From Wikipedia:
Sanskrit is spoken natively by the population in Mattur village in central Karnataka. Inhabitants of all castes learn Sanskrit starting in childhood and converse in the language. Even the local Muslims speak and converse in Sanskrit. Historically, the village was given by king Krishnadevaraya of the Vijayanagara Empire to Vedic scholars and their families. People in his kingdom spoke Kannada and Tuluva.
That is fascinating to know that some people converse daily in Sanskrit. I think the University should keep the department open just in case they have a visitor from the village some day.