Four years after investors stepped in to stave off the death of Myers University, which has educated adults in Cleveland since the 1850s, the institution -- now called Chancellor University -- once again faces an existential threat, this time at the hands of its regional accreditor. The Higher Learning Commission of the North Central Association of Colleges and Schools voted in late June to put Chancellor on "show cause" status, meaning that the institution will be shut down if its officials cannot persuade the accreditor within a year that it has ameliorated the agency's concerns, which relate to weak finances, conflicts of interest and poor student retention.
It has been a bumpy few years for the institution since 2008, when the Higher Learning Commission granted permission for Myers' buyers (led by the high-profile investor Michael Clifford) to transform it into Chancellor. Clifford had grand plans, including the naming of the institution's management school for Jack Welch, the former head of General Electric. (The management school has since been sold to another for-profit institution, Strayer University.) But it wasn't long before the institution was back in turmoil; in February 2010, the Higher Learning Commission gave it a show cause order, but the commission concluded by February 2011 that the institution had addressed its concerns. But quarterly reports filed by the institution triggered new concerns last February, leading to the new show cause order.
Chancellor University officials told Crain's Cleveland Business that the institution would get through the current crisis as it did two years ago. “Every member of the leadership team and the board of trustees would swear in a court of law, on the Bible and the U.S. Constitution that this institution is significantly better than it was when it got off show-cause” last time, President Robert Daugherty told the newspaper.
Fund raisers for schools, colleges and universities project that final numbers from the 2011-12 year will show a 4.9 percent gain in contributions, while 2012-13 will show a 5.9 percent gain, according to a survey by the Council for Advancement and Support of Education. In terms of projections for next year, public four-year institutions are projecting gains of 6.5 percent, while private four-year institutions and community colleges are both projecting gains of 6.1 percent. Private schools are projecting an increase of only 5.1 percent.
After years of litigation, Fisk University has finalized a deal to sell a half share in its renowned art collection to the Crystal Bridges Museum of American Art, The Tennessean reported. Fisk will receive $74 million to give the museum the right to display the art for two-year periods, rotating with periods in which the art will reside at Fisk. Many in the art world have criticized Fisk for selling the collection, which was donated by Georgia O'Keeffe in 1949, with a request that it never be sold. Fisk, a financially troubled historically black college, has said that it needs the money to stabilize its budget.
Urban College, a two-year institution in Boston that serves low-income and immigrant women, will stay open for the fall, The Boston Globe reported. The college had been on the verge of closing, but has received enough donations to assure operations for the fall semester, while efforts continue to place the institution on a more stable financial footing.
As institutions struggle to “do more with less,” business officers' annual meeting focuses increasingly on evaluation of which programs -- including academic departments -- are making and costing money and reallocating from one to the other.
Bain & Co. on Monday published a report and a database that the consulting company says show that a third of colleges in the country are on an unsustainable financial path. The report by the company, which has been increasing its profile in higher education by advising college and university administrations on where and how to restructure their budgets, argues that institutional debt is too handily outpacing revenues and educational expenditures.
Protesters gathered on Saturday at Colby College and called for the resignation of Bob Diamond, chair of the college's board of trustees -- and until recently, chief executive officer of the British bank Barclays, which is embroiled in a interest-rate fixing scandal. Diamond resigned from his position at Barclays on July 3, a week after the bank was fined $450 million for attempting to fix the interest rate at which London banks lend to each other (abbreviated Libor) to profit on trading and also to make its borrowing costs look better during the financial crisis.
Protesters also wanted the college to say that millions of dollars in donations to the college came from alleged illegal profits he accrued while at Barclays. According to the Kennebec Journal, Diamond, a 1973 Colby graduate, donated about $14 million in recent years.
Michael Kiser, vice president for communications at the college, said the protesters were allowed to meet in front of the campus's Diamond Building, which was built after Diamond gave $6 million toward the construction of a social sciences and interdisciplinary studies building in 2003. He said the protest was not indicative of the larger Colby community's response to the scandal, adding that some alumni have contacted the college with questions, but not complaints.
Kiser said the protests don't reflect the college's stance, either: "We don't see any change in Bob's relationship to the college," Kiser said. "He's a stalwart alum."
The Memphis College of Art, a private, nonprofit institution, is experiencing severe financial problems, The Commercial Appeal reported. The college's board has declared financial exigency, laid off four faculty members and announced plans to sell much of its art collection. Officials believe that the cuts have turned things around, and say that the budget is now balanced. But the budget for 2012-13 is down 28 percent from the budget for 2011-12.