Dear Campus Community,
First, I want to acknowledge the earlier communication related to the federal spending freeze, in particular the impacts on our daily operations. I hope that you all take time to review this communication and review future communications as the administration continues to monitor, assess, and respond to further developments.
As I mentioned during the board meeting on Friday, January 24, we are beginning the practice of sending out a message to campus following each meeting of the full board. We intend to report on any action items and provide at least an initial response to comments that are shared with the board. While we always hope members of the community can join us for these meetings in person, we recognize that's not always possible and we hope this type of recap will be a helpful communication.
Additionally, as a board, we are committed to collaborating with the campus community and sharing resources that all of us can review to better understand the issues at hand. On our Board Website, you will find a new tab, Board Educational Resources, that includes educational background information that will be used as we develop an onboarding process for new trustees. The most recent addition was the “Flipped Orientation on Capital Projects” video, which highlights the process, campus planning and engagement, and funding mechanisms for capital projects. I invite everyone to review this resource and share any feedback, recommendations, or suggestions as we continue developing more materials throughout the year.
To begin, here are some highlights from the committee meetings held Thursday, January 23.
- Governance Committee (GOV) discussed a needs assessment for at-large trustee positions, onboarding, and opportunities for collaboration around shared governance.
- Academic & Student Affairs Committee (ASAC) focused on support for our current student population and included highlights related to the AANAPISI grant and ways that PSU supports students who enter PSU with a GPA below 3.0.
- Executive & Audit Committee (EA) shared the response to the Bunsis alternative analysis of the PSU budget and reviewed the analysis done by the Finance team as requested in the November 2024 board meeting. Lastly, the committee heard a presentation on the audited financial statements.
- Finance & Administration Committee (FA) moved forward the housing resolution noted below and started their conversations about tuition and budget parameters for the upcoming fiscal year.
Next, we want to highlight any actions from the meetings.
- Program approval was given at the ASAC meeting, and the MS program in Semiconductor Technology was approved. This program will now move forward to the Higher Education Coordinating Commission (HECC).
- A resolution approving replacement student housing was recommended by the FA committee and approved by the full board.
Public Comment
During the full board meeting we heard 15 people share their public comments. The key themes from the public comments questioned the need for and illustrated the impact of the budget cuts taking place this year and the shared governance outreach that has taken place this year.
As a board, we have a fiduciary responsibility to ensure the long-term sustainability of the institution. Earlier this year we unanimously agreed that President Cudd would need to address the $18 million budget deficit that we were facing which addresses our current reality:
- Enrollment has declined over the past five years, with a roughly 25% drop in student credit hours.
- This has led to a $40 million decrease in net tuition revenue.
- At the same time, expenses have increased.
While we understand the stress and impacts associated with any budget cuts, we must move into a financial reality where consistent annual budget cuts are no longer needed and we can invest in our campus community and most importantly our students.
As a board, we are committed to fostering a culture of collaboration and open dialogue with our shared governance partners. We will continue to support opportunities for engagement and actively seek collaboration with faculty, staff, and student groups on key initiatives. We believe that the collective approach utilized during the strategic planning process demonstrates the powerful impact of the campus community working together towards shared goals. However, I also want to remind the campus community that each of the shared governance partners has a specific role and responsibility - with the board having the fiduciary responsibility to ensure the long term success of PSU.
Bunsis Review Completed by the Finance Team
As outlined in the November 21 board meeting, I tasked the Finance Committee to provide a review of the commissioned report by PSU-AAUP (American Association of University Professors) which was completed by Howard Bunsis, a professor of accounting at Eastern Michigan University. As I shared in my remarks and in the materials for the Executive & Audit Committee, after review of the materials, we have found that the conclusions of the Bunsis Report are misleading or unsupported by PSU’s current financial data. We hope that the campus community takes time to review the document prepared by the Finance Team as they not only completed an analysis but also provided some educational background information. We hope that following this review, the campus community will move forward with a shared understanding of the current financial situation and practices related to our budgeting process.
Closing
While all of us will experience a different impact as this work takes place, I urge the campus community to work to find a common ground that allows us to face the future together. We are a community that is here to support each other and the success of our students. As a board, we recognize the frustration associated with decisions being made, but we must center our collective interest in ensuring that PSU can remain here for the long term rather than slowly depleting our resources and ignoring the imperative to address the changing needs of the community.
As always, the Board webpage has various resources that you may find helpful, including the yearly calendar, meeting notices, meeting recordings, and other information. Feel free to utilize the Feedback form, also on the webpage, where you can share meeting feedback, general comments, or recommendations on characteristics or candidates we should consider when we have a trustee vacancy.
Benjamin Berry
Board of Trustees Chair
If you want to invite the Board to a campus event, email trustees@pdx.edu Sign up to join the Public Meeting Notice to get notified when we have upcoming meetings.
Revised following campus message sent out on January 24, 2025
- A correction was made to the Academic & Student Affairs Committee (ASAC) update for the GPA.