Central State University has been placed under fiscal watch by the Ohio Department of Higher Education (ODHE), as announced by Chancellor Mike Duffey. As Ohio’s sole public Historically Black University (HBCU), Central State is expected to implement a financial recovery plan aimed at stabilizing its financial situation and removing the fiscal watch designation within the next three years.
Financial Challenges and Support
Chancellor Duffey highlighted that many higher education institutions nationwide are facing financial challenges in the aftermath of the pandemic. The designation of fiscal watch is intended to provide Central State University with support to improve operational effectiveness and competitiveness.
Criteria for Fiscal Watch Designation
According to Jeff Robinson, a spokesperson for ODHE, Central State University met five out of eight criteria established under Ohio law, resulting in this designation. These criteria include requesting advances on state subsidies, experiencing delays in vendor payments due to cash shortfalls, and significant discrepancies between budget projections and actual financial performance.
Collaboration with State Authorities
The State Auditor will collaborate with Central State University, which is obligated to submit quarterly reports to its Board of Trustees and the Chancellor. Furthermore, ODHE will provide additional accounting support to the university.
Concerns from University Leadership
Morakinyo A.O. Kuti, who has been serving as president of the university since July, has expressed concerns regarding the institution’s financial circumstances since his transition. Following an initial review, Kuti indicated dissatisfaction with explanations provided by the former chief financial officer concerning the budget, prompting changes in the financial leadership.
Goals and Outlook
Kuti aims to lift the fiscal watch status within 18 months, attributing the university’s financial issues to insufficient operational management. He has conveyed a positive outlook on the university’s potential while underscoring the necessity for a solid financial foundation to pursue its objectives. Kuti has met with the American Association of University Professors – Central State University (AAUP-CSU) Executive Committee to address the challenges that lie ahead.
State Support and Importance of the University
Ohio Governor Mike DeWine, after discussions with Chancellor Duffey and Kuti, acknowledged the significant role of Central State University in Ohio’s higher education framework, particularly given its status as the only public HBCU and one of two land-grant universities in the state.
Enrollment Trends
Enrollment numbers at Central State University have varied considerably in recent years. After reaching nearly 6,000 students in fall 2021, enrollment has declined by 34% in fall 2023. This reduction can be partly attributed to the end of a partnership with Eastern Gateway Community College, which has affected online enrollment and associated revenue.
Academic Programs Offered
Central State offers various academic programs, including business administration, criminal justice, family education, psychology, and exercise science. Initially part of Wilberforce University, Central State gained independence in 1951 and attained land-grant status in 2014.
(Source: Ohio Capital Journal)
