The Battlers at Alderson Broaddus have a big week ahead, trying to stave off financial peril.
University representatives have a key Monday meeting with state and higher education officials, a big utilities payment on Monday that’s part of a renewed debt plan, and a Tuesday meeting with a national accreditor that put the college on notice just a few years ago.
And that’s all before Wednesday.
“We have no additional comments at this time,” said the communications manager at Alderson Broaddus about the many challenges of the coming week.
The first day of the fall semester, August 21, is coming up fast for the century-old private college in Philippi.
The tension for Alderson Broaddus, its supporters and state officials has been whether the college has the financial footing necessary to ensure stability for students.
“What we’re talking about here is students,” state Senate President Craig Blair, R-Berkeley, said on MetroNews’ “Talkline.” “Those students there, we can’t afford to have them going into the classroom two weeks, two months and then find out that the institution is going to close down, have the utilities shut off. That cannot happen.”
Alderson Broaddus has been working to improve its financial situation as the start of school approaches. A two-pronged strategy includes encouraging more enrollment and drumming up donations from loyal supporters.
But the university’s financial issues are longstanding and deep.
Tax filings from 2020 showed Alderson Broaddus with more than $37 million in liabilities and -$904,424 in net income. Consolidated financial statements from 2020 and 2021 showed the college’s greatest debt is a $27 million community facilities loan with the U.S. Department of Agriculture, which has been a lifeline for struggling rural colleges.
West Virginia’s Higher Education Policy Commission expressed deep concern about the financial picture and twice delayed authorization for Alderson Broaddus. Earlier this month, commissioners agreed to provisional authorization if the college complies with benchmarks including regular financial reports, transfer plans for students and preservation of academic records.
The Higher Education Policy Commission had set an emergency meeting for this past Friday to revisit that decision, but Gov. Jim Justice called to delay it “because no one wants to see this university close if there’s a way to avoid it. It may very well be inevitable, but we’re going to try really hard to find a pathway.”
Representatives of the governor’s office, key legislators, higher education officials and representatives of Alderson Broaddus are expected to talk Monday about whether Alderson Broaddus truly has viable options.
“I personally think this is over unless some benefactor comes in with 10, 15 to 20 million dollars. You can’t do this,” Blair said.
Alderson Broaddus has an immediate financial challenge on Monday morning, when the university faces a deadline to pay a $67,000 check to the City of Philippi.
That’s because the city provided a termination notice over $776,598.70 in unpaid water, sewer and electric bills.
According to a filing with the state Public Service Commission, the last time Alderson Broaddus was current on its accounts with the city was August 2021. Since then, 23 months have been billed and Alderson Broaddus has made 12 months of payments, according to the filing with the PSC.
Philippi’s city council discussed the utility payment problem at a July 18 meeting and authorized termination.
The city and the college already had a payment plan, but city officials presented a new one that starts with the $66,953 due by 10 a.m. this Monday.
Alderson Broaddus sent out a statement last week describing the updated payment plan as a workable arrangement.
“The collaboration between AB and the City of Philippi highlights their commitment to open communication and mutual understanding,” Alderson Broaddus stated in a press release.
On Tuesday, Alderson Broaddus officials are having a meeting with the Higher Learning Commission in Chicago, part of the university’s regular comprehensive accreditation process.
In 2019, the commission placed Alderson Broaddus on notice over whether its finances were sustainable. In 2021, the commission sent Alderson Broaddus officials a letter determining that the institution “is no longer at risk of noncompliance.
That letter assessed the university’s resources as able to meet “but with concerns” its educational offerings, saying the fiscal position had begun to improve.
Now the assessment of the national accrediting body, right before the start of the next academic year, is crucial.
“The Higher Learning Commission has a meeting scheduled for August 1st to discuss the institutional status of Alderson Broaddus,” Corley Dennison, vice chancellor for academic affairs for higher education in West Virginia, said at a meeting this month.
“One possible outcome of that meeting is, HLC could place AB on probation. That ruling would require AB to post on their website, in a prominent location, a statement notifying students and their parents the probation status. This would only complicate enrollment.”