Path to Fiscal Sustainability

PATH TO FISCAL SUSTAINABILITY

Collaborative process for 쮸떴눈첵 to sustain its presence and impact for students and the region

Background

Structural defects in 쮸떴눈첵�셲 day-to-day and year-to-year funding formula have been apparent for the past several years, and the university took aggressive action to address those problems with its and Resiliency Plan cost-cutting and restructuring initiatives of 2023 and 2025. However, the depth of those underlying structural flaws �� which had been obscured by a combination of one-time funding infusions, a difficult Workday transition and other factors �� became apparent through a new round of financial modeling early this year.

Fundamentally, 쮸떴눈첵�셲 ongoing financial challenges are the same as those facing all eight of Oregon�셲 public universities: revenue from enrollment has continued to decline over time, state funding remains insufficient and operational costs �� many of them determined at the state level �� have steadily climbed. But 쮸떴눈첵�셲 immediate issue is acute �� its most recent cash-flow projections anticipated financial insolvency later in 2026.

쮸떴눈첵 took immediate steps, implementing protective measures such as hiring and travel freezes, limits on services and supplies spending, and an evaluation of how to best leverage current one-time funds. But much more substantial action was required, and the governor, legislative leaders, the Higher Education Coordinating Commission and local legislators acknowledged 쮸떴눈첵�셲 regional and statewide importance by pushing a one-time appropriation through the Oregon Legislature�셲 2026 short session that will resolve short-term cash-flow issues through June 2027.

That legislation also included an appropriation to the HECC, to contract with a consultant and help 쮸떴눈첵 develop a plan for long-term stability, through the 2027-29 biennium and beyond. Deloitte Consulting LLC, a global consulting firm with substantial experience in higher education, has been hired to collaborate with 쮸떴눈첵, the HECC and others on that detailed, long-term operational plan that must be completed by April 30.

In Partnership with Deloitte Consulting LLP

The charge of Deloitte is to, �쐁onduct a strategic and financial assessment to help the Higher Education Coordinating Commission (HECC) and 쮸떴눈첵 (쮸떴눈첵) establish a fact-based, decision-ready path forward given 쮸떴눈첵�셲 forecasted negative cash balance by spring 2027. Deloitte will work with HECC and 쮸떴눈첵 to develop a long-term structural financial model, including scenarios, key assumptions, and sensitivity analyses, to define a practical path to a balanced budget consistent with legislative direction. In parallel, Deloitte will assess 쮸떴눈첵 programs and functions that are �쐓pecifically meaningful to southern Oregon or the state,�� evaluating sustainability and mission alignment and assisting HECC and 쮸떴눈첵 in their efforts to identify activities that may be preserved, consolidated, restructured, or discontinued to support long-term delivery capacity.

Deloitte will conduct an initial evaluation of how 쮸떴눈첵 can sustainably support higher education needs in Oregon, and specifically in the 쮸떴눈첵 Oregon region. Deloitte will consider whether 쮸떴눈첵 can accomplish this goal as an independent, stand-alone institution, and will also consider alternative structures and partnership pathways. This analysis will be completed in collaboration with the 쮸떴눈첵 board and staff, HECC staff and, as appropriate, other Oregon higher education institutions. Deloitte will compare operational models and provide an initial view of feasibility informed by the financial model and program sustainability results, as determined by HECC and 쮸떴눈첵.��

Engage with Deloitte Consulting

Deloitte held six facilitated focus groups of about 10 to 12 individuals per group that include:혻 1) Students; 2) Faculty; 3) Staff; 4) Directors and Chairs; 5) Cabinet+ and Deans; and 6) Community.혻 Interviews with key stakeholders and focus groups were held the weeks of March 16 and 23, both virtually and in-person. Please know that we are still actively seeking input and you can provide input through your shared governance representatives: Faculty Senate, Staff Assembly, or AS쮸떴눈첵 and directly though the .

If you can be involved and are an on-campus community member, please work with the Faculty Senate, Staff Assembly or AS쮸떴눈첵 all of which will engage with the Executive and Project Team on a weekly basis.혻

View the Full Scope of Work

Feedback

The data submitted in this feedback form will be sent directly to Deloitte Consulting to inform their work. Your responses will be kept confidential and reported only in aggregate, with no individual responses attributed to you. All constituencies are welcome to share thoughts: Students, Staff, Faculty, Donors, Alumni, Community Members, Government leaders etc.혻

Campus Messages

Frequently Asked Questions

How can I get involved in this process?

Deloitte is planning to host six facilitated focus groups of about 10 to 12 individuals per group that include:혻 1) Students; 2) Faculty; 3) Staff; 4) Directors and Chairs; 5) Cabinet+ and Deans; and 6) Community. These groups will serve as conduits for your thoughts and ideas as we all help to identify future programs and services that are regionally responsive and financially sustainable. Interviews with key stakeholders and focus groups will be held the weeks of March 16 and 23, both virtually and in-person.

If you can be involved, please engage with the , or , each of which will engage with the Executive and Project Team on a weekly basis.혻

The Executive Team expects to complete a draft of our long-term financial model by early April; finish an assessment of programs and functions, and report on structural options, by the middle of April; and then submit the Deloitte plan to the HECC and our Board of Trustees by April 30.

Who is Deloitte Consulting, LLP?

Learn more about Deloitte Higher Education Consulting

What are the objectives and work that Deloitte will be doing with 쮸떴눈첵?

The charge of Deloitte is to, �쐁onduct a strategic and financial assessment to help the Higher Education Coordinating Commission (HECC) and 쮸떴눈첵 (쮸떴눈첵) establish a fact-based, decision-ready path forward given 쮸떴눈첵�셲 forecasted negative cash balance by spring 2027. Deloitte will work with HECC and 쮸떴눈첵 to develop a long-term structural financial model, including scenarios, key assumptions and sensitivity analyses, to define a practical path to a balanced budget consistent with legislative direction. In parallel, Deloitte will assess 쮸떴눈첵 programs and functions that are �쁲pecifically meaningful to southern Oregon or the state,�� evaluating sustainability and mission alignment and assisting HECC and 쮸떴눈첵 in their efforts to identify activities that may be preserved, consolidated, restructured or discontinued to support long-term delivery capacity.

�쏡eloitte will conduct an initial evaluation of how 쮸떴눈첵 can sustainably support higher education needs in Oregon, and specifically in the southern Oregon region. Deloitte will consider whether 쮸떴눈첵 can accomplish this goal as an independent, stand-alone institution, and will also consider alternative structures and partnership pathways. This analysis will be completed in collaboration with the 쮸떴눈첵 board and staff, HECC staff and, as appropriate, other Oregon higher education institutions. Deloitte will compare operational models and provide an initial view of feasibility informed by the financial model and program sustainability results, as determined by HECC and 쮸떴눈첵.��

View the Full Scope of Work

Resources

Overview on Applicable and Related Legislation

is a wide-ranging appropriations bill that includes a $15 million investment in one-time funding to assist 쮸떴눈첵 with cash flow through the biennium ending June 30, 2027. The bill also includes a $500,000 appropriation to the Higher Education Coordinating Commission (HECC) to contract with a consultant to help 쮸떴눈첵 develop a long-term stability plan.

1. 쮸떴눈첵 must submit a detailed, long-term operational plan to the HECC by April 30. The plan, to be developed collaboratively with the consultant hired by the HECC, must show how 쮸떴눈첵 will achieve a balanced budget and fiscal stability for the 2027-29 biennium and beyond.
2. 쮸떴눈첵 will be required to provide monthly financial statements and updated cash flow forecasts beginning in May of this year to the HECC, the Department of Administrative Services, and the Legislative Fiscal Office, ensuring that needs are accurately being predicted.

, sponsored by Rep. Marsh, requires the HECC to work with a private consultant to conduct an additional study on the future of higher education in the state. The study will examine all of Oregon�셲 seven public universities and 17 community colleges to identify potential long-term fiscal sustainability options for the state. A draft report is due to the state in mid-October of this year, with a final report in April 2027 �� which will likely have implications for structural considerations and funding priorities of higher education institutions statewide.

Data Set 쮸떴눈첵 Provided to Deloitte

The , along with a simple , will begin to be added the week of Mar 16th. More will be added as this process goes along and as Deloitte continues to make information requests of 쮸떴눈첵.혻

Cash Flow Projections

This version of the FY 2026-2029 Cash Flow Projection (dated Mar 6, 2026) is the most up to date and is the version that is currently being utilized.

Working and Decision Framework Structure

This Organizational Structure was developed to frame the work and decision flows that must be completed by April 30. This incredibly fast timeline requires a structure that prioritizes 쮸떴눈첵�셲 value on shared governance and collaboration while allowing movement with efficiency and speed.

Timeline

2026 March
Pre-Launch Planning and Project Kickoff – early-mid March
Interviews and Focus Groups – mid-March
2026 March - April
Current State Data Analysis – March- mid-April
Strategic Options Analysis – March-mid-April

2026 March - April
2026 April
Plan Completion/Submission to HECC and 쮸떴눈첵 Board of Trustees – by April 30
쮸떴눈첵 Board of Trustees Meeting – by or on April 30

Contact the Office of the President

쮸떴눈첵혻Office of the President
1250 Siskiyou Blvd.
Ashland, OR 97520
Office: 541.552.6111
presidentsoffice@sou.edu

쮸떴눈첵