Portland State weighs cuts to 19 academic departments amid $35M budget deficit

Portland State University is considering eliminating or reducing nearly 20 academic departments as it faces a projected $35 million budget deficit over the next two academic years.

University President Ann E. Cudd said the financial gap represents a long-term structural deficit that must be addressed to stabilize the school’s finances.

Three programs could be eliminated entirely: University Studies, the university’s interdisciplinary general education program; the Conflict Resolution department; and the Portland Center, a small study-abroad program for students from Japan. Another 16 departments could face reductions or other changes.

University officials say the financial strain is largely due to a significant drop in enrollment. Since 2019, student numbers have fallen by about 23%, reducing tuition revenue and putting pressure on the institution’s budget.

Faculty leaders acknowledge the seriousness of the financial situation but have raised concerns about the potential impact of cuts. Matt Chorpenning said the university community broadly agrees the budget crisis is severe, though some believe the school should rely more on reserve funds while exploring long-term solutions.

The university must follow a detailed process before eliminating programs or positions under its contract with faculty unions. That process includes consultations with the faculty senate and a 30-day comment period before a final proposal is developed.

Bill Knight warned that the proposed changes could lead to around 200 job losses among faculty and academic staff, though university officials say it is too early to confirm the scale of layoffs.

Cudd said any final plan is expected to be announced in June. She emphasized that potential changes would mainly affect future students rather than those already enrolled.

Portland State is not alone in facing financial pressure. Other Oregon universities have also dealt with declining enrollment and budget gaps, prompting layoffs and calls for broader changes across the state’s higher education system.