Financial crisis deepens for Saint Augustine’s University

Struggling financially and fighting to maintain its accreditation, Saint Augustine’s University was dealt another blow last week when the Internal Revenue Service hit it with a $7.9 million lien for unpaid taxes.

In addition to the tax lien, the university has been accused of failing to pay $1 million to various vendors, including FieldTurf USA, which filed a $598,000 lien against SAU in December for alleged nonpayment for an artificial turf field the college had installed at its football field last year, local TV station WRAL reported.

Now the private historically Black university in North Carolina is scrambling to pay its bills—including making payroll—while fighting to keep its accreditation and dealing with a discrimination complaint from the recently fired ex-president.
 
A scan of Saint Augustine’s public tax filings shows that financial issues are nothing new at the university, which has struggled with a deficit for much of the last decade. Enrollment has also slipped from more than 1,350 in fall 2013 to fewer than 900 in fall 2022, a more than 23 percent drop, according to the latest numbers from the Department of Education’s Integrated Postsecondary Education Data System.
 
Interim president Marcus Burgess said SAU has hired a consulting firm to help with its finances, which the United Negro College Fund is paying for. The university has also met with the IRS and others as it addresses outstanding debt. Further, a forensic audit of SAU’s finances is underway. At a press conference last week, Burgess made it clear the university’s challenges are significant.

The potential loss of accreditation also looms large. A university spokesperson confirmed that SAU officials met with its accreditor Tuesday to appeal the loss of accreditation, though it will likely be a week before a decision is issued. But Burgess said that if the accreditation appeal is denied, SAU plans to contest the matter.

“If the appeal doesn’t go through, we will then litigate with SACSCOC,” Burgess said Monday.

Struggling enrollment 

SAU isn’t the only HBCU in NC experiencing a decline in enrollment, Greensboro-based Bennett College saw the largest decrease, down 76% amid accreditation issues going from 707 students in 2012 to 168 in 2022. 
 

Raleigh-based Shaw University, saw its student population halved – with enrollment dropping from about 2,200 students to a little more than 1,000 last year.

 
Johnson C. Smith University in Charlotte has seen its enrollment plummet from 1669 students in 2012 to 1093 in 2022, according to the U.S. Department of Education.  And, Livingston College in Salisbury has seen its enrollment drop from 1111 students in 2012 to 839 students last year.

These challenges reflect a broader trend in higher education, with nationwide enrollment declining by 13% over the past decade and HBCUs experiencing a 16% drop in enrollment during the same period.
 
As Saint Augustine’s University fights to overcome its financial turmoil and preserve its accreditation, the broader implications for the institution and the HBCU community remain uncertain.