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Portland State University could see reductions or closures of 19 departments amid a financial restructuring process, president Ann Cudd announced on Monday.
The university faces a $35 million deficit over the next two years. Cudd proposes to close that gap by cutting $17 million in fiscal year 2027 and $18 million in fiscal year 2028, while growing a $1.9 million strategic investment fund.
The 19 affected departments are largely in the humanities. Three departments—University Studies, Conflict Resolution, and Portland Center—face closures under Cudd’s early proposal.
University Studies offers a liberal arts spin on general education, teaching critical thinking and communication skills. Conflict Resolution offers degrees that teach students deescalation and peace-building strategies. And Portland Center facilitates opportunities for students at some Japanese universities to study abroad at PSU.
Cudd notified both the PSU American Association of University Professors and the Faculty Senate on Monday of her intentions to adjust department structures. The process is outlined in Article 22 of the PSU-AAUP contract, and gives faculty and staff the chance to propose alternatives and offer feedback. Students currently enrolled in any programs should not be interrupted during their course of study, Cudd told reporters on Monday.
The list of affected departments, Cudd says, came about after analysis from PSU’s Plan for Institutional Vitality and Organizational Transformation, also known as PIVOT. The plan, she said, assessed what PSU teaches students and how its offerings aligned with demand and the labor market.
“I’m taking this step because after reviewing the results of our work, it has become clear that our financial condition is such that departmental reductions or eliminations may be unavoidable,” Cudd said.
It’s not yet apparent how much money PSU hopes to save with departmental changes, or how many staff the changes would affect. A list of affected departments—some of which encompass multiple certificates and degrees—is available here. Departments that could be reduced include history, philosophy, and economics, as well the educator licensure program that trains teachers.
“I will say up front that there will likely be layoffs as a result of this process, but we will not have any specifics about that until further into the article 22 process” Cudd said.
Bill Knight, president of PSU-AAUP, termed the university’s Monday message “hasty” and says that the union is “incredibly disappointed.” Knight says that while PSU has certainly faced some financial hardships, the administration should direct its energy toward recruitment, retention and growth.
Knight says that before slicing departments, the university should make more concerted efforts to strengthen the pipelines with Portland-area school districts and community colleges, and look into direct billing programs with larger Oregon employers. And he suggests PSU mobilize the city of Portland in its efforts to grow, too. “We are so implicated in the future of downtown,” he says.
“It’s easy for them to install this austerity plan where they just cut; they don’t have to work out all the ways in which we have to make new deals in order to grow,” Knight says. “We have to make ourselves part of the Portland economy more successfully. I think they’re worried they’re not capable of doing that. It’s easier just to cut.”
Cudd said PSU has plans to bolster its enrollment efforts and is “fighting against a tide of declining interest in college.”
Cudd said the cuts are not arbitrary, but part of a larger vision: “We centered the student experience throughout this analysis,” she said. “We simply must ensure that every student who enrolls at Portland State can find the program that sparks their interest, can get the classes they need to graduate in a timely fashion, and realize a return on their investment of their tuition dollars in the form of a gratifying career.”
Knight, for his part, says PSU-AAUP is prepared to challenge the university throughout the process to limit the number of affected faculty and staff. That will involve questioning the university’s financial narrative, which it is expected to present later this month, and asking questions about PSU’s reserves. (Cudd indicated no interest in further tapping reserves.)
And Knight has some concerns that the proposed cuts reflect a broader “attack on the humanities” nationwide. “It’s hard not to see this as absolutely part of that wider framework,” he says. “I don’t buy the economic necessity of targeting these programs…what’s costing the university a lot of money is that we haven’t invested in enrollment and recruitment adequately.”
