Southern Oregon University is shifting from repeated budget cutting toward a broader operational overhaul after a state infusion helped the institution bridge cash needs and avoid a “death spiral.” The regional public university—after declaring financial exigency in 2025 and cutting about a third of faculty and staff positions over several years—received an emergency $15 million from the state to cover cash shortages through fiscal year 2027. Leaders say the experience changed how they viewed institutional survival and the risk of further reductions. The Board of Trustees finalized the “Vitality Plan” in July, combining some streamlining with a restructuring of academic and administrative reporting lines. The plan includes eliminating about 60 full-time equivalent positions, consolidating academic departments so they report to a single dean, and adjusting program decisions relative to an earlier consulting recommendation. For presidents and boards, the case shows an alternative to continued contraction: use targeted state support to redesign the institution’s operating model while re-centering student services and academic delivery.