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Bowie State University to lay off employees amid $18 million deficit
▲ 36 r/HBCU

Bowie State University to lay off employees amid $18 million deficit

Bowie State University will eliminate 79 jobs through reorganization, vacancies and layoffs as the university deals with its second multimillion-dollar deficit in two years.

Maryland’s oldest historically Black university is facing an $18 million deficit, President Aminta Breaux announced in a message to the campus. That follows last year’s $13.6 million budget shortfall, which was corrected through hiring delays and eliminating vacant positions, she wrote. Bowie State employs 1,175 workers, according to public data, so the workforce will shrink by about 6%.

“We recognize that this period may bring uncertainty and want to assure you that we are approaching each decision with care, thoughtfulness and deep respect for our faculty, staff and students,” Breaux wrote.

This year’s deficit stems from reduced state and federal funding, declining enrollment and rising operational costs, according to the message. Bowie State is not the only public university to be facing these headwinds — the University of Maryland, College Park, announced last month that it will cut up to 150 jobs and freeze hiring amid its own budget shortfall.

Lower enrollment projections at Bowie State, Breaux wrote, are impacting tuition, fee and auxiliary revenues, which along with rising costs create a “broader structural gap that will require thoughtful, sustained action.”

The HBCU saw a 27% decline in freshman enrollment between 2022 and 2025, from 1,170 first-year students to 844. It also saw the largest single-year enrollment drop among the University System of Maryland last year. Overall enrollment at the school fell 6%, from 6,353 students in fall 2024 to 5,970 a year later.

Bowie State last week announced a new direct-admissions program for students at Prince George’s County Public Schools, offering guaranteed admission to those who earn a 3.0 GPA or higher. The university will grant scholarships to more students thanks in part to a $50 million gift from billionaire philanthropist MacKenzie Scott last fall.

Breaux ended her message by thanking employees for their resilience.

“Together, we will navigate this period with care and purpose and position our institution for a strong and sustainable future,” she wrote.

https://www.thebanner.com/education/higher-education/bowie-state-university-layoffs-WI4HHYVEQNA6ZIFTSCWO26MUVA/

u/digitalplanet_ — 7 days ago
▲ 15 r/HBCU

Saint Augustine’s University has filed for Chapter 11 bankruptcy, according to court documents filed Monday in the Eastern District of North Carolina. 

Chapter 11 allows an organization to reorganize its debt so it can remain operating. 

"This structured, court-supervised process will enable SAU to organize its financial affairs in an orderly and transparent manner. The decision, made by the University’s Board of Trustees, reflects a deliberate and strategic step to advance the University’s long-term sustainability while addressing current financial realities," the university said via a press release on Tuesday. 

According to court documents, the school estimates that it has assets ranging in value between $100 and $500 million. 

The documents say the university owes between $50 and 100 million to creditors.

The IRS is the biggest creditor with the university owing $14.4 million to them, according to the bankruptcy filing. The North Carolina Department of Revenue is owed $1.6 million, with $7 million owed to other federal agencies including the Department of Education. 

The university also lists $3.3 million owed to the American Trust Company, which is associated with employee retirement accounts.

The university, one of the oldest Historically Black Colleges and Universities in the nation, has been fighting remain open amid multiple lawsuits and being millions of dollars in debt. 

“Even when i was there, you saw every semester things starting to go down from there,” said Adam Aiken.

Aiken left Saint Augustine’s University in 2023 after attending for about a year and a half. He said the university owes him about $8,000.

“The semester previously, I did get a check for my G.I. Bill…When it came to that second check, that’s when you started hearing the rumors about the school,” Aiken recounted.

He said he hopes he eventually gets all of his money back.

In January, WRAL Investigates reported the school began working with fair-lending advocate Self-Help to handle its debt.

The co-founder and CEO of Self-Help declined an interview. However, he did share a statement with WRAL:

“We believed in the mission and potential of Saint Augustine’s University when we provided the lifeline financing on Dec. 30, 2025. We still believe in the mission and potential of Saint Augustine’s...We feel this is a good and responsible path forward.”

SAU is operational and accredited as of the 2026 spring semester but said on Tuesday that it would not continue litigation related to its accreditation status, which is set to expire on May 15. 

"After careful evaluation, the Board determined that continuing litigation would not be a prudent use of resources. SAU will instead focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation," university officials said Tuesday.

According to the U.S. Department of Education, schools must maintain accreditation by a nationally recognized accrediting agency, like SACSCOC, to participate in federal student aid programs. Students cannot get federal financial aid when a school loses its accreditation.

The university said the decision was in cooperation with its accreditor to ensure "impacted students were able to graduate from an accredited institution."

Commencement is currently May 9, according to the school’s website. The university spokesperson confirms students who graduate this spring will graduate with accredited degrees. However, students who do not graduate this semester will need to transfer to accredited institutions.

In addition, the university announced that Interim President Dr. Jennie Ward-Robinson has stepped down. The Board has appointed Dr. Verjanis A. Peoples to be interim president.

https://www.wral.com/news/local/saint-augustines-university-chapter-11-april-2026/

u/digitalplanet_ — 15 days ago