Message from the President – Update on Fiscal Sustainability Action Plan & Budget Reductions, February 18, 2025
PCC Community,
Like many colleges across the country, PCC is grappling with an unpredictable economic landscape that has brought hardship for many in our community. Since launching our Fiscal Sustainability Action Plan late last year, we have been hard at work to identify $14.78 million in necessary reductions for the 2025-2027 Biennium budget cycle.
The full breakdown of the budget reductions is below. You’ll see that most come from savings in materials, supplies, and services, as well as vacant position eliminations and administrative restructuring. In making our recommendations, we prioritized protecting our students’ needs so that we could ensure our community has the quality educational experience they have come to expect from PCC for generations. Still, we recognize that any reduction comes with a significant impact, and we have considered every possible path forward before making these decisions.
At the same time, I want to assure you that we have not given up on pursuing every opportunity for increased revenue. In addition to investments in our Strategic Enrollment Plan, our College Relations team is championing PCC’s value with state legislators, and we continue to monitor the many federal funding uncertainties that may impact higher education in the coming years. While some of these external factors remain in flux, we are doing everything we can to ensure PCC remains a reliable foundation for our students.
The PCC Board is considering a $5 per credit tuition increase or 3.8% increase per year for the next two years. Even with this increase, PCC is among the most affordable community colleges in Oregon. The proposed tuition increase for the 2025-2027 Biennium was developed to ensure student voices were considered in balancing affordability.
| College Unit | Reduction Amount | Percentage of Total Budget |
|---|---|---|
| Office of the President | $1,447,871 | 3.25% |
| Office of the EVP | $4,502,199 | 2.90% |
| Academic Affairs | $6,492,592 | 1.95% |
| Student Affairs | $2,341,374 | 3.12% |
| Total Reductions | $14,784,036 |
Management and Confidential Salary Reduction of 1.58% per year: $1,501,161 (included in above totals)
$3,395,841 of the total reduction will come from changes to our materials, supplies, and services line items. The remaining $11,288,195 in personnel and benefits savings by classification type is as follows:
| Classification | Incumbent Position Eliminations | Vacant Position Savings | Other Reductions |
|---|---|---|---|
| Management & Confidential | $5,138,038 (4 positions) |
$2,175,006 (8 positions) |
|
| Academic Professionals | $454,812 (3 positions) |
$281,174 (2 positions) |
|
| Classified Staff | $183,936 (1 position) |
$911,038 (5 positions) |
|
| Faculty | $0 (0 positions) |
$1,543,511 (3 positions) |
|
| Casual Labor Pool Savings | N/A | N/A | $600,680 |
| SubTotal | $5,776,786 (8 positions) |
$4,910,729 (18 positions) |
$600,680 |
Total Salary & Benefits Savings: $11,288,195
These reductions do not resolve all of our financial challenges, but they are a step toward long-term stability. The road ahead is long, but we will continue to navigate it together. Your commitment to PCC and our students is deeply felt, and I am committed to leading us toward fiscal sustainability with integrity and transparency.
Sincerely,
Dr. Adrien Bennings, President
Portland Community College