Saint Augustine’s University Cuts Staff By 50% To Keep Accreditation
Facing mounting debt and accreditation concerns, Episcopal-affiliated Saint Augustine’s University has eliminated 136 staff — about half its total workforce.
The Triangle Business Journal reported the cuts were made as part of an emergency plan by the historically Black liberal arts school in Raleigh, North Carolina, to become compliant with its accreditation agency, the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
The plan slashed 37 full-time faculty positions, 32 adjunct faculty positions and 67 other staff positions. The school also reported eliminating several “under-enrolled” programs in the effort to reduce its operating budget by $17 million compared to the previous fiscal year.
“While we recognize the seriousness of these financial adjustments, these decisions are essential for safeguarding the future of Saint Augustine’s University and the students we serve,” said Hadley Evans Jr., vice chairman of the board of trustees and chair of the finance committee, in a Nov. 23 blog post.
SAU has struggled to keep its doors open amid years of financial struggle and plummeting enrollment. According to Inside Higher Ed, the current fall semester welcomed only about 200 students, down from 700 the previous year, which was a drop from more than 1,100 students in the fall of 2022.
Meanwhile, the university’s mounting debts have led to payroll problems since Feb. 9, when delayed paychecks caused class cancellations. SAU was taken to court for unpaid work, and the IRS filed a $7.9 million lien against the university for delinquent taxes dating as far back as 2020.
Local news ABC 11 reported obtaining documents that revealed a dire financial situation, including $10 million considered unsupported in a 2021 audit, and $439,000 owed to its student health insurance provider, Wellfleet Insurance Company, which sued the school for unpaid premiums.
Last December, SACSCOC announced it would remove SAU’s accreditation. A failed appeal in February seemed like the end for the university as it moved all classes online to cut costs. Then in July, SACSCOC reversed course, keeping SAU on probation and giving it more time to become compliant.
“The university is actively settling outstanding balances with vendors while adjusting various contracts, demonstrating a steadfast commitment to restoring financial integrity,” the school said in its blog post.
“The momentum we are building is promising,” said Interim President Marcus H.Burgess, who replaced Christine Johnson McPhail after her firing last December. “Our ongoing efforts to stabilize the financial condition of Saint Augustine’s University are now showing tangible results — our community is responding positively, and we are excited about our future.”
SAU listed one major “milestone toward enhancing financial stability” as its financial agreement with the investment group Gothic Ventures. The university received a $7 million loan from Gothic, with access up to $30 million. However, local news WRAL indicated the loan comes with a hefty price tag — a 24% interest rate, 2% “loan management fee” and $75,000 “due diligence and documentation fee” — and SAU had to put up $100 million in real estate as collateral.
Saint Augustine’s University’s struggles reflect a larger trend in higher education. Nationally, there has been a downturn in enrollment, and one study showed serious losses for Mainline Protestant and Christian historically Black colleges and universities.
However, faith-based colleges and universities have generally fared better than their secular counterparts, with the former growing by 82% between 1980 and 2020, while the latter grew only 57%.
This piece is republished from MinistryWatch.
Tony Mator is a Pittsburgh journalist, copywriter, blogger and musician who has done work for World magazine, The Imaginative Conservative and the Hendersonville Times-News, among others. Follow his work and observations at twitter.com/wise_watcher.