Small Colleges Sell Prized Assets to Stay Afloat Amid Enrollment Slump
Kerry Hall, a Cornerstone of Cornish College, Faces Sale
Kerry Hall, the iconic building adorned with Spanish Revival architecture, serves as the heart of Cornish College of the Arts' dance, performance, and classroom spaces. However, the college's recent decision to sell the hall has sparked uproar among students, faculty, and alumni.
Enrollment Decline and Financial Stress
Cornish College, with just over 400 students, is facing a declining birth rate that has shrunk the pool of college applicants and left the school struggling to fill classrooms and cover expenses. This challenge is shared by numerous small private colleges across the United States, forcing them to consider drastic measures.
Asset Sales as a Band-Aid Solution
In response to financial pressure, schools are resorting to selling valuable assets such as housing complexes, presidential mansions, and even artwork. While these sales provide immediate relief, they may also diminish a school's appeal, ultimately deepening their plight.
Case Studies of Asset Sales
The College of Saint Rose in New York exemplifies the risks of asset sales. Despite selling real estate, the college ultimately closed its doors due to financial collapse. Valparaiso University faced backlash for selling Georgia O'Keeffe's "Rust Red Hills," a move that drew criticism from the art community.
Contentious Sales and Student Protests
Cornish College students staged a sit-in to protest the proposed sale of Kerry Hall, fearing the loss of a safe haven for dancers and musicians. The sale, if completed, will mark the end of the school's presence in Capitol Hill and will raise the question of long-term sustainability.
Belt Tightening and Strategic Sales
Not all asset sales indicate financial distress. The New School in New York City, with a robust endowment and enrollment, has sold a housing complex and its president's home due to low demand. The school emphasizes its regular assessment of space needs and commitment to future growth.
Balancing Core Assets and Non-Core Assets
Higher education consultants advise colleges to prioritize selling non-core assets that do not align with their primary mission. However, buildings like Kerry Hall, which remain integral to the school's operations, present a more complex dilemma.
The Future of Small Colleges
The financial pressures facing small colleges highlight the challenges of operating with limited enrollment. The long-term sustainability of these institutions remains uncertain, and asset sales may only provide a temporary reprieve rather than a permanent solution.