BUDGET REVELATIONS ESCALATE: MHCC to face looming budget cuts, uncertain FINANCES?

Adam Elwell

The Advocate

Mt. Hood Community College may be between a rock and a $5 million hard place.  

In an email to MHCC faculty on Feb. 6, President Lisa Skari wrote that “even with careful planning, the college is still facing an estimated gap of nearly $5 million that must be addressed in the coming fiscal year’s budget.”

Earlier this week, Oregon released its economic forecast, revealing a $15 billion budget shortfall driven in part by federal cuts to Medicaid and SNAP funding. For MHCC, this means additional help is unlikely. State support makes up 52% of the college’s budget.  

The bottom line: MHCC faces a $5 million gap in next year’s budget. If the deficit is not resolved, the college will fall below the minimum budget required by the state for the 2026–27 school year. To avoid that, the college will need to increase revenue and reduce spending. Personnel currently account for 81% of MHCC’s expenses. Although the college projects a 3% to 5% enrollment increase over the next few years, those gains won’t be enough to close the gap.  

Sara Williams, humanities instructor and president of MHCC’s full‑time faculty association, said the college typically signals “pretty clearly” in advance if personnel cuts are coming, and faculty have not been notified of any. She added that “there is always a little doom and gloom” whenever a new round of bargaining begins. This bargaining cycle is expected to conclude in August.  

In a Dec. 3, 2025 email to the college, Skari said MHCC had about five months’ worth of reserves. Without additional revenue, she indicated that those reserves will be depleted within three years.  

Skari asked staff to minimize future budget requests, reallocate resources more efficiently and submit ideas that could generate revenue.  

While the overall economic outlook for 2026 is positive due to lower interest rates and the absence of new tariffs, key challenges remain. Higher‑income Oregonians are faring well, but working‑class residents have not fully recovered. Community colleges also tend to see higher enrollment during economic downturns and declines during stronger economies. MHCC is projecting only marginal enrollment growth, primarily through its high school–to–college pipeline.  

In a budget update email following a Dec. 5 meeting, Skari noted the potential consequences if financial conditions fail to improve: “This would strain colleges’ ability to offer enough course sections, sustain high‑demand CTE cohorts, update training equipment, and maintain advising and student support capacity.” Complicating matters further is the recently approved 2025 bond measure.   "The bottom line: MHCC faces a $5 million gap in next year’s budget. If the deficit is not resolved, the college will fall below the minimum budget required by the state for the 2026–27 year."