Southern Oregon University could receive $15 million from the state under an end-of-session budget bill aimed at stabilizing the Ashland campus as it faces its third financial crisis in four years.

House Bill 5204 sets aside money for SOU this biennium. The funds would be allocated to the state’s Higher Education Coordinating Commission (HECC) and managed by the legislature’s Emergency Board. The university would be required to submit monthly financial statements and quarterly reports.

The bill also directs the HECC to work with the university to develop a long-term plan for financial sustainability by the end of April.

“This is really good news for the moment for SOU,” said State Rep. Pam Marsh, a Democrat from southern Jackson County. “The good news comes with a big caveat, which is that this work of looking at the 27-29 biennium can’t be underestimated. It is a huge undertaking for the next two months.”

The sustainability plan must include a balanced budget and “identify programs and functions of the university that are both specifically meaningful to southern Oregon or the state.” It must also evaluate options for partnering with other institutions.

The HECC must also report to the Emergency Board by June with SOU’s updated financial modeling and operational plan.

The bill must pass before the legislative session ends March 8.

University leadership didn’t immediately respond to a request for comment on Monday.

“SOU is an important, independent academic institution, and I appreciate their leadership’s transparency and focus on responsible financial management,” Governor Tina Kotek said in a statement last month.

SOU recently announced that it will drop below its approved cash threshold of $12.68 million this year. By the end of February 2027, the university projects it won’t have enough cash to make payroll. Leadership anticipates a shortfall of more than $14 million by June 2027.

University leaders attribute the crisis to rising costs, declining enrollment and what President Rick Bailey has described as inadequate state funding. In addition, they said the budget and finance offices are understaffed, financial reporting is insufficient and financial policies need strengthening.

In 2023, the university cut almost 82 full-time-equivalent positions. Trustees also approved an additional plan in September 2025 to cut more than $10 million over four years. Between the two plans, Bailey said SOU has cut one-quarter of its faculty and staff.

“It is a very tight budget, so I think what it reflects is an understanding from the governor and legislative leaders of how important SOU is to our community and how important, how critical it is that we stabilize the university,” Marsh said. “This is one of very few significant new investments from General Fund monies.”

As part of the budget bill, the HECC would receive an additional $500,000 for SOU’s long-term financial sustainability plan, as well as $2.5 million “for proposals to increase the resilience and sustainability of Oregon’s post-secondary system.”

Those funds are related to a separate bill, House Bill 4124, which Marsh is cosponsoring. It is aimed at planning for the future viability of the state’s higher education system, given rising personnel costs for benefit programs and declining enrollment. That bill recently passed the House.

JPR is licensed to Southern Oregon University, but our newsroom operates independently. Guided by our journalistic standards and ethics, we cover the university like any other organization in the region. No university official reviewed or edited this story before it was published.

Jane Vaughan is a reporter with Jefferson Public Radio. This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.

It is part of OPB’s broader effort to ensure that everyone in our region has access to quality journalism that informs, entertains and enriches their lives. To learn more, visit our journalism partnerships page.

News Source : https://www.opb.org/article/2026/03/03/lawmakers-15-million-for-southern-oregon-university/