SOU Emergency Funding Request Moves to HECC
State higher education officials are considering a request to release up to $15 million to help Southern Oregon University remain solvent through fiscal year 2027.
ASHLAND, Ore. – The Oregon Higher Education Coordinating Commission is considering a request to move forward with up to $15 million in emergency state funding for Southern Oregon University as the university faces a major financial shortfall and pressure to develop a long-term sustainability plan.
The HECC action item, scheduled for Thursday, May 7, asks the commission to authorize staff to work with the Governor’s Office and Oregon’s Chief Financial Office to prepare and submit a request to the Legislature’s Joint Emergency Board.
The Emergency Board is scheduled to meet June 17 and may consider releasing up to $15 million in funding to HECC for SOU operating support.
According to HECC staff, SOU identified an approximately $15 million shortfall in early February in the funding needed to meet projected operating expenses during fiscal year 2027. The Legislature later adopted HB 5204, which included a $15 million special purpose appropriation to the Emergency Board to address the issue.
The funding is not automatic. A budget report tied to HB 5204 requires HECC to submit updated financial modeling and a plan for SOU to maintain operations through June 30, 2027.
HECC staff said four separate outside teams of budget and accounting experts have reviewed SOU’s financial data and fiscal plans for fiscal year 2027. Each team concluded the university needs approximately $15 million to remain solvent through that period.
The emergency funding request comes as SOU is also under pressure to create a longer-term plan for higher education in Southern Oregon without relying on ongoing increases in state support.
A separate HB 5204 budget note calls for SOU and HECC to develop a plan that aligns revenue and spending to reach a balanced budget for the 2027-29 biennium and long-term structural financial stability.
HECC contracted with Deloitte Consulting to help develop that plan. Deloitte presented preliminary recommendations to the SOU Board of Trustees on April 28, and its full report was released May 4. The SOU Board is expected to consider its response during a special meeting May 8.
Ashland.news reported that the Deloitte report could inform SOU’s path forward, with possible cuts of up to $20 million. The outlet also reported that community members are rallying against many of the proposed reductions, including potential impacts to faculty, staff and programs such as Music, International Studies, Gender, Sexuality & Women’s Studies and Creative Writing.
No final action has been taken on those cuts.
Ashland.news also reported that nearly 230 people attended a town hall at the Medford Library on Wednesday evening in support of the university. SOU student and HECC student member Demetrus Davis-Boucher reportedly said during the meeting that he intended to vote yes on the HECC action item.
The HECC item does not itself finalize SOU’s restructuring plan or release the money. Instead, it would allow HECC staff to move the emergency funding request forward for consideration by the Joint Emergency Board in June.
HECC staff recommend approval, saying SOU requires the $15 million to meet fiscal year 2027 obligations and that a longer-term sustainability plan has been developed.
Cover image: Southern Oregon University.
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