PSU is in the middle of a budget planning process for next year. Our colleges and administrative units need direction to help them plan for the 2025 fiscal year which starts July 1.
At the same time, we are engaging in the creation of a strategic plan that will inform many of the big choices we have to make. That plan won’t be final until June, and we won’t start implementation until next year.
Nevertheless, as I have stated before, we must take some steps now to work toward financial sustainability.
We are rapidly spending down our reserves. These reserves have a purpose — they are there to ensure that in an unforeseen event like a natural disaster, a terrible recession, or a public health emergency, we can continue to operate the university. That is why the Board of Trustees has a policy to keep reserves at a level that provides 90 days of operating budget.
I have asked them to reduce that requirement temporarily so that we have time to finalize and begin implementing our strategic plan. But they will not authorize us to spend the reserves to the degree required to completely forestall cuts. As a result, next year’s budget will require cuts.
We will try to do that as much as possible without compromising our ability to implement the strategic plan. So we will need to look for cuts that will preserve the functions that are most core to our mission.
Some of you have heard that we are eliminating our Intensive English Language Program (IELP) no sooner than July 1. We take this step after due consideration by interim Provost Shelly Chabon. We made this decision prior to completing the strategic plan because we have determined that this will not compromise our mission or future implementation of PSU’s strategic plan. We will take the steps necessary with Faculty Senate and PSU-AAUP to act on this decision. We are still in the process of negotiations about the exact process that will be applied.
Enrollment in the non-degree Intensive English Language Program has been in decline since 2013 due to the declining enrollment of international students. The program also serves a relatively small number of PSU students. In the most recent fiscal year, IELP had 30 PSU admitted students being taught and supported by 11 full-time non-tenure track faculty members.
Despite a significant investment in IELP, revenue from the program does not support expenses and has not since 2015. While PSU will continue to support international students in pursuing and completing degree programs at PSU, we must join the many other institutions that have also made the difficult decision to close their IELP programs.
The elimination of any program is painful for the entire PSU community and a layoff of any size is heartbreaking. Our IELP colleagues are valued members of our community. We are working with our union partners and will do whatever we can to support those affected by the closing of the unit.
You will be hearing more from me and other university leaders in the coming weeks about our plan for navigating PSU’s budget deficit. I deeply appreciate the engagement with this topic on our campus and the ideas that many of you have generated in our campus forums. I know this process may be difficult to navigate, but I know our campus community is strong. My inbox is open for your feedback at president@pdx.edu.