Peninsula College Budget Decisions, 2026

Peninsula College recently announced a series of instructional program changes and cost-saving measures as part of the College’s ongoing efforts to address significant financial challenges impacting community and technical colleges across Washington state.

President Suzy Ames shared the update with employees and students following months of collaborative review and discussion involving the Board of Trustees, President’s Cabinet, faculty leadership, and employees across the college.

Like many community colleges across the state, Peninsula College is facing a budget shortfall driven by rising operating costs and long-standing structural state funding challenges affecting Washington’s community college system. Over the past year, the college has already reduced its overall budget by approximately seven percent through measures including operational reductions, staffing adjustments, reduced discretionary spending, and the closure of the Fort Worden campus.

As part of the next phase of budget balancing for the 2026–2027 academic year, Peninsula College will discontinue or pause the following instructional programs beginning Fall 2026. Programs being discontinued include:

• Administrative Office Systems
• Paralegal
• Multimedia Communications

In addition, the Automotive Technology program will be paused beginning Fall 2026 while the college reviews curriculum updates and explores strategies to strengthen enrollment and long-term sustainability. The Family Life Education program will also no longer be offered.

“These decisions are incredibly difficult because they affect people, programs, and work our college community cares deeply about,” said Suzy Ames. “At the same time, we have a responsibility to ensure Peninsula College remains strong, focused, and able to serve students and communities across the North Olympic Peninsula well into the future.” Ames emphasized that the college’s work has remained grounded in transparency, collaboration, and protecting student learning wherever possible.

“Our priority is making sure students can continue progressing toward their educational goals,” Ames said. “We are committed to working directly with students in these instructional programs through teach-out plans, advising support, alternative course options, and transfer or program pathway guidance.”

Ames noted that not all programs initially identified for review were eliminated. The Construction Trades program, which had previously undergone additional evaluation, will continue and remain open for enrollment in Fall 2026. The program will debut this fall with updated curriculum, expanded lab space, and new equipment. Members of the community are contributing through donations to support the college in retaining Construction Trades.

The College also announced additional budget-balancing measures, including temporary furloughs for exempt and classified employees earning $90,000 or more annually beginning in July 2026. The furloughs are currently planned as a one-year measure intended to help stabilize operations while the college continues identifying long-term efficiencies.

Peninsula College leaders acknowledged that questions have arisen about the college launching new programs while reducing others. Newer initiatives such as Dental Hygiene, K–8 Teacher Education, and mobile workforce training programs were developed in response to documented regional workforce shortages. Dental Hygiene and mobile training programs are supported with external funding sources such as grants, community partnerships, and philanthropy, including support from the Peninsula College Foundation.

“Community colleges are being asked to respond to changing workforce needs while also navigating serious financial pressures,” Ames said. “This requires us to think carefully about sustainability, enrollment demand, and how we best fulfill our mission moving forward. Peninsula College is committed to making strategic investments in instructional programs that offer livable wage jobs on the Peninsula.”

General education instruction, workforce education, advising, tutoring, financial aid support, and transfer pathways remain central priorities as Peninsula College continues serving students throughout Clallam and Jefferson counties.

For more than 60 years, Peninsula College has served the North Olympic Peninsula through academic transfer programs, workforce education, basic skills instruction, and community partnerships focused on access, opportunity, and student success.

Students impacted by program changes will receive direct communication and individualized support from advisors and Student Services staff.

2026 Final Budget Decision FAQs

Budget Overview

Why is the college facing a budget shortfall? 

Peninsula College is currently facing a significant budget gap due to a combination of factors, including lower-than-expected enrollment, rising operating costs, and long-standing structural challenges in how community colleges are funded by the state. While tuition and state funding have not kept pace with inflation and required expenses, costs such as salaries, benefits, and utilities have continued to rise. At the same time, we are making strategic investments to assure we are offering instructional programs that provide livable wage jobs for our graduates. 

Because approximately 80% of our operating budget is tied to personnel, these pressures are especially difficult to absorb without impacting people. This is not the result of a single decision, but rather a convergence of broader financial realities affecting community colleges across Washington. 

What steps has the college already taken to reduce costs?

Over the past year, the college has already implemented significant cost-saving measures, including reducing the overall budget by approximately 7%. This included closing the Fort Worden campus, eliminating positions, shifting some programs to self-support, and reducing discretionary spending such as travel, software, and memberships. We have also used reserves and received support from the Peninsula College Foundation to help stabilize operations. These actions were taken with the goal of minimizing disruption to students while addressing immediate financial pressures. Despite these efforts, additional steps are now necessary to close the remaining gap. 

What is a financial emergency resolution and why was it declared?

The Board of Trustees declared a financial emergency to provide the college with the tools and flexibility needed to respond to the current budget situation. This is the second time in less than a year that such a resolution has been necessary, reflecting the seriousness of the financial challenges we are facing. Declaring a financial emergency allows the college to move more quickly in making decisions related to staffing and programs, particularly in collaboration with our faculty union. It is not a step taken lightly, but one intended to ensure the long-term sustainability of the College.

Instructional/Programatic Overview

Will there be reductions to programs or positions? 

Yes, the college identified program and position reductions as part of the overall strategy to balance the budget. This work was done in collaboration with the faculty union through established processes, including the RIF (Reduction in Force) framework. While we have worked hard to avoid impacts to instruction, we have reached a point where all areas must be considered. Decisions were guided by factors such as enrollment, program sustainability, and alignment with student pathways and community needs. We understand the weight of these decisions and are approaching them with care and transparency. 

Are instructional programs going away? 

It’s true that some programs won’t be offered starting in the fall (2026). These are: Administrative Office Systems, Paralegal, and Multimedia.  
Students impacted by these program changes will be contacted. Our priority is making sure students can complete what they started. That might look like a teach-out plan, alternative course options, or support in transitioning to a similar program. We are committed to ensuring they won’t be left without a path forward.

What is happening with the Automotive program?

The Automotive program is being paused, which means we won’t accept students for fall of 2026. We have created a survey for those students interested in pursuing the program while we explore options for revamping the curriculum and work to boost enrollment. Students can sign up to be on a list to express interest for future enrollment.

Automotive Interest Form

I heard the Family Life Education (FLE) Program will no longer be offered. Why does it have to close? 

The program generates limited revenue while carrying significant instructional and coordination costs. In addition, recent guidance from the State Board of Community and Technical Colleges now requires programs like FLE to meet professional-technical standards and charge full tuition if offered for credit. Our current program structure does not meet these requirements and implementing them would create additional barriers for the families we serve. 

We recognize the important role FLE has played in supporting parenting education and community connection in Clallam and Jefferson Counties. We understand the impact this decision may have on parenting co-ops and families who have participated in and relied on the program. This decision reflects financial and structural realities, not the value of the program or the people involved. 

I heard a rumor that the Construction Trades program is going away. Is that true? 

At one time the Construction Trades program was identified as a program that needed a closer look before a decision was made to close or keep the program. The program is currently being retained and new students may enroll for Fall 2026.

Why is the college starting new programs like dental hygiene, K-8 teacher education, and mobile programs while others were discontinued?

Programs like Dental Hygiene, K-8 Teacher Education, and our mobile workforce programs were developed in response to clear regional workforce shortages, community needs and creating training for livable wage jobs. They are also supported through a combination of external funding, grants, philanthropy, partnerships, and enrollment demand that make them more financially sustainable over time. In several cases, startup costs were supported by dedicated funding that could not be used to address the college’s general operating budget.

Only Professional Technical programs were cut. Why are general education classes so important?

General education programs are the foundation for student success. They build essential skills every student needs, including critical thinking, communication, problem-solving, and the ability to work effectively with others, regardless of their field of study. For community college students especially, these courses help create a strong academic foundation while building confidence and supporting long-term success. 

General education also keeps pathways flexible. Students can explore interests, change direction, or transfer to four-year institutions without losing progress because these courses are widely transferable and part of nearly every degree pathway. Just as importantly, general education helps students connect learning to real life by strengthening civic understanding, adaptability, and informed decision-making. 

We have reduced general education course offerings significantly next year, but we did not eliminate entire general education programs. The difference is that in areas like Humanities, we can reduce or rotate low-enrolled classes while still maintaining the overall program. Professional-technical programs work differently. Because most courses in those programs are required and there are often fewer elective options, low enrollment can impact the sustainability of the entire program. In many cases, there is not a way to address low enrollment simply by cutting a few individual classes. 

Equally important, general education courses also help support the financial sustainability of many professional-technical programs by generating enrollment and tuition revenue that helps offset the higher operating costs of specialized career training programs. 

Future Budget Sustainability & Accountability Overview

Besides furloughs and program cuts, what other strategies were used to address the budget?

The college explored several other cost-saving strategies. These included offering retirement incentives, making targeted staffing adjustments, using reserves responsibly, and increasing support through the Peninsula College Foundation. Moving forward, we will continue to examine operational efficiencies and identify opportunities for long-term sustainability. No single action will resolve the challenge, so a combination of approaches is necessary.

What principles are guiding these decisions?

This work is grounded in a commitment to transparency, equity, and student-centered decision-making. We are striving to ensure that no single area of the college bears a disproportionate share of the impact. We are also prioritizing open communication, sharing what we know as decisions are made, and acknowledging what is still evolving. Above all, we are guided by our mission to serve students and strengthen our communities.

How can I be sure I have the right information?

We are committed to ongoing communication through regular updates, campus meetings and written messages. Employees are encouraged to review communications carefully, attend opportunities for dialogue, and share feedback through appropriate channels. Your perspective is important and helps inform the work ahead. We will continue to provide updates as decisions are made, and more information becomes available.

What support is available for employees during this time?

We recognize that this period brings uncertainty and stress, and we are committed to supporting employees as best we can. Our Human Resources department, employee assistance programs, and supervisors are available to help answer questions and provide guidance. We encourage employees to take care of themselves and one another, and to reach out when support is needed.

Our website currently advertises open positions. Why are we hiring if we are furloughing and RIFing people?

Peninsula College has many funding sources. Some positions being advertised are funded by sources other than our operating budget, and some positions are critical to operations. Some positions are vacant but were not identified for elimination. Although we are experiencing a financial emergency, we still need to maintain normal operations as much as possible.

Will this be the last of the cuts?

Yes, likely, but only if we all work together to make the most out of next year. The goal is to only have to do furloughs for one year. That means the one-time savings we’ll experience through furloughs need to be made up with permanent changes. There are additional efficiencies we’ve started to identify that need more time to be fully examined.

Instructional program reviews and collaborative work with deans and faculty will ensure instructional programs are as efficiently structured as we move forward. Collaborative negotiations at the faculty bargaining table has the potential to identify further efficiencies.

In addition, Cabinet is committed to digging in closely to compare ourselves with our peer colleges to identify ways we could do administrative work more efficiently. This research will start this summer, and I will provide updates throughout the year. Our goal is to collect our learnings in a report that will be shared with the college community at the end of next school year.

Will there be accountability if our budgets are significantly over in the future?

Yes. Beginning July 1, the college will have accurate, clearly organized budgets and the tools to track them in real time. Budget managers will be responsible for monitoring and balancing their budgets each year. Electronic controls will be in place starting July 1 that will prevent every budget from being overspent. While these systems have not always been in place, recent work across the college has changed that. For example, Student Services has fully rebuilt and aligned its budget structure and has maintained a balanced budget since. Instruction has undergone similar work this past year, and its budget will also be fully organized and trackable starting July 1.