Peninsula College declares financial emergency with $1.8 million shortfall
Published 10:25 am Thursday, February 26, 2026
PORT ANGELES — The Peninsula College Board of Trustees has declared a financial emergency for the second time in nine months as it works to address a $1.8 million shortfall in its budget halfway through the 2025-26 academic year.
The deficit is driven by lower-than-expected enrollment and ongoing funding challenges at the state level, the college stated in a news release.
The college’s 2025-26 operating budget included about $2.1 million in cuts due to reductions in state funding and other revenue constraints. Among the cuts were the closing of the Fort Worden campus in Port Townsend.
Despite the reductions, additional pressures — including continuing cuts at the state and federal levels — prompted the college to eliminate three additional staff positions. Further reductions are anticipated after the current legislative session ends on March 12.
“These decisions are not made lightly,” said Suzy Ames, the college president, in the news release.
“Our focus remains on protecting student access, maintaining academic quality, and positioning the College for long-term sustainability. I am committed to transparency and to working together as a college community during this challenging time.”
To balance the budget, about $800,000 will be drawn from institutional reserves and $240,000 will come from the Peninsula College Foundation.
Washington’s funding model for community colleges hasn’t kept pace with inflation and rising expenses, while tuition caps limit revenue growth — creating a gap between the cost of educating students and the funding to do so.
“Like nearly every community college across Washington, we are navigating a very difficult fiscal environment,” Ames said.
“Without meaningful changes to how community colleges are funded, institutions like ours will continue to face difficult decisions that impact our students, employees and communities.”
