Birmingham-Southern College, a private liberal arts institution in Alabama, will cease operations at the end of May due to financial challenges and the inability to secure state assistance, officials announced on Tuesday.
Following a unanimous decision by the College Board of Trustees, the announcement was made amidst legislative efforts to obtain a taxpayer-backed loan for the 168-year-old college, which recently stalled in the Alabama Statehouse.
Facing a national trend of declining enrollment and competition from larger institutions, numerous small private colleges are grappling with financial viability issues.
Situated on the west side of Birmingham, one of Alabama’s principal cities, the college has an enrollment of approximately 1,000 students.
Years of financial struggles and attempted interventions preceded the decision to close. The college suffered a $25 million loss to its endowment during the 2009 financial crisis and discovered significant accounting errors in budgeting federal student financial aid in 2010, leading to budget cuts and staff layoffs.
Moody’s Investors Service downgraded the college’s bonds due to revenue declines and heavy reliance on its endowment.
Efforts to secure state assistance, including a loan program created by the Alabama Legislature last year, were unsuccessful. Despite new legislation introduced this year, the college confirmed that insufficient support hindered its progress.
U.S. Rep. Terri Sewell, D-Ala., said “the failure of state leaders to do their part and provide assistance to BSC is particularly disappointing.”
“For years, Birmingham-Southern College has propelled our state forward by producing outstanding graduates, many of whom I have had the privilege of employing,” she added, noting her current legislative aide and chief of staff are alums of the school.
While supporters of the legislation aimed to preserve the institution and its impact on surrounding communities, Birmingham Mayor Randall Woodfin expressed disappointment at the closure, recognizing the college’s significance to the community.
Birmingham-Southern Provost Laura K. Stultz mentioned ongoing efforts to facilitate credit transfers for students affected by the closure, aiming to minimize disruptions to their academic progress.
The college’s history dates back to 1856 when Southern University was established in Greensboro, Alabama. A merger with Birmingham College in 1918 resulted in the formation of Birmingham-Southern, situated on a 192-acre campus west of downtown Birmingham.
