GREAT FALLS — The University of Providence is facing what officials describe as severe financial challenges, prompting the school’s Board of Trustees to consider a formal declaration of financial exigency — one of the most serious steps a university can take during a budget crisis.
Interim President Caroline Goulet says the roots of the situation stretch back years, when Providence Health System routinely subsidized the university’s operating deficit.
“For years, they were subsidizing our budget… and so for years, we did not really think twice about it,” Goulet said. “It was part of our annual budget approval where we would project revenues and expenses and subsidy.”
That arrangement is scheduled to end in December 2027 and will not be renewed as Providence Health addresses its own financial challenges, leaving the university responsible for covering what Goulet says has been an annual deficit of roughly $8 million.
As expenses continued to rise and enrollment increases failed to meet expectations, the university began a series of cuts — including operational reductions, unfilled positions, and a small reduction in force earlier this fall.
But even with those steps, Goulet says the institution could no longer wait.
“One thing that is quite clear is if we don’t address it now, it will be too late,” she said.
Financial exigency is a formal declaration that an institution is in a financial crisis significant enough to require rapid restructuring, program reduction, or personnel cuts. Goulet emphasized that the declaration is serious — but not a sign the school is closing.
“It is not a declaration of closure. It is not a declaration of bankruptcy,” she said. “It’s a declaration that we have a problem, we know we have a problem, and we’re doing what needs to be done to address it so that we can be here in the future.”
Goulet said the designation would give UP the ability to move more quickly than normal university governance allows.
“Nothing is off the table,” she said. “We need to be quick. We don’t have time to dwell on problems. We just need to be able to act.”
A task force of deans and faculty chairs is currently reviewing every academic program, including those with chronically low enrollment, to determine which programs are sustainable. Similar evaluations are happening across departments, including athletics.
Despite the seriousness of the crisis, Goulet said she believes the university can emerge stronger.
“Many universities have gone through exigency… and then they come out of it stronger. And that’s our hope,” she said.
She added that the university will need support from students, alumni, and the Great Falls community.
“We do need support and it’s not necessarily financial. Support could mean send us your kid to college,” Goulet said. “Talk about the university and the value of the education at the University of Providence.”
Goulet said she is committed to staying through the process.
“There’s no guarantee. But there certainly is hope,” she said. “I have faith that we’re doing the right thing and we’ll be able to get out of this.”
The Board of Trustees is expected to vote on whether to declare financial exigency in December. University leaders say more details on restructuring and next steps will be shared with students and employees in the coming weeks.
