Bridge to the Future Update for Winter 2025
February 6, 2025

Dear PSU Colleagues,

Today I have a progress update for you on some key components of Bridge to the Future, PSU’s plan for long-term success and sustainability. We are on track to close the FY2024-25 budget deficit of $18 million through actions taken in four areas, with each division playing a part. In the table below, you can see where savings are being found.

In this message, I will update you on how our non-academic divisions are meeting their budget targets and the progress we have made toward Operational Excellence.

Divisional Targets

Last fall, I shared that each non-academic division has a target for closing the budget deficit totalling approximately $2.3 million. Division leaders were tasked with finding savings while minimizing disruption and layoffs, in ways that ensure long-term financial sustainability. The divisions are on track to meet their targets primarily through reduced outside contracts, travel,other general expenses, retirements and unfilled vacancies. Additionally, five currently held non-academic positions were identified for FTE reduction or elimination. The employees who are impacted are being notified and we are committed to providing support for them during this transition.

Non-academic divisional leaders will soon update their teams about their budget reduction plans and long-term sustainability efforts.

Operational Excellence

The Operational Excellence effort is dedicated to improving our administrative structures while keeping student and employee support at the forefront. As you may recall, our focus is on three key areas: Finance, Human Resources and Marketing and Communications.

Work Area Teams, guided by MGT Consulting, are currently identifying pain points and barriers in these areas and will gather additional feedback from employees through listening sessions tentatively planned for the week of March 10 and surveys. If your work — even a small part of it — involves tasks related to finance, human resources and/or marketing and communications, I encourage you to participate. Your input is crucial to redesigning systems that work better for all of us.

I want to point out that this particular process is focused on identifying long-term efficiencies that may result in future savings, however we are still in the proposal stage. Recommendations will be reviewed by the Executive Leadership Team in late spring, with final decisions by President Cudd for the next fiscal year. In the meantime, we are finding immediate savings of approximately $3.3 million through vacancy management and reduction of operational expenses.

For a deeper understanding of this long-term initiative, please review the Operational Excellence Project Charter.

The Big Picture

For more details on the topics I mentioned above and on the other areas where we are pursuing financial sustainability efforts, I invite you to visit our Bridge to the Future website. University leadership, including myself, will present a report to the Board of Trustees during the Executive and Audit Committee meeting on Thursday, Feb. 13.

And on Wednesday, Feb. 19, we will also be talking about financial sustainability and other important topics at the Winter Administrative Briefing. All employees are invited to attend in person or remotely. [RSVP]

The Bridge to the Future initiative represents our ongoing commitment to financial sustainability. It helps us navigate challenges with care, make informed decisions and a focus on our core values. Thank you for your dedication as we move forward.

Take care,

Andria Johnson
Vice President, Finance and Administration

Portland State University