College of Santa Fe Deal Falls Through
Will there be a gaping hole in higher education?
By: 11/30/2008
The college is approximately $30 million debt and many considered the Laureate purchase to be the last possible route to avoid closure of the campus. Negotiations have been contractually exlusive with Laureate during an extended period of due diligence making it unlikely that CSF has other courters waiting in the wings. However, New Mexico Governor Bill Richardson and the Secretary of Higher Education Reed Dasenbrock are working to form a relationship with New Mexico Highlands University or University of New Mexico.
President Kirk expresses upbeat tones about the potential for a last minute state merger, but it's a hard sell to students and faculty who have been hearing optimism for months, while the situation continues to worsen.
The full text of Kirk's email is below:
Dear Faculty, Staff and Students,
Here is an update on the current negotiations.
It is now obvious that, because of their own financial realities,
Laureate will not be able to assume the debt required to retire our
bonds and fund the College. Over the weekend this information was given
to Governor Richardson, and he has asked the Secretary of Higher
Education to see if there is an arrangement in which the College can
become a state institution. There are two institutions involved in
discussions: UNM and Highlands. Highlands is very interested, and their
board has given preliminary approval. UNM has asked for financial
information, and we will be meeting with them next week.
We will know more about these possibilities next week. Further updates
will be made as they become available.
Sincerely,
Stuart C. Kirk
Despite Kirk's greeting being addressed to "students," as well as faculty and staff, students did not receive the notification by email until Friday, Nov. 28, well after reading about it the local news.
In a press release issued late on Nov. 26, Governor Richardson expressed his committment to resolving the crisis, saying "We need to explore every possibility to see if there is a way for it [College of Santa Fe] to continue to serve the citizens of Santa Fe and of New Mexico."
Secretary Dasenbrock was quoted as saying "We do think it is in the state’s and city’s interest that the College of Santa Fe continue to exist, and we think the state’s capital should have a four-year institution in it."
Over the Thanksgiving holiday, concerned students created a Facebook group in order to brainstorm ideas about how to support their school and contribute to a positive resolution. Kirk has promised a series of forums for staff, faculty and students, currently each scheduled for different times on Tuesday. Kirk is allowing 45 minutes to break down the situation for each group separately, presumably to address each group's specific concerns. But some are reading it as a divide and conquer move. Organizing via Facebook, students have scheduled their own strategy meeting on the night of Monday, Dec. 1 in advance of Kirk's forum. Students also spread among themselves the full contact information for the board of directors and are encouraging direct contact to express their frustration over the situation.
The administration is known to be frustrated by such student actions, but the students are determined to have their say, even as they work to satisfy end of the semester workloads in the face of an uncertain future.
Meanwhile, the Las Vegas Optic reports that outgoing Highlands University board of regents chairman, Javier Gonzales, claims the Las Vegas-based school is "very serious" about pursuing a takeover of CSF. Gonzales further said, in a statement that may not exactly infuse CSF students with vigor, that CSF would be similar to Highlands offshoots in Farmington and Rio Rancho.
News will be updated as it comes in.
Take a poll: What would be the worst aspect of the College of Santa Fe folding?
Comments (31)
Posted by Jack:
I am currently a senior attending the College of Santa Fe, and I can confidently state that this school is the poorest run business I have ever encountered. All I wanted was an education, so I put over $100,000 into this school. In return I have had four years that consisted of some extremely great classes, by wonderful professors, but that have been overshadowed by this political and financial fiasco that has wasted my time and money, and ruined my education. I am faced with several problems now, including the thoughts that I may not even get that piece of paper in May, and even if I do, if the college does not exist, what a great lot of good that diploma will do anyway. Real impressive: a diploma from a college that doesn't exist. Another problem: with the plain stupid classes that I was forced to take here (MAPS, etc.) many of my credits won't mean anything if I attempt to transfer. I don't have the money to retake classes at a real school. And because this school is $31 million in debt, there's no way I can be reimbursed, nor file a lawsuit and get anything out of it, as far as I can tell (If anyone knows how to sue this school and win my money back, please tell me. I'm not kidding). I have attended many of the meetings held by the president and many other top dogs, and at every meeting I was promised with a bright smile and a bucket of optimism that the school would never close, that Laureate would sign, that sports would save our school, that the Mouton Student Service Center would be in place months ago, and on and on and on. I have been lied to so often and so consistently that I can no longer believe anything that is said about this awful institution of supposed higher education. I will never again be tricked into an optimistic viewpoint. The College of Santa Fe should accept that they failed and they did it to themselves. I have seen nothing but stupidity among the higher ranks at this college. If I were Laureate, I wouldn't have even considered a deal. I'm trying to accept the reality of the situation, and in many ways I'm fine with the school closing. Just not yet. I was weeks away from getting all of the credits I needed for my diploma. That's the only reason I'm still here. Honestly, in the business I'm going into (film, like many students here) they don't care if you have a college education. They just care that you know your job thoroughly. And I do. Some from the school, yes (as I said I've had a few great classes), but mostly from my own experience working on film sets and interning. And yes, the college set these up. The MOV (Moving Image Arts) program is very strong at the school, headed by Jonathan Wacks, and with a solid foundation of superb professors.
cont'd
Posted by Vivi:
The Board owes it to the faculty, staff and students to dig deep into their pockets and float the school till May. That Board has been so incompetent, it is criminal. Not only have they hired a series of incompetent presidents and vice presidents not at all qualified for those jobs, but the entire upper management has been inexperienced at best, and criminal at worst. Upper management has been feathering their own nests (Lombardi should face criminal charges) and rewarding their friends and punishing those who've dared to speak out against their actions for years. The newest crew is no exception, perhaps they are the worst. It's a shame that good people are going to suffer great hardship because of the Board has been so checked out. This city will lose a wonderful resource (and yes, source of tax revenue) if the College closes. But it should only survive if there is a clean sweep of upper management.
Posted by XSFER:
The writing has been on the wall for many years now. While there are folks that are sad to see this happen, the reaction always stays the same. I'm hard pressed to find any benefit to the school remaining open when weighed to the amount of debt the school has managed to carry. The huge economic windfall is something I think one is hard pressed to argue. The simple fact is that school has had a gaping financial wound (exacerbated by incompetent handling at many levels) that can do nothing but bleed money. Kirk's response is typical of the administration by stating that it was Laureate's financial reality that prevented a closure of the deal. How absurd? It is however indicative of the fantasy land mentality that this college has in ignoring its own responsibility in this mess. I think it is also time to get real as far as the contribution that this college actually gives. Is it worth 30 million (if we assume those numbers are correct) in debt? Are people going to ignore the fact that it sounds like a bailout? Maybe CSF will have better luck going to the federal government and asking for money.
Posted by Squirrelhead:
The worst thing about CSF teetering on the brink of failure is the possibility that before HE ditches town, Governor Richardson will broker a deal that saddle the state college system with CSF's massive debt.
Because comments posted directly to the poll do not automatically appear here, SFR is posting poll comments below in the interest of encouraging broad dialogue.
As a long time employee of CSF and lover of education it is sad to hear of CSF's problems and that it might close but not surprising. This school has been in trouble, living on the edge for over twenty years or more. I think people just don't know that there have been years where the school came close to closing, or almost couldn't make its payroll or had to borrow money or sell land to keep going. To pretend that things were fine until the last few years is ridiculous.
I know that every administration I worked for busted their butts to keep it going and tried a lot of things to make it work.
I pray the state comes in and helps but I also salute the hundreds who worked hard to keep it alive including Brothers Luke and Mouton, Presidents Fries, Hanson, Lombardi and Kirk and everyone who made the effort.
Sometimes schools and businesses insist on going away so that something better can take their place.
As an employee of College of Santa Fe and in light of the message he waited to send until all faculty, staff, and students were gone for the day (yes, a fine “Happy Thanksgiving to all”) I’d like to address a couple of topics.
Recently released information to faculty and staff alerted us to the fact that there is just enough money in our coffers for a few more payroll periods. This is quite disturbing, especially to folks like me who practically live paycheck to paycheck. Faculty and staff show up everyday and do their job and continue to show up without information from the president and it makes me think that everyone is either really hopeful or really blind. And with the employment opportunities listed on the website and the number of students coming through on tours, topically it appears that we’re going to be okay, but with the financial situation, no one knows what’s real and what’s fantasy. Some prominent schools who aren't even facing a financial crisis such as our are taking steps to cut costs and ensure a future for its students, faculty and staff. For example, Michael Hogan, president of the University of Connecticut, turned down what would have likely been a $100,000 bonus in September; Rutgers University President Richard McCormick decided to donate $100,000 back to the university for financial aid after he received a performance bonus of the same size this summer; and Chancellor Mark Wrighton of Washington University in St Louis has voluntarily reduced his salary by 5%. Has Dr. Kirk thought to do something that thoughtful, in light of the fact that staff and faculty haven’t received a cost of living raise in almost two years and adjunct faculty make $538 per credit hour to teach a 16-week course, generally two or three times a week, for an average of 1-4 hours per class, depending on it’s schedule? I’m not math whiz but isn’t that about $8 per hour? Service and retail employees make more than that and, no disrespect intended, but most of them don’t have a bachelor’s degree, much less a masters and/or Ph.D.
In my opinion, if we need to lead the insurance companies to the people responsible for the demise of the college financial situation, give them Mark Lombardi’s and Linda Hanson’s phone numbers, and maybe add the Board of Trustees. If someone were actually policing the accounts and audits were done when they were charge, it would have been obvious that there were funds missing, misdirected, whatever, and that something needed to be done sooner.
Shame on you, Dr. Kirk, and everyone who was responsible for letting this happen to an institution that has stellar students, amazing faculty and hard-working, dedicated staff. If it were up to me, I’d revoke your WHOLE salary and let you see how the other half lives.
Has anyone thought how this might affect the evening and weekend program, too? It's being moved to Albuquerque, so I'll probably find something on-line to continue my degree with, but there are even MORE students at that campus?
Also, the students here have been kept SOOOOOO in the dark about the whole situation, and they probably didn't get the email because a lot of them don't use a CSF account for the email, but I know for a fact that we've been misled for a very long time, and that students who come for tours have NO idea what kind of condition the school is in. The deception is mindblowing!
Well, piss! Also, in reference to the Poll: "What would be the worst aspect?" Hmm, I dunno, the displacement of a thousand students?!
Posted by Santa Fe Arts Educator:
This entirely predictable disaster in primarily attributable to Stuart Kirk and the members of the board. The very unfortunate combination of arrogance, ignorance and dishonesty demonstrated by Kirk, and cosigned by the trustees made this outcome almost certain. The administration has sanctioned illegal raiding of restricted accounts and endowment income. Kirk has spoken with forked tongue about the situation. To students and parents, he has been optimistic, forecasting no threat to continued operations. To faculty and staff, Kirk has been the voice of doom demanding give-backs. Kirk was selected by his fellow board members, and given two main challenges...raise enough money to keep the school solvent and increase enrollment. He failed badly at both. The idea that new major sports teams would attract passionate art students was at best silly. Failing to hire a professional admissions director was criminal. Many of the best arts faculty members have been terminated and/or demoted. The interests of students have been ignored. For more tuition money, they now are allowed a smaller number of classes per semester. In addition, there are fewer courses to choose from and more students in each class. Charging more for a product with lower quality rarely results in having more happy clients. To the surprise on almost no one, enrollment is not up. The board has ignored years of declining enrollment, annual deficits, and misappropriation of available funds. It has hired a series of Presidents with no background or demonstrated interest in the Arts. It has honored neither its fiduciary responsibilities nor its fund raising obligations. The downward spiral of annual losses, fewer students and terrible mismanagement has persisted through the terms of three different presidents without board intervention. Indeed the self-perpetuating board has largely remained the same, choosing to neither understand the impending crisis nor actually take responsibility for what has been allowed to happen on its watch. For the students, who are indeed the only justification for the school to exist, this is massively unfair. They and their parents must be kept fully informed of the true financial situation. They must be shown their options. Full disclosure is absolutely required.
cont'd