Southern Oregon University (SOU) is at risk of closure unless it executes major financial restructuring, according to consultant recommendations presented to the university’s governing board. Deloitte urged SOU to cut money-losing programs, freeze salaries short term, adopt shared back-end services, and pursue additional restructuring steps such as contingency “controlled winddown” planning if milestones aren’t met. Oregon Gov. Tina Kotek signed emergency funding of $15 million, but the measure includes conditions: SOU must balance budgets by the 2027–2029 biennium and produce a longer-term regional higher education plan without relying on ongoing increases in state support. Deloitte warned that even with the funding, SOU is unlikely to have enough cash to cover obligations by fall 2027. Deloitte’s analysis reportedly found only 10 of SOU’s 23 academic units were operating with positive gross income per student credit hour in 2024–25. The proposed measures would target savings through athletics, back-office consolidation, and reductions in academic areas contributing to losses.
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