In the face of looming $6 million cuts to the $66.7 million university budget and nearly 10% drop in fall freshman enrollment, Southern Oregon University President Rick Bailey is preparing to cut his annual salary by 20%.

Bailey’s annual salary is currently $290,000 as established by the SOU Board of Trustees when he was hired in 2021. As the university prepares to cut its budget by 10%, he is sharing in the cost cutting measures as he prepares to announce cuts to the campus. The university board of trustees initially directed a $5 million cut but expanded it to $6 million after lower-than-expected enrollment numbers came in.

“Ultimately we need to shift gears,” Bailey told faculty and staff in an internal memo obtained by Ashland.news. “Rather than determining what programs and services to cut over and over, year after year, we need to build toward a university with a $60 million budget.”

Bailey said he knows he raised some eyebrows last week with the statement that the university is “facing the biggest challenge as an institution in 100 years.”

“Here is why I do not think it was overly dramatic to make that claim,” he said. “Even after outstanding efforts from our recruiting, admissions, and advising teams, our Fall 2025 first-year class is projected to be 9% lower than the Fall 2024 class.”

After the latest congressional spending bill passed, the maximum Pell grant distribution will also be lower, Bailey said, and programs that support low income students will be defunded.

In addition, Bailey said the decision by the U.S. Supreme Court now gives the U.S. President a green light to dismantle entities even when they were created through bipartisan, congressionally directed funding.

“In essence, this now opens the door to the Administration’s stated intent to dismantle the Department of Education,” Bailey said. “Unfortunately, there is no indication that our state government will provide immediate relief or increased investment in higher education – particularly as the state struggles with its own budget challenges.

“All of this means we have to take responsibility for our own future,” he added. “While the Board of Trustees directed us to reduce our costs by $5 million this fiscal year, it is clear now that this amount won’t prepare us for any of the challenges I listed above; it will only address the impact of the state’s decreased funding.”

Bailey plans to speak more about this at a special campus conversation scheduled for 10 a.m. Friday, Aug. 1, at SOU’s Recital Hall.

“I know these are anxious times, and I share those feelings with you,” he said. “Be assured that we will overcome these challenges and craft a pathway that puts our university in a stronger position. And I am confident that we will do it together.”

Trustees meet Wednesday
The Southern Oregon University Board of Trustees is due to meet virtually from 3:30 to 4 p.m. Wednesday, July 30.
To view the meeting notice, click here
To view the meeting live online, click here at the time of the meeting

Reach Ashland.news reporter Holly Dillemuth at hollyd@ashland.news.