Dive Temporary:
- Saint Augustine’s College is reducing half its workforce — 67 workers positions and 69 school positions — to cut back prices by $17 million and stabilize its monetary place, the establishment stated in a launch Saturday.
- The college — a non-public, traditionally black establishment in North Carolina — has additionally nixed “a number of” packages with low enrollment, it stated. Moreover, it’s working to repay excellent balances with distributors.
- The Southern Affiliation of Faculties and Faculties Fee on Faculties put Saint Augustine’s on probation in July. The transfer probably saved the college by reversing an earlier choice to withdraw accreditation fully. SACSCOC’s board plans to vote on subsequent steps for the college in December.
Dive Perception:
College management framed the choice to chop its worker numbers by 50% as needed to attain monetary stability.
“Whereas tough, we acknowledge the seriousness of our monetary challenges, and these measures are essential for our long-term sustainability,” Interim President Marcus Burgess stated in a press release. “We’re dedicated to reworking SAU right into a financially secure establishment that prioritizes the success of our college students and stakeholders.”
Saint Augustine’s posted a $6.4 million complete working deficit for the fiscal yr that ended this July and racked up a virtually $9.1 million deficit the yr earlier than, based on its newest financials.
Amongst its many fiscal challenges, web tuition and payment income fell by roughly half to $7.9 million between 2022 and 2024. Income declines have pressured the college to grapple with multimillion-dollar deficits at the same time as working bills fell from $42.1 million in 2022 to $27.3 million in 2024.
On prime of these challenges, Saint Augustine’s delayed the beginning of its fall semester after Tropical Storm Debby ravaged North Carolina and broken campus amenities.
Dropping its accreditation may have spelled monetary catastrophe, as it will have rendered the college ineligible to obtain federal Title IV monetary assist.
Within the college’s newest financials, an unbiased auditor cited the potential accreditation loss and liquidity pressures earlier than including a warning that the college may not be capable to proceed as a “going concern.” Auditors add such warnings when organizations face substantial threat of being unable to satisfy their monetary obligations or being pressured to liquidate.
A SACSCOC arbitration committee reinstated the college’s accreditation after the accreditor’s board voted to take away it final December. On the time of the reversal in July, Brian Boulware, chair of the college’s board of trustees, known as the choice a “pivotal second for SAU’s redemption and renewal.”
However the college stays on probation and should shore up its funds to be in full compliance.
“By addressing our challenges head-on, we aren’t simply complying with accreditation requirements; we’re laying the groundwork for a resilient establishment that prioritizes the wants of our group,” Mark Yates, the college’s chief working officer, stated in a Saturday assertion.
The college pointed to a number of milestones it has hit, together with reinstating pay and medical health insurance for workers, after the U.S. Division of Labor opened an investigation earlier this yr into Saint Augustine’s.
It additionally secured an settlement with a enterprise capital agency to ensure its operations for the 2024-25 tutorial yr. The financing takes the type of a mortgage of as much as $30 million that carries a 24% rate of interest, which one lending professional known as predatory.
It additionally stated donation ranges have remained constant, and it has obtained 700 purposes from potential college students for fall 2025, “signaling sturdy curiosity in its tutorial choices.”
