wfn.org | Mary Holmes College on shaky financial footing

[PCUSA NEWS <PCUSA.NEWS@ecunet.org>]

Note #6872 from PCUSA NEWS to PRESBYNEWS:

28-September-2001
01356

Mary Holmes College on shaky financial footing

Mississippi school needs increased enrollment, improved facilities and
stronger leadership

by Evan Silverstein

TEMPE, AZ - Presbyterian Church (USA) officials received a gloomy report on
Friday concerning the financial health of church-related Mary Holmes
College.

The two-year racial-ethnic school in West Point, MS, suffering from low
enrollment and classrooms in need of costly renovations, faces a "very
serious" financial problem, according to Duncan Ferguson, the denomination's
associate director of the Office of Higher Education.

"I come to you with somewhat of a heavy heart in regard to this report,"
Ferguson told the National Ministries Division committee. "What we have here
is an institution that's in very serious difficulty."

Ferguson, who recently visited the school with other PC(USA) staff members,
said a 2000-2001 audit report indicated serious financial problems at the
109-year-old school. He said enrollment for the fall semester increased but
fell short of the college's expected goal of at least 300 full-time
students. He said this forces Mary Holmes officials to reduce spending in
order to obtain a balanced budget for the current academic year.

"Enrollment is very important for an institution like Mary Holmes," Ferguson
said. " Because well over 60 percent of revenues come from admissions
(tuition). They don't have an endowment."

He said the college experienced some success in developing new funds, but
such efforts need to be "more innovative, more systematic and more focused"
in both annual and capital fundraising.

Mary Holmes must continue "building linkages with the West Point community
and the major industries in the Tri-County area," Ferguson said. "A
conversation with the state government may also be helpful."

Ferguson said the academic program there remains "relatively stable," but
the institution suffers from outdated technology and poor library
facilities. A need for a senior financial officer, as recommended by a
consulting firm, still exists but insufficient funds prevents hiring
someone.

Ferguson said there are some concerns pertaining to the school's academic
situation, however. He said the Southern Association of Colleges, which
recently visited the school, is concerned about the financial condition of
Mary Homes and that the college does not own its own property. He said
another problem is that the college's accreditation is currently on
probation and under review.

"It would be appropriate to modify the curriculum and make these
modifications an integral part of the marketing strategy," Ferguson said.

He said Mary Holmes' mission continues to be "compelling" with potential for
a "viable institution."  But he said the future may depend on "buying some
time" with a substantial loan that would eliminate the debt and provide
financial resources to implement a strategic plan.

Ferguson said a loan could be linked to the transfer of  the property,
however, he added that the risk is "that it may not be possible to finance
(a loan) and pay it back in a timely way."

He said there is also a need for stronger leadership "in order to move the
institution into the future." Ferguson said that a merger with a sister
institution could be an answer for preserving the school, a suggestion made
a couple of years ago when PC(USA)-related Sheldon Jackson College was in
financial disarray.

In other PC(USA)-related school news:

The outlook for Sheldon Jackson College, close to shutting its doors two
years ago, is now on the upswing, according t o a report Ferguson provide
the National Ministries Division committee.

The PC(USA)-related liberal arts college, situated in Sitka, AK, has 17
campus buildings and original grounds that have been nominated to receive
historic landmark status. If landmark status is granted, Sheldon Jackson
would be eligible for additional funding to undertake important and
necessary maintenance and renovations, according to the report.

The financial position at Barber-Scotia College continues to improve. The
Concord, NC, institution has realized a 10 percent increase in net assets
and their capital campaign successfully ended $1 million over its $5.1
million goal. The school also experience an 11.6 percent increase in
enrollment during the fall 2000 semester.

Presbyterian Pan American School, which serves middle and high school-aged
students, has achieved a balanced operating budget for the fourth
consecutive year, the report said. Revenues for the secondary school in
Kingsville, TX exceeded $2 million and expenditures were under that amount.
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