An independent arbitrator found Portland State University violated shared governance when administrators executed budget-driven layoffs and ordered the university to reinstate 10 nontenure-track faculty with back pay. The decision came after faculty claimed they were excluded from budget-cut deliberations required under the campus contract. The ruling emphasizes that shared governance provisions are contractual and enforceable: arbitrator Dorothy C. Foley concluded the layoffs did not follow the agreed procedures for curricular and program changes. Portland State officials said they disagree and are evaluating next steps. Faculty leaders called the ruling a decisive rebuke of administrative overreach and said it should serve as a warning to other institutions making deep cuts without meaningful faculty consultation.