Connected learning programs taught by a host of exceptional faculty provide quality, innovative experiences for students. Visit sou.edu.
