Message from Executive Director Ben Cannon
Congratulations to the many thousands of graduates who are receiving their degrees and credentials this month, as well as everyone who supported them in their journeys! Oregon’s public colleges and universities usually award about 35,000 degrees and credentials each year across the state, and June’s hot-off-the-press announcements on the sheer number of graduates (in this case, community college grads) are always exciting.
For example, the OSU Daily Barometer reports that Oregon State University's graduating class included 1,448 students who were the first in their families to earn a college degree. A recent OPB story described the first graduates of a Central Oregon Community College program serving current and formerly incarcerated students. And Ashland News reports that Southern Oregon University reached a notable milestone this year in celebrating their 100th commencement. This is just a sliver of the good news statewide as we look at the incredible impacts of higher education and training in our communities.
Here at the HECC, the summer months don’t slow down in public policy and funding work. We appreciate the thoughtful input of many partners as we initiate the House Bill 4124 Higher Education Revitalization Study collaborative processes. After a consultation process led by Oregon Consensus that is informing our approach, we are now setting the foundation for this work by establishing an advisory group, working on hiring the primary consultant, and establishing other engagement structures. At the same time, we are nearing the culmination of the extensive public process involved in creating the agency request budget (ARB) and legislative concept recommendations for the upcoming biennium, with thanks to all partners who have engaged with our commission over the course of numerous public meetings on this.
I am also excited to announce in this newsletter some exciting developments in financial aid, including implementation processes we are establishing to prepare for Oregonians to benefit from the Workforce Pell, and increases seen in financial aid applications across the state. And finally, I am pleased to share in this newsletter some forward-looking changes we are making internally at the HECC agency to realign with our goals. In the course of our strategic planning, we realized a need to make some updates to HECC's organization structure to drive the kinds of connections and collaboration that our learner-focused work calls for.
Thank you, as always, for your engagement as we work together to drive opportunity for all Oregon students and learners.
Advisory and Engagement Processes for the House Bill 4124 Higher Education Revitalization Study
A major focus of the HECC’s work in 2026-27 is the development of a comprehensive study and recommendations on the public postsecondary system in Oregon as assigned by House Bill 4124. Executive Director Cannon updated the Commission at its June public meeting on HECC's active implementation of recommendations from Oregon Consensus to establish a transparent, inclusive, and collaborative process for this statewide project. Oregon Consensus's HB 4124 Higher Education Revitalization Study Process Scoping and Design Assessment is informing the scope, process design, and procurement of contracted services to support this study.
By summer 2026, HECC intends to engage a contractor that will conduct the bulk of the project, including outreach, communications, data-gathering, analysis, and recommendations. You can learn more and stay updated on this work on HECC's House Bill 4124 web page here. Consistent with the membership structure advised by Oregon Consensus recommendations, HECC has established an Advisory Group that will help steer the project and advise staff. This group will receive regular updates on the project, advise HECC staff on guiding the consultant's work, and attempt to forge areas of alignment with—and acknowledge areas of deviation from—the consultant's perspectives and recommendations. In addition to the Advisory Committee, the HECC plans to establish numerous other engagement structures, including ad-hoc work groups on specific topics, a student voices group, a postsecondary institution finance and academic administrators group, regular legislative briefings, and regional community forums across the state.
Oregon Sees Increase in Financial Aid Application Completion Rate Across Oregon Public High Schools
Even higher increases are seen at sites participating in OSAC’s FAFSA Plus+ and ASPIRE programs
We are pleased to report that Oregon high school seniors are completing key financial aid applications at a higher rate than last year according to the most recent data. When students complete the Free Application for Federal Student Aid (FAFSA) or the Oregon Student Aid Application (ORSAA), they gain access to critical financial aid which helps them to achieve their postsecondary goals. The statewide FAFSA/ORSAA completion rate as of June 1st, 2026 was 47.8 percent, a 1.4 percentage point increase over the completion rate from last year.
To support efforts to increase the number of Oregonians who access state and federal financial aid, the HECC Office of Student Access and Completion (OSAC) releases FAFSA/ORSAA completion rates for high schools on our website. The HECC reports available here are used to inform Oregon public high schools of their completion rates over time, allowing them to track progress and measure success.
OSAC supports increased FAFSA and ORSAA completion through a coordinated statewide effort focused on outreach and training, including workshops and webinars for students, families, and school staff. Through the FAFSA Plus+ initiative, participating schools receive student-level completion data that allows them to identify and directly support students who have not yet submitted an application. This targeted approach is producing results: FAFSA Plus+ participating schools achieved a 50.8 percent completion rate, compared to 32.3 percent among non-participating schools. Similarly, ASPIRE sites, which provide career and college readiness advising and support, reached a 51.8 percent completion rate, compared to 42.0 percent at non-ASPIRE sites. In addition, the FAFSA has also become significantly simplified and easier to complete, with many applicants now able to finish the form in approximately 12 minutes.
Oregon’s statewide improvements are consistent with national trends in FAFSA completion. The National College Attainment Network announced in May 2026 that across the nation, the high school class of 2026 has set an all-time high completion rate for the FAFSA.
Continued Development of Agency Request Budget for 2027-2029 Focuses on Potential Impacts of Funding Levels
Recent public discussions focused on potential impacts of Current Service Level (CSL) calculations, plus an accompanying narrative on the significant need for future investments
At the June 11, 2026 HECC meeting, the HECC continued the extensive public process of developing the Agency Request Budget, the agency's recommendations to the Governor on the budget needs of the higher education and workforce system for 2027-2029. Materials were for discussion only, and the Commission is not expected to take action on the ARB until August 2026. Commissioners received an overview presentation on the draft ARB development detailing the draft calculated amounts and implications of current service level (CSL) funding for several key budget categories, including the Community College Support Fund, Public University Support Fund, and funding for the Oregon Opportunity Grant. They also reviewed a list of preliminary policy option packages (POPs) for consideration. Please note that since the June meeting, some CSL amounts presented to the Commission have been revisited by the Department of Administrative Services – updated information will be presented at the August 13 public meeting.
Under the budget development guidance to HECC and other agencies, most policy option packages in the ARB for the 2027-2029 budget cycle are required to be cost-neutral and not require additional or new revenue. While the HECC faces strict limits on the amount of new funding that agencies may request, agencies have been encouraged to include within budget narratives “future investments tied to the goals and objectives in the agency’s strategic plan," and the HECC is planning to do so.
The Commission reviewed and received positive responses to the first draft of a narrative describing the need for future investments for potential inclusion in the ARB. The narrative takes a big picture view of the higher education funding trends in Oregon in relation to other states, where Oregon ranks 37th and is far below national averages. The U.S. average for state and local investment in public postsecondary education is $12,082 per FTE student, while in Oregon, it is $8,580. The narrative describes what would be required for Oregon to reach at least average levels of public investment in its postsecondary system. Additionally, it looks at what it would take to bolster the number of enrolled students served to levels comparable to higher-enrollment states. Together, the initial data summarized in the narrative under development concludes that Oregon would need to more than double its annual budget for public higher education. The Commission will consider final ARB information for approval at its August 13 public meeting.
Update on Legislative Concepts Underway
Also at the June 11, 2026 HECC meeting, HECC staff provided an update to the Commission summarizing the state’s most recent economic forecast and sharing an update about HECC legislative concepts under development. HECC staff have been engaging with key partners in recent months to refine the legislative concepts that the agency will pursue in the 2027 legislative session. Commissioners heard about several legislative concepts that will advance in the process:
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Campus Sexual Misconduct Legislative Concept: This concept aims to support institutions in making confidential advocacy services more widely available to students, considering the serious constraints facing these organizations in recent years.
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Student Complaints Legislative Concept: This concept seeks to clarify and align statutory language that provides HECC authority to investigate certain student complaints, allowing HECC to appropriately prioritize or refer complaints to other entities when needed to ensure a fair and timely process.
The proposal to set aside a small portion of Oregon Opportunity Grant funds for a student emergency aid fund is still under discussion with partners.
Additionally, several LCs that were originally presented to the Commission in April are no longer continuing in the process. This includes the concept to consolidate financial aid programs and bolster the Oregon Opportunity Grant through the phase-out of the Oregon Promise program.
Updates on the legislative concept and budget development processes, along with opportunities for public input, will occur at public HECC meetings this summer and fall, including a report on a legislative concept related to student transfer in August.
 Photo by Allison Shelley/Complete College Photo Library
Oregon Makes Progress on Preparing for Workforce Pell
The Higher Education Coordinating Commission (HECC) is making progress on implementation of the Workforce Pell Grant in Oregon, as HECC staff reported to the Commission at its June public meeting. Workforce Pell, established through Congress’s passage of House Resolution (H.R.) 1 in 2025 – expands Pell Grant eligibility to support learners enrolled in short-term, career-focused training programs that meet defined quality standards and lead to industry-recognized credentials. On May 18, 2026, the U.S. Department of Education announced a final rule to implement the Workforce Pell Grant provisions, and a fact sheet on those final rules is available here.
Workforce Pell is an expansion of the traditional Pell Grant, designed for short-term career focused training programs lasting 8-15 weeks. These programs must be approved for eligibility before receiving Workforce Pell grants. The federal legislation that launches Workforce Pell gives some flexibility to state Governors to determine the types of programs at which learners may use Workforce Pell Grants in their states.
Some program eligibility criteria—such as whether programs align with requirements for high-skill, high-wage, and in-demand occupations and industries—are defined at the state level. Through the 2026 Oregon Talent Assessment, the HECC and the State Workforce and Talent Development Board recommended definitions of high-skill, high-wage, and in-demand occupations and industries for the purposes of Workforce Pell program eligibility. The Governor is currently reviewing those recommendations.
Workforce Pell goes into effect on July 1, but given the quick turnaround, many states across the U.S. are still in the process of preparing for the launch of this program, including Oregon. Oregonians will be able to benefit from these grants when state programs complete the process of meeting the state and federal requirements to become eligible. Learners apply for federal aid, such as the Workforce Pell Grant, through completion of the Free Application for Federal Student Aid (FAFSA).
Financial Sustainability Reports Describe Pressures Faced by Institutions
At the Commission's June 10 Funding and Achievement Subcommittee public meeting, HECC staff presented an overview of two HECC reports related to financial monitoring of Oregon’s public universities and community colleges, both based on financial data through FY 2025. The purpose of HECC financial monitoring is to support statewide policymaking guided by the goals and mission of public higher education in Oregon. The reports include an overview of the financial condition of Oregon institutions, describing trends in enrollment, state funding, and select financial ratios intended to assess the potential for financial instability. The presentation to the Commission began with a national financial outlook for higher education, noting that the three major credit rating agencies predict an unfavorable fiscal outlook for U.S. public higher education in 2026.
The analysis shows that most of Oregon's locally-governed community colleges are currently financially stable, but underlying pressures remain. The growth in operating costs, particularly personnel costs, places significant pressure on budgets. Enrollment trends are showing modest recovery since the pandemic, but remain below historical levels. The colleges are increasingly reliant on state funding as a primary revenue source, and an aging infrastructure represents a major financial challenge.
The corresponding analysis for Oregon's independently-governed public universities shows that while sustainability varies among the institutions, spending continues to grow faster than revenue, creating a growing structural imbalance for most of the seven institutions. Enrollment has steadied post-pandemic, but the long-term outlook remains challenging. State funding has helped improve affordability for many students in the recent past, but risks persist, particularly in serving nontraditional students.
Broader economic and policy factors—including inflation, federal policy changes, and shifting demand—are creating an increasingly uncertain operational environment for both sectors. Read the full reports below.
HECC Agency Updates its Organizational Structure to Encourage Learner-Focused Collaboration
We are pleased to share that the HECC is undergoing a realignment to our organizational structure to better promote the agency's cross-sector collaboration, innovation, and efficiency as we work to achieve state goals.
Our work increasingly calls for stronger connections across our functional areas, including integrated strategies, innovation, and sharing of ideas that center the needs of Oregon learners and to intentionally address the linkages between education and workforce needs. The HECC's current organizational structure has not changed significantly since the agency was first formed in 2013-15, while our mission and goals have evolved, and the opportunity for an update arose through strategic planning discussion. Starting in July 2026, HECC is beginning the first phase of a realignment process to update the organizational structure. As we make these changes internally, external partners may see some changes in titles and office names, but our key authorities and responsibilities—defined in rule and statute—remain the same.
The first phase of this plan clarifies the executive structure with a focus on the agency's key roles in strategic policy and funding, and in doing so, positions the agency to integrate initiatives, programs and policies in more effective ways. As we reported in a previous issue of this newsletter, some HECC workforce programs are already planned to transfer to the Oregon Employment Department (OED). Apart from those anticipated changes, this first phase of the HECC realignment does not reduce the size, employees, or budget of the agency, but it is intended to optimize our use of taxpayer-supported agency funding and improve internal processes. Among changes:
- The HECC will have two deputy directors reporting to the executive director: Ramona Rodamaker will serve as deputy director of the Programs and Policy Division, and Jim Pinkard will serve as deputy director of the Operations and Finance Division.
- The current leaders of HECC offices continue to lead their areas of work, with some adjustments in titles and focus, and with most HECC offices now housed in the two new divisions. The key HECC contacts for most external partners will remain the same.
- Julia Pontoni has been appointed to a new position in the Programs and Policy Division steering the reorganization changes and overseeing the integration of education and workforce strategies.
- Some programs that are currently in the Office of Workforce Investments (OWI) will shift to the Office of Community Colleges and Workforce Development (CCWD), coinciding with the planned transfer of some workforce programs (Title I and Workforce and Talent Development Board) to OED.
If any of our partners have questions on these changes, feel free to reach out to Ramona Rodamaker, ramona.r.rodamaker@hecc.oregon.gov.
Legislature Grants Request to Release Emergency Funds for Southern Oregon University
The Legislature’s Joint Emergency Board on June 17 approved the release of the first $7.5 million in emergency funds for Southern Oregon University at HECC’s request to address an urgent short-term financial shortfall. In the same week, SOU leadership released information to its community on its proposed Vitality Plan to achieve long-term fiscal sustainability.
In early 2026, it became clear that SOU faced a significant financial shortfall. To provide bridge stabilization in order to create time for restructuring and orderly transition planning, protect current students, preserve higher education access and prevent economic disruption in southern Oregon, HB 5204 (2026) included a special purpose appropriation (SPA) to the Emergency Board in the amount of $15 million General Fund to be allocated to the Higher Education Coordinating Commission (HECC) to provide SOU with short-term financial stability and address the projected operational funding shortfall. Several conditions were established to receive the SPA, including the submission of an operational plan to ensure solvency through June 2027 and the development of a plan for long-term fiscal sustainability.
At the June 15 higher education subcommittee meeting of the Emergency Board, HECC executive director Ben Cannon presented the HECC request for the first half of the $15 million appropriation, with the understanding that the second half would be requested in September. The HECC request included information on SOU’s updated financial modeling and operational plan through June 2027, planning for future delivery of higher education in southern Oregon, and the collaborative work that has been undertaken with SOU to date.
The Emergency Board approved the request on June 17 after discussion.
Next steps on SOU long-term sustainability
At its public meeting on June 18, the SOU Board of Trustees adopted a resolution directing staff to implement the SOU Vitality Plan. The board discussed the plan at length, and received financial modeling and forecasting, as well as an implementation plan and timeline. The plan envisions re-engineering institutional identity through steps that include a $20 million budget reduction, aspiration to broader partnerships with community entities and self-sufficiency for auxiliary units.
Read about the plan on the SOU website here.
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