On Dec. 5, 2024, the administration of William Jewell College sent a letter to Jewell students informing the Cardinal community that the College would be declaring financial exigency.
Accompanying this declaration, Jewell’s administration launched a new webpage, “Reimagine Jewell.” The webpage informed students, alumni and donors of the challenges the College has faced and the College’s plan to address these difficulties.
The full letter to students can be read here. It noted, in relevant part, that:
“The College has implemented a variety of strategic cost-cutting measures to achieve efficiencies. These included asset sales, savings on what we purchase, operational cost cuts, deferral of non-essential maintenance expense, and most recently, a reduction in administrative staff. Additional immediate cost-saving measures must be implemented to balance our budget and ensure Jewell’s future success.
Following extensive analysis and thoughtful deliberation, the William Jewell College Board of Trustees has voted to declare financial exigency, an intentional step toward creating financial stability and securing the path forward for the College. In doing so, the Board is deploying an important tool that enables reallocation of resources, restructuring of academic programs, scholarships and significant reductions in force. [Jewell] will transition out of the financial exigency period in less than one year after efficiencies are being achieved according to plan.” [emphasis added]
In a press release, Bill Gautreaux, chair of Jewell’s Board of Trustees, said that as is, “the cost of program delivery is not sustainable. It is essential that we confront that inefficiency and build a solid foundation for future growth.” Interim President Susan Chambers described current conditions as a “challenging time,” but added that she was “collectively dedicated to the preservation of Jewell for the long term.”
What is financial exigency?
William Jewell College defines financial exigency in accordance with guidelines published by the American Association of University Professors (AAUP). According to the College’s Faculty Handbook, a state of financial exigency may be declared by the Board of Trustees when “an imminent financial crisis threatens the survival of the institution as a whole and that [financial crisis] cannot be alleviated by less drastic means” (§4.8, p. 48).
Jewell also has the ability to declare financial hardship, which differs from financial exigency in that “financial stability,” not the institution’s survival, is under threat. Jewell may declare financial hardship when it may not meet accreditation or federal standards, experiences a multi-year budget shortfall, or restructures a program due to “declining enrollments or excessive financial drain” (§4.9, pp. 48-9).
By declaring financial exigency, then, the Board clarified the urgency of the crisis Jewell is facing. This crisis threatens Jewell’s survival, not merely its financial stability.
How is the College administration addressing this?
Declaring financial exigency enables Jewell to take substantial steps to cut expenses.
Academically, the College may choose to restructure or remove certain academic programs. “Reimagine Jewell” noted that “many changes [to Jewell’s academic programs] will be welcomed, but some will impact programs, services and traditions that, while valuable, do not have sufficient aggregate demand to continue in their current state.”
Financial exigency also enables the College to eliminate the positions of faculty members with tenure; exigency is one of the few conditions under which Jewell may do so (Faculty Handbook, §5.10.1). Moreover, Jewell is not obligated to continue academic programs that it has been offering, and a reduction in faculty caused by budget cuts may render certain programs inoperable.
Athletically, programs will continue through at least the end of spring. Jewell stated that athletic programs will “continue as planned for spring as well while we complete the work developing a more viable athletic aid strategy, and a sustainable and strategic fundraising plan.” Jewell plans to provide more details about the future of athletic programs in early 2025.
Administratively, Jewell seeks to increase revenue via summer programs or other uses of its facilities, while decreasing expenses in energy consumption and technology infrastructure.
Other impacts on College functions
Despite this declaration of financial exigency, the College claims to prioritize “as little disruption to the student experience as possible” and that the College is “committed to supporting [students] during this time.”
Finally, Jewell’s search for a new president has been paused during this time, and Interim President Susan Chambers will continue to serve until a new president and other long-term leadership are found.