Chemeketa Community College, the largest higher‑education institution in the Salem‑Keizer region, announced that it expects to reduce its operating budget by about $5 million for the 2027‑28 fiscal year. President Jessica Howard explained the shortfall in a video message released on Oct. 12, saying the college is entering the new year with a deficit that must be addressed through cuts and that another shortfall is likely for the following year.
Why the deficit is growing
Howard identified two main factors behind the looming shortfall. First, enrollment has fallen “considerably” over the past decade, and the college projects the trend to continue. “Enrollment determines the lion’s share of Chemeketa’s funding,” she said, noting that the region’s demographic realities – fewer high‑school‑age students in the Salem‑Keizer public‑school pipeline – are working against the college.
Second, staffing costs now represent roughly 85 % of total operating expenses and have risen each year. The increase reflects cost‑of‑living adjustments, higher insurance premiums, and larger contributions to the Public Employee Retirement System that funds current and former staff.
Past cuts and faculty response
The college previously eliminated 53 positions in 2023, including 30 vacant roles and 23 layoffs. Those reductions prompted strong pushback from faculty, underscoring the sensitivity of any further workforce adjustments.
What the administration plans to do
Howard said the college will take a “holistic” approach to the upcoming budget, searching for efficiencies while staying focused on its core mission of educating students. She emphasized that the administration is re‑imagining operations to align with the new financial reality.
Associate Vice President Marie Hulett clarified that no final budget decisions have been made yet. “Chemeketa is currently going through its annual budget development process, which includes identifying potential areas for cost savings, increased efficiencies and staffing levels,” she told the Salem Reporter.
The college expects to present a proposed budget to its budget committee in April 2027, with formal adoption slated for June 2027.
Community impact
Local leaders and families are watching the situation closely, as budget reductions could affect program offerings, class sizes, and support services that many students rely on. The college’s role as a regional workforce pipeline makes its financial health a matter of broader community interest.
For further questions or comments about the budget process, readers can contact Salem Reporter reporter Kent Friel at [email protected].
Original reporting: Salem Reporter — read the source article.
