Birmingham-Southern College, a private liberal arts college in Alabama, is set to close at the end of May due to financial difficulties. The decision to close followed a failed attempt to secure a financial lifeline from the state, with legislation aimed at securing a taxpayer-backed loan for the institution stalling in the Alabama Statehouse. The College Board of Trustees voted unanimously for closure, citing the impact on students, employees, alumni, Birmingham, and the surrounding neighborhoods. The closure comes as many small private colleges across the country struggle with declining enrollment and competition from larger institutions.
The college, with approximately 1,000 students, is located on the west side of Birmingham. Financial troubles began in 2009 when the institution suffered a $25 million loss in the value of its endowment due to the financial crash. An audit in 2010 revealed significant accounting errors in the budgeting of federal student financial aid, leading to budget cuts and layoffs. Moody’s Investors Service downgraded the college’s bonds after revenue declines caused heavy reliance on the endowment. The college had hoped to secure financial assistance from the state through a loan program, but the state treasurer denied the loan application. New legislation introduced this year also failed, leaving the college with no option but to close.
Supporters of the legislation hoped to keep the college open not only for the institution itself but also for the impact on the surrounding neighborhoods if the 192-acre campus were to shut down. U.S. Rep. Terri Sewell of Alabama expressed disappointment in state leaders’ failure to provide assistance to Birmingham-Southern College. She acknowledged the college’s contribution to the state by producing outstanding graduates and employing many alumni, including her legislative aide and chief of staff. Birmingham Mayor Randall Woodfin also expressed disappointment and heartbreak at the closure, noting Birmingham-Southern’s legacy of shaping leaders in the community.
Birmingham-Southern College Provost Laura K. Stultz stated that the college is working on agreements with other institutions to help students transfer credits and stay on track academically following the closure. Discussions are underway to ensure that students can continue their education seamlessly despite the sudden closure of Birmingham-Southern College. The closure of the college represents a loss for the city of Birmingham, the state of Alabama, and the wider community, as the institution has been a pillar in education and community development. The impact of the closure will be felt not only by current students and staff but also by alumni and local residents who have benefited from the college’s presence.
