One of the oldest universities west of the Mississippi and the second-oldest in the state — Iowa Wesleyan University — is closing its doors 181 years after they opened in 1842.
The private liberal arts institution’s 20 trustees voted unanimously Tuesday to close at the end of this academic year in May due to “a combination of financial challenges,” according to a news release.
Those challenges include increased operating costs “due to inflationary pressures”; enrollment trends; a “significant drop” in philanthropic giving; and Gov. Kim Reynolds denial "of a proposal for federal COVID funding.“
Advertisement
In a statement Tuesday, Reynolds said, “My thoughts are with the students, faculty, and staff who are stunned by this announcement, and the people of Mount Pleasant who have long revered the university as a pillar of their community.”
“The state is committed to supporting them during this time of transition,” she said. “I have directed the Iowa Economic Development Authority and Iowa Workforce Development to reach out to community and business leaders, and work together to keep the local economy strong.”
As to Wesleyan’s assertions her office denied it $12 million it sought in federal American Rescue Plan Act — or ARPA — funds, Reynolds said her office didn’t get a request until Feb. 3.
“As I’ve said many times, we endeavor not to spend one-time federal dollars on ongoing expenses,” Reynolds said, noting that upon receiving the Wesleyan request her office engaged an independent third-party accounting firm to gauge its financial health.
That firm found Iowa Wesleyan had obtained a $26.1 million loan from the U.S. Department of Agriculture using their campus as collateral, and the loan could be recalled in full as early as November 2023.
Wesleyan’s auditor also reported ongoing fiscal concerns, citing “significant operating losses and reduced liquidity raise substantial doubt about its ability to continue as a going concern.”
Daily News
Newsletter Signup
Delivered to your inbox every day
“Based on this and other factors, the independent accounting firm determined that providing one-time, federal funds would not solve the systemic financial issues plaguing the university,” she said, noting her office has had $122 million in requests from other universities and community colleges statewide.
“With this information, I made the difficult decision to not pursue the university’s funding request,” Reynolds said.
Older than Iowa
A gold banner announcing the Wesleyan closure on Tuesday was added to the top of the college’s website, which still urged student prospects to “schedule a visit,” learn more about its computer science major, and “experience Iowa Wesleyan.”
Some of its most notable alumni include famed astrophysicist and University of Iowa space pioneer James Van Allen and Peggy Whitson, a retired NASA astronaut.
“It is with deep sadness that we announce the board of trustees has made the heartbreaking decision to close our beloved Iowa Wesleyan after 181 years as an educational pillar in this community,” Iowa Wesleyan President Christine Plunkett said in a statement.
Iowa Wesleyan, established four years before Iowa achieved statehood in 1846, has been struggling to survive for years — alongside many of the region’s smaller private four-year institutions competing for a shifting demographic of students who are facing a changed and changing higher education landscape post-pandemic.
The campus in fall 2018 announced dire financial circumstances and potential closure — but found a path forward after seeking partners and government funding, including through the USDA loan.
In 2020, Iowa Wesleyan came close to partnering with a
Catholic school in Florida but abandoned that prospect after due diligence concerns from both sides.
Then in January 2021, Iowa Wesleyan and Southeastern Community College
announced a novel collaboration allowing both to continue operating separately while also offering “smooth, affordable academic pathways” between the schools.
Southeastern Community College — which has five campuses, including one in Mount Pleasant where Wesleyan is based — did not have news of the closure on its website Tuesday.
Plunkett started serving as interim Iowa Wesleyan president in 2019, when its past head Steve Titus announced his departure amid the campus’ shaky financial standing.
Iowa Wesleyan first found Plunkett in 2015 to serve as interim chief financial officer through a Registry for College and University Presidents, which functions as a kind of clearing house for academic administrators willing to serve in temporary roles.
Before Wesleyan, Plunkett led a struggling secondary school and then a battered private college in Vermont, both of which eventually closed due to financial challenges.
‘Just heartbroken’
Last week, Iowa Wesleyan’s wrestling program announced one of the nation’s top girl wrestlers had committed to the university, which launched both men’s and women’s wrestling programs in 2019.
In announcing the university’s closure Tuesday, Wesleyan officials said the decision came after an “intensive analysis of Iowa Wesleyan’s financial operations and considerable exploration of all feasible strategic alternatives.”
It comes despite enrollment growth, improved student retention, and success in efforts to address economic and workforce challenges in Southeast Iowa.
Those gains — including an uptick in students from 782 in fall 2021 to 878 this year — have not been enough post-COVID to ensure financial stability. And Plunkett on Tuesday said the campus now is focused on ensuring its “over 850 students have a smooth transition to another educational opportunity.”
Iowa Wesleyan has established four “teach-out agreements” so students can complete their programs on time and for a comparable cost. Those agreements are with William Penn University; Upper Iowa University; University of Dubuque; and Culver-Stockton College, with others possible.
“We know our action will be felt deeply by all Iowa Wesleyan University faculty, staff, students, families, alumni, donors, Mount Pleasant, and the entire region of Southeast Iowa,” board Chair Robert Miller said in a statement. “Like many colleges and universities nationally that have recently announced closure, IW has been confronted with many headwinds including increasing operating costs, declining numbers of high school graduates nationally, and insurmountable inflationary pressures.
“We have worked tirelessly to find solutions at all levels but to no avail.”
Miller said Wesleyan and its leadership is “disappointed in the lack of state support for this effort.
“All our indicators have been trending in a positive direction, but we needed funding to buy some additional time,” Miller said. “We are just heartbroken.”
When the university closes May 31, the USDA will take ownership of the 60-acre physical campus.
One of the oldest universities west of the Mississippi — Iowa Wesleyan University — is closing its doors 181 years after it’s founding in 1842.
www.thegazette.com
