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Institutional Closures and Mount Ida College AAC Meeting April 24, 2018
Institutional Closures and Mount Ida College Closures and Mergers: National Landscape Within 10 years: As many as half of all U.S. colleges and universities will find themselves bankrupt or shuttered. (Clayton Christensen, Harvard Business School) Past 10 years: (Moody s Investor Service) 5 U.S. college closures per year on average 2 3 mergers per year on average Forecast: (Moody s Investor Service) Tripling of closure rates for small colleges / universities Doubling of merger rate 2
Institutional Closures and Mount Ida College Closures and Mergers: Massachusetts Context In MA: 15 closures/mergers over past 5 years 5 completed institutional closures Sanford Brown College; Marian Court College; Le Cordon Bleu; ITT Technical Institutes; and New England Institute of Art 4 completed closures due to mergers School of the Museum of Fine Arts; New England College of Acupuncture; Boston Conservatory; and Episcopal Divinity School 3 pending institutional closures University of Phoenix; Atlantic Union College; and Mount Ida College 3 pending closures due to mergers Andover Newton Theological Seminary; National Graduate School of Quality Management; and Wheelock College 3
Institutional Closures and Mount Ida College MA Closure Notices (Or Lack Thereof) Range of Notice Received from Institutions From nearly 3 years prior to closure at best (e.g., Le Cordon Bleu) To almost 3 weeks after closure at worst (e.g., Marian Court College) (But even closures with prolonged notice not without challenges) Most Challenging Closures: Sudden, Without Notice Institutions vote to close and either publicly announce closure or close their doors prior to any notification to or discussions with DHE Institutional staff abruptly terminated Little advance thought given to transition options for students 4
Institutional Closures and Mount Ida College Current BHE Closure Authority: Regs If an institution knows that it may close, or if it is planning to merge with another institution, it shall: so notify the Board and follow appropriate procedures as far as possible in advance of the closure or merger; and shall arrange, in association with the Board, to safeguard the needs of students by: a. organizing educational transfer opportunities; and b. ensuring the preservation of student records. 610 CMR 2.07(3)(f)(2) and 610 CMR 2.08(3)(f) 5
Institutional Closures and Mount Ida College Current BHE Closure Authority: Policies & Procedures DHE Closure Policy Closure Guidelines* DHE expectations, steps for closing including notice requirements (e.g., notice of intent to close; notice of closure) and ongoing communication requirements with DHE and AGO Closure Template* Detailed plan including: enrollment and employee data, transfer options and/or teach-out plan, physical and fiscal resources, student services, student record preservation, and public communications DHE staff work with the institution to revise, finalize closure plan before approval * Posted on BHE s website: http://www.mass.edu/foradmin/closures/home.asp 6
Institutional Closures and Mount Ida College Mount Ida College Closure: Timeline February 25: DHE learns of Mount Ida s (MIC) proposed merger with Lasell College through press coverage. February 26: DHE sends letter to both institutions reminding them of closure responsibilities and requests meeting, scheduled for March 26th. March 23: DHE meeting canceled by request of MIC and Lasell representatives when, DHE later learned, the merger fell through on March 22. April 5: Having received no further communications from MIC, DHE staff request status update from MIC counsel, amid media reports of impending deal with UMass. April 6: DHE staff learn of MIC s closure through press coverage. 7
Institutional Closures and Mount Ida College Mount Ida College Closure: Timeline April 10: DHE sends letter to MIC requesting immediate compliance with BHE closure policy (e.g., submission of closure plan and proposed transfer options for MIC students) and meeting. April 12 and 16: MIC submits first draft of requested documents. April 17: DHE staff attend college fair at Mount Ida to answer questions from parents, students, and faculty. April 19: DHE staff meet with MIC representatives and provide extensive feedback and guidance on documents submitted to date and on adequacy and variety of transfer options presented by Mount Ida. DHE staff has reviewed a first draft of the Mount Ida closure plan, provided substantive comments and requested additional information to be received this week. 8
Institutional Closures and Mount Ida College Mount Ida College Closure Plan DHE will approve MIC s closure plan once deemed complete. MIC has been cooperative, met all deadlines since DHE s April 10 letter. Good faith effort on 1st draft closure plan. DHE is focused on four areas: Multiple transfer options for students Easing burdens on students and requiring MIC to arrange for transfers (e.g., prepare and submit transfer agreements with other institutions) Ensuring appropriate arrangements for newly admitted students Providing students with increased & continuing access to academic counselors (even after MIC formally closes) 9
Institutional Closures and Mount Ida College Mount Ida College Closure: Challenges MIC specialized programs that do not have equivalents at other institutions: A.S. in Funeral Services B.S. in Funeral Home Administration B.S. in Photography MIC programs that do have equivalents at other institutions but lack capacity for additional students: A.S. and B.S. in Dental Hygiene A.S. in Veterinary Technician B.S. in Veterinary Technology DHE to MIC: hard-to-map programs must be prioritized. Where BHE approval is needed for new degree programs to accommodate MIC students, DHE will expedite institutional applications once received (where appropriate). 10
Institutional Closures and Mount Ida College Mount Ida College Closure: UMass UMass plans continue to evolve re: use of MIC campus BHE has no jurisdiction on UMass purchase, financing of land, or on allocation of resources between and among UMass institutions UMass Board responsible for assessing such proposals in light of what is in best interest for UMass system BHE has clear jurisdiction on: Approving the public higher education institutions use of property (e.g., branch campus / off-campus programming) Program approval: BHE has exclusive degree-granting authority (e.g., vet tech proposals) 11
Institutional Closures and Mount Ida College Mount Ida College Closure: Complaints Complaints from students, parents, faculty, staff, others: 128 (as of April 23) General categories: 1) limited information on transfer options; 2) sharing stories and opinions on purchase and closure; and 3) students in specialized programs. DHE staff has responded to all complaints received as of April 20. Follow-up is being conducted, as necessary. DHE email address specific for Mount Ida inquiries: MountIdaComments@dhe.mass.edu DHE webpage with updates on the closure: www.mass.edu/mountida 12
Institutional Closures and Mount Ida College Institutional Closures: Next Steps? DHE staff continue to work with Mount Ida to finalize closing plan 1 to 3 weeks; rolling approvals BHE to be prepared for expedited program and other approvals (June/summer) Program approval requests from public/private partnering institutions Review of UMass approvals as property use plan continues to evolve (e.g., satellite campus / off-campus programming; program approvals) Review BHE existing closure policies Long-term FY19 strategic planning 13
