CHARLESTON, W.Va. (AP) — Higher education officials called off an emergency meeting to address financial struggles at a small West Virginia university after the governor stepped in while the school made arrangements to pay off a whopping $775,000 in utility debts.
The Higher Education Policy Commission wanted to meet this week to address potentially revoking Alderson Broaddus University’s ability to award degrees. But after Republican Gov. Jim Justice made a plea for more time, commission spokesperson Jessica Tice said Thursday afternoon that the meeting had been canceled and the commission was “working with all the parties involved.”
The city of Philippi had sent a notice this week specifying the amount of overdue utility debt at Alderson Broaddus, a private school with an enrollment of less than 1,000 students. Fall classes are set to start next month.
According to the commission, next Monday was the deadline for the university’s utilities to be shut off if a payment had not been made.
The school announced Thursday it would pay the city $67,000 on Monday and follow a structured plan for regular payments to resolve the remaining balance. A university statement said the agreement with the city highlights a commitment “to open communication and mutual understanding.”
In asking for Friday’s meeting to be called off, Justice said in a statement that “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.”
The governor said he plans to meet with the commission and leaders of the university and the legislature “to make sure we exhaust every single avenue we can before drastic action is taken.”
Earlier this month the commission gave the university a provisional reauthorization through next June but said it had would reconsider if Alderson Broaddus did not meet the state’s criteria for financial stability. As part of that meeting, the commission required the university to have plans in place by Oct. 1 for the “teach-out” or transfer of current students as well as arranging for student transcripts and financial air records to be secured with a third party. Alderson Broaddus also was required to provide monthly financial reports to the state.
The school has been struggling financially for several years. Alderson Broaddus was placed on probation in 2017 by its accreditor, the Higher Learning Commission. The probation was lifted in 2019 although the school remained on notice to continue addressing areas of concern.
The commission also was told earlier this month that the U.S. Department of Agriculture had previously agreed to restructure a $27 million loan to the university to allow for a more flexible cash flow.
In April, the university sought alumni contributions to raise immediate funds. That month, Andrea Bucklew, the school’s provost and executive vice president for academic affairs, was named interim president after the retirement of James Barry.
Another state school, private Ohio Valley University in Wood County, went bankrupt and abruptly closed in 2021.
