Portland State University (PSU) has issued layoff notices to 89 non-tenure track faculty members, indicating potential job losses by the end of the academic year. The university has stated that final decisions concerning these layoffs have not yet been made, with further notifications anticipated in mid-December.
University’s Rationalization
In an official statement, PSU management explained that the institution’s ongoing structural budget deficit has necessitated difficult decisions in order to uphold its mission. The university’s comprehensive financial sustainability plan includes the potential layoffs alongside an evaluation of academic programs, operational adjustments, revenue enhancement strategies, and retirement incentives for faculty.
Response from Faculty Association
In reaction to the announced layoffs, the American Association of University Professors (AAUP) chapter at PSU criticized the administration’s approach, suggesting that it prioritizes layoffs instead of exploring opportunities for enrollment growth or investing in faculty and student support.
Enrollment Declines
The budgetary challenges facing PSU reflect a broader trend affecting numerous universities across the nation, particularly declines in enrollment over recent years. Between 2017 and 2022, PSU reported a 19% decrease in student enrollment, decreasing its headcount to 21,609 students. Despite these declines, the university managed to slightly reduce its operating deficit to $220 million in fiscal 2023, down from $222 million the previous year.
Budget Cuts and Capital Projects
The AAUP’s statement highlighted that the university had enacted $12.5 million in budget cuts across academic units for the upcoming fiscal year. Furthermore, the union called out university administrators for favoring campus construction projects, with over $300 million planned in grants and private philanthropy, over investments in faculty.
Financial Position and Salary Concerns
Financial analyses by external accounting professor Howard Bunsis indicated that PSU maintains a strong fiscal position, characterized by high bond ratings, significant reserves, cash flow surpluses, and increasing state funding. Nonetheless, concerns persist regarding the disparity in growth between administrative salaries and faculty salaries, which have struggled to keep pace with inflation.
Labor Contract Negotiations
Ongoing discussions surrounding labor contracts have brought layoff protection issues to the forefront, as negotiations continue between the university administration and the AAUP.
Source: Higher Ed Dive.