Gopal calls for takeover by another state university
By Laura D. C. Kolnoski
OCEANPORT – Last Friday, Gov. Phil Murphy formally requested an independent investigation into the “financial emergency” at New Jersey City University (NJCU), a public college headquartered in Jersey City with a one-year-old campus on Fort Monmouth. On Monday, State Sen. Vin Gopal, (D-11), chairman of the Senate’s Education Committee, called for a different state university to “take over” the Oceanport campus.
Many were stunned by the June 27 announcement from the school’s board of trustees that NJCU is facing a multimillion-dollar deficit. Layoffs began immediately, including Michael Edmondson, Ph.D., dean of the school’s Fort Monmouth campus. NJCU’s first female president, Sue Henderson, resigned the same day.
Murphy’s letter to Acting State Comptroller Kevin D. Walsh cited the governor’s, “grave concerns with the financial standing of New Jersey City University.”
“According to news reports, the University went from an approximately $108 million surplus in 2014 to an approximately $67.4 million deficit with $156 million in debt. These figures, if true, are deeply troubling and require an immediate, independent investigation,” the letter continued.
While acknowledging the “harsh realities” of the impact of COVID-19, with colleges and universities facing enrollment declines and tuition revenue shortfalls, the governor’s letter stated, “The troubles at NJCU appear to pre-date the pandemic and stretch back nearly a decade. A university facing significant financial challenges will struggle to continue providing the high-quality education its students deserve if it can remain open at all. As a public university, NJCU is accountable to our state government and the residents of New Jersey.”
Murphy cited news reports that the university’s 2014 $108 million surplus “vanished within a year due to $114 million in pension liability and another $34 million in bonds issued towards a greater expansion venture that reportedly cost $400 million.”
“The fiscal mess at NJCU is statewide and alarming, and I join the governor and others in calling on the State Comptroller to investigate New Jersey City University’s finances,” Gopal stated in a release. “NJCU laid off a number of employees at the Fort Monmouth campus with no heads up to me or other local leaders… This is completely unacceptable. I have spoken to the governor’s office, Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin on the importance of NJ working to bring accountability to public universities like NJCU, and to help protect the future for the students at their Monmouth County campus.”
While NJCU officials declined to comment on Gopal’s statement, Joseph F. Scott, chairman of the NJCU board of trustees, issued the following statement: “We welcome any additional review of the university’s financial situation as we work collaboratively with our partners in government, labor, and our student, faculty and staff community to move our institution onto solid ground and set it on a path to future sustainability. We believe deeply in transparency and openness. NJCU provides educational and economic opportunities to a vulnerable population that would not be likely to receive them anywhere else.”
Statistics show NJCU students have a median annual household income of $42,000. The next closest peer institutions are Kean University and William Paterson University at $76,300 and $84,600, respectively.
The Two River Times received a statement Aug. 9 from Ben Durant, NJCU chief financial officer, disputing the figures used by another news organization, citing the findings of First Tryon Advisors, an external financial advisory firm, which stated, “The article is clearly conflating two concepts (Surplus versus Net Position), and inaccurately depicting the financial activities between 2014 and 2021. While the language refers to a surplus, the numbers quoted are referring to the university’s Net Position, which includes debt, expendable resources, and non-liquid assets like investments in property, plant, and equipment. Net position is not a surplus… NJCU’s Net Position is currently negative ($61M),”
“It is completely inaccurate to attribute the entire $175M decline in Net Position to leadership,” the statement said.
“Classes and operations have not been impacted at NJCU at Fort Monmouth, and are fully operational,” said spokesperson Ira Thor, senior director of University Communications and Media Relations. “There have been classes throughout the summer and we are looking forward to classes beginning on Sept. 1 for a normal fall semester,” he noted.
“Students and parents can rest assured that classes will continue as scheduled. NJCU is fully committed to its location at Fort Monmouth,” Thor said.
After June’s financial emergency announcement, state Sen. Brian Stack (D-33) who is also the Union City mayor, asked for $10 million in state aid to keep the school operating. The request remains active.
In an email this week to The Two River Times, Gopal, who praised the institution during its ribbon-cutting ceremony one year ago, said, “I am supportive of that with a fiscal monitor and strong transparency and accountability. They are a state university, and the state should support them. But until they get their fiscal house in order, they need to let go of campuses outside of Jersey City. I am confident our other public universities who are in strong financial shape can take over Fort Monmouth operations.”
The Oceanport campus opened last semester in the fort’s Squier Hall with about 300 students, following a three-year renovation of the 1930s-style building on 22 acres, originally home to the U.S. Army Signal Corps. According to the governor, NJCU currently serves over 5,000 undergraduate students and thousands more in graduate school.
Bernard McSherry, Ph.D., founding dean of NJCU’s Business School and a Monmouth County resident, and Wanda Rutledge, Ph.D., assistant Business School dean, are overseeing the Oceanport campus, Thor said.
Oceanport Mayor Jay Coffey, who has repeatedly said NJCU’s Fort Monmouth campus is an asset to the borough and a “unicorn” as a school that pays local taxes, stated Monday, “We’re excited to have them there. We hope the financial situation doesn’t impact their status on fort property.”
The article originally appeared in the August 11 – 17, 2022 print edition of The Two River Times.
