Alderson Broaddus University Story Archives - West Virginia Public Broadcasting

Alderson Broaddus University To File For Bankruptcy

Alderson Broaddus University’s Board of Trustees has voted to file a petition with the United States Bankruptcy Court to liquidate the university’s assets under Chapter 7 of the Bankruptcy Code and plans to file that petition today, August 31,2023.

That is according to a letter filed with the West Virginia Public Service Commission (PSC) Wednesday by board chair James Garvin. The letter asks PSC to not authorize the termination of utility services until the filing of the bankruptcy petition and the implementation of the resulting automatic stay of collection efforts by creditors, including the City of Philippi.

The letter gives three reasons for the continued need for utilities on campus including an on-campus daycare center and the storage of volatile chemicals. The third reason is the need of a bankruptcy trustee to assess the university’s affairs.

The letter was filed as a response to PSC’s Aug. 8 order for the university to appear and show cause why electric, garbage, sewer and water services should not be terminated. The City of Philippi opened proceedings to terminate the university’s utilities July 27, claiming Alderson Broaddus owed the city more than $750,000.

Less than a week later on July 31, the Higher Education Policy Commission (HEPC) voted unanimously to revoke the private university’s authorization to confer degrees in the state. With more than $30 million in debt, HEPC determined the financial condition rendered the institution unable to create a stable, effective and safe learning environment for its students.

Universities across West Virginia have made accommodations for Alderson Broaddus students impacted by the situation that suddenly needed to transfer in the days and weeks before the start of the fall semester.

In the letter, Garvin said the HEPC order had eliminated the university’s normal source of tuition revenue, leading to the decision to file for bankruptcy.

“The absence of that revenue and the nearly total lack of financial liquidity necessary to operate have severely impaired AB’s ability to effectively wind down its operations as described in the HEPC Order,” the letter said.

The letter concludes asking PSC to deny the City of Philippi’s petition and direct the city to continue providing utility services until it can reach an agreement with the university’s bankruptcy trustee or until the U.S. Bankruptcy Court enters an order addressing the provision of utility services.

LOCEA Hears Alderson Broaddus Updates

The Chancellor of the Higher Education Policy Commission (HEPC), Sarah Tucker provided updates about the closure of Alderson Broaddus University to the Legislative Oversight Commission on Education and Accountability on Sunday during the Interim Session.

The Chancellor of the Higher Education Policy Commission (HEPC), Sarah Tucker, provided updates about the closure of Alderson Broaddus University to the Legislative Oversight Commission on Education and Accountability on Sunday during the Interim Session.

According to Tucker, Alderson Broaddus has been on provisional authorization because of finances with HEPC for a little more than a year.

Tucker said in late November or early December of 2022, the then-president of Alderson Broaddus told her he believed the board would vote to close the institution in the spring of 2023.

“While he wasn’t 100 percent certain, he was pretty sure that in the springtime, the board was going to be closing, or voting to close, the institution, that their finances were too out of control, that they were in too much debt that they couldn’t get see their way out of it, and that they would be closing not reopening for the fall semester,” Tucker said.

Since then, both the board and president of the university changed hands and that understanding between Tucker and the previous president did not become a reality.

“The new board made a different decision,” Tucker said “And that decision was that they were going to stay open for the semester. And so, at that point, we were to reauthorize them in June, based upon the finances that I had received, and very inconsistent financial information. There was simply no way that the commission was going to be able to do that.”

According to Tucker, Alderson Broaddus told HEPC they would be receiving funding from numerous sources including a $1.1 million tax credit from the federal government.

“We were actually told that that tax credit had been sent in by the IRS erroneously to the institution and the institution had mailed the check back and that they were expecting to receive the real check anytime soon,” Tucker said. “We were also told that the board chair was going to resign her position because she had become disfavored by other board members. And that as a result of that the institution would receive $500,000 in donations. Neither the IRS refund nor the $500,000 of donations have come to fruition at this point.”

Given the inconsistencies in the financial reports, HEPC asked the university for its cash flow projections for the year. The university had a cash flow of negative $500,000 with more than $30 million in debt.

“They have lines of credit at or near $5 million, which is the maximum. They owed the city of Philippi $835,000 has been reported in the press; it was a little bit less than that reported in the press,” Tucker said. “That’s because they didn’t report the July bill that they also missed. They owe Sodexo, which is our food service company, nearly $2 million.”

According to Tucker, the university made an initial payment to the city of Phillippi of $67,000 with money from a fundraising campaign. She also said the university has been asking for donations from alumni to make payroll.

“I can keep going on about some of these financial issues, but at the end of the day, we came to the conclusion that this institution was not going to be able to stay open for this semester. There was just no financial indicator that caused us to believe that they were going to be able to stay open,” Tucker said. “And once news broke of their finances, we became very concerned that their budget, which was based entirely upon their enrollment, was not in their enrollment projections were not particularly feasible, when that just simply wasn’t going to be able to be met, there was too much out there about how bad their finances were. So, we simply didn’t think they were going to make their enrollment projections.”

The HEPC came to the conclusion to vote to revoke Alderson Broaddus’ ability to award degrees, due to their inability to stay open through the semester.

Students who can graduate by December 31, 2023, are allowed to finish their education at Alderson Broaddus.

Also according to Tucker, eight to 10 Alderson Broaddus students struggle to be placed at a new college or university due to class size restrictions on first-year physician assistant’s classes.

“There is a cap on the number of students that you are allowed to take. All of our institutions which offer PA programs are at their cap for their first-year students,” Tucker said. “They have called their accreditor, to see if the creditor would be willing to let them have a few extra students so that we can get those students through so far those conversations have been unsuccessful.”

Higher Ed Provides Options For Alderson Broaddus Students

Chancellor of the Higher Education Policy Commission Sarah Armstrong Tucker said the dire state of the school’s finances brought this action by the commission.

Updated on Tuesday, Aug. 1, 2023 at 4:47 p.m.

Monday, the West Virginia Higher Education Policy Commission (HEPC) revoked Alderson Broaddus University’s authorization to award degrees in West Virginia.

These actions come as a result of the university’s outstanding utility bill of more than $775,000.

A few years ago, the private Baptist university was placed on notice by the commission over a financial shortfall. Last week, the City of Philippi informed the university that its utilities would be cut by Monday, July 31, if it fails to pay an outstanding bill of $775,598.70.

Chancellor of the Higher Education Policy Commission Sarah Armstrong Tucker said the dire state of the school’s finances brought this action by the commission.

“The commission did not believe, and I do not believe, that Alderson Broaddus would have been able to stay open for the course of the semester,” Tucker said. “As I [said] in the commission meeting, that is the worst-case scenario for their students.”

Student-athletes and international students will be arriving at the private school as soon as this week. Fall classes are set to start next month.

Tucker said students could lose federal aid and transfer credits if their school were to shut down mid-semester, so the commission stepped in.

“I’m certain that lots of students feel like this moment, maybe the worst-case scenario for them,” Tucker said. “But had we allowed the institution to bring students on the campus, and they failed in the middle of the semester, all of the money that students had paid, they would be out all of their federal financial aid.”

According to a statement from the Chairman of the Alderson Broaddus University Board of Trustees and Governors James Garvin, the board voted to develop a plan of dissolution for the university Monday night.

“The Alderson Broaddus Board of Trustees voted tonight to develop a plan of dissolution for the university in the aftermath of this afternoon’s decision by the West Virginia Higher Education Policy Commission. The Board and the administration will be communicating more tomorrow about its specific plans for assisting students, faculty and staff dealing with the changes resulting from today’s action by the HEPC.”

Since Monday’s action, schools throughout the Mountain State and beyond have offered assistance and options to the university’s roughly 800 students.

“Frankly, all of the private and public institutions in the state of West Virginia have stood up,” Tucker said. “They are all ready and willing to take students as transfer students and to make this happen as seamlessly as possible.”

The Higher Education Policy Commission worked directly with Davis and Elkins College and West Virginia Wesleyan College to offer scholarships and expedited enrollment for students who had planned to attend or return to Alderson Broaddus in the fall.

The following schools have issued releases stating their offerings for incoming Alderson Broaddus students:

West Virginia State University
- Will waive the application fees for Alderson Broaddus students and will provide an expedited transcript review to ensure admission for the fall 2023 semester.
Glenville State University
- President Dr. Mark Manchin has decided to award scholarships to all ABU students. In addition, GSU will guarantee housing placement and the school’s financial aid staff will help with equivalent financial aid packaging.
Davis and Elkins College
- Will provide students with a rapid admission process and offer the tools and resources for student success.
West Virginia Wesleyan College
- Will provide these students with fast and free priority applications and thorough transcript evaluations.
Point Park University in Pittsburgh, PA
- Those students who reach out to Point Park will undergo an expedited process that will include a transcript review, financial aid package and discounted housing.
Frostburg State University, Maryland
- Frostburg State University’s Office of Admissions will host a virtual event exclusively for AB students on Thursday, Aug. 3, from 3 p.m. to 3:45 p.m.
Shephard University
- AB students can apply to Shepherd for free and get priority transcript reviews to assess how many college credits may be applied toward their degree process. Shepherd is also guaranteeing on-campus housing availability and that any outside financial aid awarded to students, such as federal loan and grant programs and private scholarships – will be honored.

An Elusive Songbird And HEPC Votes To Close Alderson Broaddus This West Virginia Morning

On this West Virginia Morning, a Higher Education Policy Commission vote has put Alderson Broaddus University one step closer to closing its doors. Emily Rice has more.

On this West Virginia Morning, a Higher Education Policy Commission vote has put Alderson Broaddus University one step closer to closing its doors. Emily Rice has more.

Also, in this show, The Allegheny Front, based in Pittsburgh, is a public radio program that reports on environmental issues in the region. We listen to their latest story about an elusive songbird.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content.

Support for our news bureaus comes from Concord University and Shepherd University.

Caroline MacGregor is our assistant news director and produced this episode.

Teresa Wills is our host.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

HEPC Votes To Close Alderson Broaddus University

A Higher Education Policy Commission (HEPC) vote has put Alderson Broaddus University one step closer to closing its doors.

This is a developing story and may be updated.

A Higher Education Policy Commission (HEPC) vote has put Alderson Broaddus University one step closer to closing its doors.

During an emergency meeting Monday, the West Virginia Higher Education Policy Commission voted unanimously to revoke the private university’s authorization to confer degrees in the state, effective Dec. 31, 2023.

The institution is not permitted to enroll new students beginning with the fall 2023 semester. However, seniors scheduled to graduate at the end of the fall term may return to complete their degrees on schedule.

The commission took this action after receiving and confirming information that Alderson Broaddus University’s financial condition renders the institution unable to create a stable, effective and safe learning environment for its students.

“While I truly wish there had been a viable path forward for Alderson Broaddus University to continue operating, our foremost priority is to help their students continue their education as seamlessly as possible,” said Dr. Sarah Armstrong Tucker, West Virginia’s Chancellor of Higher Education, in a press release. “We have been working with other colleges and universities in the state, and we are grateful to have institutions that are eager to help these students transfer and complete their degrees. The Commission takes its role in authorizing private institutions to operate within West Virginia very seriously. This is a role that the Legislature entrusted us with to safeguard students, and that is exactly what we are doing.”

The meeting was originally scheduled to take place last week but was postponed at the request of Gov. Jim Justice.

HEPC Cancels Emergency Meeting To Address Alderson Broaddus University’s Financial Status

Updated on Thursday, July 27, 2023 at 5:20 p.m.

An emergency meeting scheduled Friday between Alderson Broaddus University officials and the Higher Education Policy Commission (HEPC), which oversees accreditation for post-secondary institutions, has been canceled at the request of Gov. Jim Justice.

Original story posted July 27, 2023

An emergency meeting has been scheduled Friday between Alderson Broaddus University officials and the Higher Learning Commission (HEPC) which oversees accreditation for post-secondary institutions.

A few years ago the private Baptist university was placed on notice by the commission over a financial shortfall.

On Wednesday a notice posted on the West Virginia Secretary of State website indicated Friday’s meeting is “to address an imminent financial loss or other imminent substantial harm to the public entity, its employees, or the members of the public that it serves.”

Earlier this week, the City of Philippi informed the university that its utilities will be cut by Monday, July 31, if it fails to pay an outstanding bill of $775,598.70.

The notice of termination would affect water, sewer, garbage and electric services across the entire Alderson Broaddus University campus if the bill is not paid. About 800 students attend the university.

The city’s action is another indication of much bigger problems at the private university. This week, officials revoked a decision to bring on a new interim president. The state’s higher education chancellor also visited the campus this week to assist students with transfers should the university shut its doors.

Friday’s Zoom meeting at 10 a.m. will address the university’s finances but the HEPC’s primary agenda is the “Revocation of Alderson Broaddus University’s Authorization to Confer Degrees.”

Updated on Thursday, July 27, 2023 at 3:20 p.m.

On Thursday afternoon, Gov. Jim Justice issued the following statement regarding Alderson Broaddus University:

“I’m calling on the HEPC to delay this emergency meeting because no one wants to see this university close if there’s a way to avoid it. It may very well be inevitable, but we’re going to try really hard to find a pathway,” said Justice.

“I’m going to meet with the HEPC, AB leadership, and legislative leadership to make sure we exhaust every single avenue we can before drastic action is taken. It’s simply too important, not only for this prestigious university and its alumni, but also for the entire community of Philippi and Barbour County.”