Oregon Lawmakers Push New Plan to Stabilize Colleges as Out-of-State and Online Programs Drain Enrollment
Lawmakers have passed a bill to strengthen the sustainability of higher education in Oregon, as out-of-state and online tutoring programs continue to make negative inroads into enrollment figures at state universities and colleges.
These statewide indicators show the enrollment and revenue pressure behind the bill:
| Measure | Oregon | US average | Year |
|---|---|---|---|
| Enrollment change | Down 20% (2014 to 2023) | About half that decline | SHEF FY2024 |
| Enrollment change | Up 3.8% (2023 to 2024) | Up 2.9% | SHEF FY2024 |
| Net tuition revenue per student | $9,700 | $7,510 | FY2024 |
| State financial aid per student | $1,224 | $1,155 | FY2024 |
| Total educational revenue per student | $18,325 | $19,092 | FY2024 |
In a bipartisan vote on Friday, the House of Representatives passed House Bill 4124, which will evaluate and assess improvements to the state’s higher education system. The bill now moves to the Senate for approval.
The Higher Education Coordinating Commission (HECC) has been directed to examine Oregon’s post-secondary education system and to develop recommendations to safeguard its future sustainability.
The HECC Will Play a Pivotal Role to Meet the Changing Education and Economic Landscape
Possibly one of the pivotal directions for the HECC is to restructure the state’s post-secondary system to meet the changing educational and economic landscape faced by Oregonians.
The sponsor of the bill, Rep. Pam Marsh, believes fresh eyes are needed to reassess Oregon’s education system and reevaluate its efficacy and financial resilience to the continuously changing needs of its diverse communities.
Built into the requirements, the bill seeks a reevaluation of post-secondary institutions, taking into account student populations, public services, and research.
The timelines set for the HECC to meet are October 1, when preliminary recommendations must be tabled, and April 1, 2027, as the due date for a final report.
In the meantime, lawmakers are expected to introduce legislation allocating a one-time budget to help stabilize a cash-strapped Southern Oregon University (SOU).
SOU is Facing a Long-Term Financial crisis
SOU is facing a long-term financial crisis driven by declining student numbers, inadequate state funding, and rising operational costs. Currently, SOU is cutting 15% of its budget, as well as several academic programs, and 67 positions.
Currently, Oregon’s total public investment in higher education is $8,412 per student, well below the national average of $11,040 and ranking 37th among all states.
Source: Oregon HECC summary of SHEEO State Higher Education Finance data (public investment per student)
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This represents about 24% below the national average, according to a recent State Higher Education report, classifying the financial situation of higher education in the state as fragile, particularly when costs rise.