Saint Augustine’s College, the oldest historically Black Episcopal college, has taken major steps to stabilize its precarious financial situation. In recent weeks, it announced a $70 million deal to lease some of its property to a sports-stadium firm and a halving of its workforce, which will reduce annual operating costs by $17 million.
The announcements come in advance of an important meeting later this month with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), which will rule on its continued accreditation.
The SACSCOC had voted in December 2023 to remove the Raleigh, North Carolina, college’s accreditation due to financial instability. That decision was unanimously reversed by an arbitration panel in July, but the university remains on probation, and must show concrete evidence of improvement. Accreditation is vital to the university’s future because federal student loans are only available to students at accredited institutions.
“The momentum we are building is promising. While difficult, we acknowledge the seriousness of our financial challenges, and these measures are crucial for our long-term sustainability,” said Interim President Marcus H. Burgess in the college’s November 23 announcement of the job cuts.
“We are committed to transforming SAU into a financially stable institution that prioritizes the success of our students and stakeholders. Our ongoing efforts to stabilize the financial condition of Saint Augustine’s University are now showing tangible results — our community is responding positively, and we are excited about our future.”
The university signed a letter of intent on November 17 to lease “a certain amount of property” on its downtown campus to 50 Plus 1 Sports, a Florida-based professional sports stadium development company. The university, which discontinued its football program this year, constructed a 2,500-seat artificial turf stadium, the George Williams Athletic Complex, in 2010.
Local news media report that the deal will pay the university $60 million in 2024 and $10 million in 2025. It also includes a revenue-sharing agreement for the first 15 years of the 99-year lease.
The deal should provide much-needed funds to stabilize cash flow for the institution, which reportedly missed two payrolls last winter, and to pay off its accumulated debt, which was reported to be more than $25 million last April.
It may also allow Saint Augustine’s to cut its ties with Gothic Ventures, a venture capital firm, which loaned the university $7 million for operational costs during the current academic year. The loan came with a 24 percent interest rate that was described as “predatory” by local community leaders.
Saint Augustine’s student population has declined precipitously amid its financial problems. Local news media reported that only about 200 students started classes this fall, down from an enrollment of around 1,200 before the COVID pandemic.
Student life has been harmed by the college’s challenges. Last April, Saint Augustine’s sent all of its students home after boilers failed in multiple buildings. Local churches needed to pitch in to feed students who remained on campus after dining services were shuttered. The return to campus this fall was delayed by two weeks after Hurricane Debby left multiple buildings without power or water.
The university’s staff cuts almost certainly derive from the reduced number of students, and will have an especially strong effect on faculty. The college will cut 37 full-time faculty positions, a 67 percent reduction, as well as 32 adjunct faculty positions, a 57 percent reduction. Staff positions are less hard-hit, with 67 eliminated positions amounting to 41 percent of the workforce.
The university has also discontinued “several under-enrolled programs,” and is settling balances with vendors and adjusting contracts to restore financial stability. It also reported that it has restored employee payroll and health benefits “after a challenging period.”
These latest cuts come after several years of major reductions. The college’s operating expenses have fallen from $42.1 million in 2022 to $27.3 million in 2024.
Still, the university’s efforts to break even have remained elusive. For the fiscal year that ended in July, Saint Augustine’s posted a $6.4 million operating deficit, $2.7 million less than the prior year’s.
Declining tuition and fee revenue has been a major factor in the university’s financial struggles. It was halved between 2022 and 2024, to just $7.9 million.
Still, the university reported that 700 applications had already been received for Fall 2025, a sign of “strong interest in its academic offerings.” It also says that financial giving from its alumni has remained consistent.
“The steps we take today symbolize our dedication to a financially secure future,” said Mark Yates, vice president for business and administration and chief operating officer. “By addressing our challenges head-on, we are not just complying with accreditation standards; we are laying the groundwork for a resilient institution that prioritizes the needs of our community.”
Saint Augustine’s was founded in 1867 by the Freedmen’s Commission of the Episcopal Church’s Board of Missions as a school for formerly enslaved people. It is the older of the Episcopal Church’s two remaining historically Black colleges. Voorhees University in Denmark, South Carolina, the other church-affiliated college, was founded in 1897.
The Rev. Mark Michael is editor-in-chief of The Living Church. An Episcopal priest, he has reported widely on global Anglicanism, and also writes about church history, liturgy, and pastoral ministry.