PORTLAND, Ore. — Oregon’s public universities are facing one of their most serious financial crises in decades. Declining enrollment, stagnant state funding, and rising tuition costs have combined to force deep budget cuts across nearly every campus — a blow that educators warn could permanently damage the state’s higher education system.
Enrollment Down, Budgets Slashed
Over the past 15 years, most Oregon universities have experienced steady enrollment declines, with few exceptions. At the same time, state funding has never fully recovered from the Great Recession, leaving institutions increasingly reliant on tuition — just as families grow more reluctant to take on student debt.
The result: universities slashing budgets and cutting staff.
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Southern Oregon University is reducing its $71 million budget by $10 million.
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The University of Oregon has announced nearly $30 million in cuts, including the elimination of 176 full-time positions and 100 student worker jobs.
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Portland State University (PSU), Oregon’s largest urban university, faces a $35 million shortfall over the next two years, which could lead to more than 200 full-time faculty and staff layoffs.
Portland’s Recovery at Risk
The financial strain at PSU poses unique risks beyond the campus. The university employs thousands of workers and draws roughly 20,000 students into downtown Portland each year. According to Portland Clean & Safe, foot traffic downtown remains at just half its pre-pandemic levels — 21 million pedestrians in 2024 compared to 42 million in 2019.
City leaders have counted on PSU to help revive downtown businesses and foot traffic, but the looming budget cuts could slow that recovery significantly.
“Because more than 80% of our budget supports personnel, workforce reductions will be required,” PSU President Ann Cudd said.
Faculty union leaders disagree. “Cutting this many positions will damage our ability to serve students and support Portland’s recovery,” warned Bill Knight, president of the PSU Faculty Union.
Impact on Students and Staff
The cuts will ripple through every level of the university community. Adjunct faculty, classified staff, and graduate assistants — represented by PSUFA, SEIU Local 503 Sublocal 89, and the Graduate Employees Union — all face job insecurity.
Students are also feeling the effects. During a recent PSU Board of Trustees meeting, one student described how course cancellations have already made it harder to graduate on time.
“When programs are eliminated and classes are canceled, students lose access to the courses they need,” the student said. “Some of us have to change majors. Others are forced into overcrowded classrooms.”
Student services — from academic advising to mental health support — are often the first on the chopping block. For low-income students already struggling with rising tuition and living costs, these cuts can make the difference between finishing college and dropping out.
Searching for Solutions
Experts and educators agree that there is no quick fix. Restoring stability will require a collaborative effort among state lawmakers, donors, administrators, and faculty unions.
Higher education advocates are urging the Oregon Legislature to increase funding to prevent further erosion of academic quality. They are also calling on donors and alumni to invest directly in scholarships and student support programs.
“Universities should not have to choose between financial solvency and educational quality,” said PSU professor Ramin Farahmandpur, who also serves as a union representative. “We need a sustainable plan that values both our students and the employees who serve them.”
Without intervention, Oregon risks a future where fewer students can afford college — and where the institutions that once drove innovation, equity, and economic growth are forced to shrink in scope and ambition.
“The stakes,” Farahmandpur said, “are nothing less than the future of public education in Oregon.”
