Members of the Jefferson County Legislative delegation met on Monday at Birmingham Southern College (BSC) to discuss their proposal to take $30 million of state dollars and give that to the struggling liberal arts college near Legion Field in Birmingham.
The meeting was called by State Sen. Jabo Waggoner and State Rep. Jim Carns.
“This plan includes a $30 million one-time infusion from the State of Alabama ($12.5 million from ARPA and $17.5 million from the Education Trust Fund). Along with smaller grants from the City of Birmingham ($5 million) and Jefferson County ($2.5 million), this infusion will cover projected deficits through May 31, 2026,” Waggoner and Carns wrote. “Without support from the state, the college will not be able to continue to operate past May 2023. Without a commitment from the state, the college will need to notify high school seniors that they will no longer be accepting applications by the middle of January.”
The college released a statement acknowledging the dire straits that the school faces.
“Over the past 18 months, BSC President Daniel Coleman has secured firm commitments from hundreds of private donors for $45 million toward a goal of raising $200 million by May 2026 to refresh its endowment fund. This is a remarkable demonstration of support for BSC and a reflection of the fact that the college is important—not only to Birmingham but to the State of Alabama. In order to allow sufficient time for this fund-raising effort to succeed and to give BSC breathing room to operate, we are seeking a one-time contribution of $12.5 million from the second tranche of the American Rescue Plan Act and $17.5 million from the Education Trust Fund (ETF). BSC is also asking for a commitment of $5 million from the City of Birmingham and $2.5 million from Jefferson County. We believe Birmingham-Southern College’s contributions to the greater Birmingham area and the state warrant such an investment, which is clearly permissible under state law and for which there is considerable precedent.”
Coleman briefed legislators on his plan.
“We believe with the time that the state funds will give us, we can gain support from the other 16,000 graduates we have not contacted as well as the many thousands of people and organizations of this state who appreciate the value of this College,” Coleman said. “Our target of $200 million of pledges by May 2026 is achievable, especially with our $45.5 million head start. Such an endowment will give us the financial stability that this college needs to thrive.”
The administration blames its current financial distress on a “building program in the mid-2000s that drew heavily upon the endowment and caused the college to take on significant debt. The financial crisis of 2008-2009 and an error in the accounting of federal financial aid further depleted the college’s resources.”
At the meeting on Monday, State Sen. Rodger Smitherman and State Rep. Juandalynn Givan added their bipartisan support to the bailout of the private college.
“This is the urgency of now,” said Rep. Givan. “To lose Birmingham-Southern would be a travesty for all of us.”
When Judson College in Marian County ran into financial trouble, the Legislature allowed the college to fail in 2021. Some Judson alums have asked why the state would bail out BSC and did nothing to save Judson.
Birmingham-Southern College was founded back in 1898 as Birmingham College. Most of its students come from Alabama, and 28% self-identify as either African-American or Hispanic.
In addition to potential state support, the school will need to raise about $150 million more to be back on its feet by 2026.
At the meetings, the legislators said they plan to present their plan to bail out the struggling private liberal arts college to Alabama Governor Kay Ivey in the coming weeks.
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