By Megan Ingros
University of Kentucky School of Journalism and Telecommunications
University of Kentucky School of Journalism and Telecommunications
Three years after Midway College’s venture for a pharmacy
school in Eastern Kentucky fell short, the question remains: How much money was
lost?
Though the private institution won’t say, it has to file a
public report on its endowment, investments that produce income – but which
college officials discussed tapping, perhaps not for the first time, as the
pharmacy venture was falling apart.
The college’s 2012 report to the state Council on
Postsecondary Education showed a plateau in the endowment, which had been
growing steadily. That suggests the college may have tapped into the
endowment.
The latest report to the CPE, made April 1, showed an unrestricted
endowment a year ago of $9,021,339, an $1,361,306 increase from 2012.
From 2011 to 2012, reports showed an increase of only
$217,369, much smaller than the norm.
The figure for 2013 is an estimate, based on the average of the previous
and following years. The actual figure is not available because the state has
changed its rules to require such reporting every two years.
The college had to twice withdraw applications for
accreditation of the pharmacy school in Paintsville, 130 miles east of Midway,
because the accrediting agency said it would not be accredited. That had major
financial implications because in order to be accredited, the school had to
hire and pay faculty, starting a year in advance of its first application.
The Accreditation Council for Pharmacy Education was
concerned with the inexperience shown by the dean and didn’t see any proof that
there was an understanding of what it would take to run and build the school.
The ACPE also noted that the college had to show sufficient financial backing.
The building cost turned out to be double the initial $12 million pledged by
the Paintsville couple who launched the project. Also, at the time the college
had a debt of $10.5 million to PNC Bank, which denied the college’s request for
an additional loan.
The college tried to get the University of Charleston, which
closer than Midway to Paintsville, to keep the project going, but the pledge
was withdrawn. The project died, and President William Drake resigned at the
request of the college trustees in March 2012.
That fall, the college suffered an 18 percent decline in
enrollment from the previous year. It released 16 staff members, terminated
about a dozen faculty members’ contracts and suspended contributions to faculty
retirement accounts in order to balance its budget for the 2013-14 year.
Enrollment has since rebounded.
Midway College declined to offer any comment on the issue.
Vice President of Marketing and Communications Ellen Gregory said in an email,
“The project has been closed for many years. The college does not and will not
have any further comment on any issues related to the school of pharmacy.”
Robert King, president of the Council on Postsecondary
Education, said he was unsure of the project’s financial impact on the college,
but said, “I know currently they are back on solid footing.” King said the
college just went through an accreditation that came through with very positive
results.
Gregory said the college is moving on from the past and
leaving the pharmacy school behind. “Our most important focus remains on
providing the best possible education for our students, and despite recent
challenges, we are pleased with the progress that Midway is making,” she said.
The college will change its name to Midway University on July 1.
1 comment:
Well done... this issue has needed examination for some time. The college is under a bright new leadership, and while I understand Ms. Gregory's unwillingness to reopen old wounds, the actions of the former college administrators bears scrutiny.
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