Midway College Makes Changes to Balance Budget

Date: 
Sep 11 - Mar 11

For Immediate Release
September 10, 2013

Midway College Makes Changes to Balance Budget

Midway, Ky.-Midway College announced today that it will be releasing some faculty members in order to balance the budget for the fiscal year 2013-14.

"Our enrollment for the fall came in under the budgeted projections (approximately 18 percent decline in enrollment) and this greatly impacted our bottom line," said Dr. John Marsden, President of Midway College since February 2013. "The enrollment drops were across each area of the college and shortfalls were in both recruitment of new students and retention of existing students. As an institution that is so heavily dependent on tuition revenue, cuts have to be made. After exhausting all other options, some faculty contracts will be eliminated from this fiscal year in order to balance the budget."

The Board of Trustees granted the Administration authority to terminate some faculty contracts. Notices to those faculty members impacted will begin next week. Some staff positions have already been eliminated in July and August prior to the start of the academic year due to overstaffing issues and resizing for best fit.
Since taking over as president in February of this year, Marsden has been working to build a new leadership team, balance the budget and look at all operational aspects of the College. Since July, a new Provost, Vice President for Development and Dean of Enrollment Management have been hired. The search continues for a new Chief Financial Officer.

In addition to terminating some faculty contracts, the Board of Trustees also voted to suspend the employee retirement match for the remainder of this academic year. In the previous fiscal year, it should be noted that all employees received a 5 percent salary increase that began January 2013.

"Although a difficult decision to make, we felt that suspending the retirement match would be an equitable measure and less impactful to our employees," said Donna Moore, Board of Trustees Chair.

"It is essential for us as we are preparing for our re-affirmation visit from SACSCOC in 2015 that we have a balanced budget. Our enrollment management team is working to continue recruiting students for this academic year and is putting more effective recruitment plans in place for the coming years. In addition our Academic Affairs Office is working to address the issue of retention and student services, " said Marsden.

Marsden says his team is focused on moving the institution forward by implementing "best practices" across campus in all areas; refocusing efforts on the Women's College experience; and working to ensure a student-focused approach to the institution. Work is also underway for finalizing a new strategic plan for the institution to establish both short- and long-term goals for the institution.

"I'm hopeful that we will soon begin making more positive announcements on the progress we are making," said Marsden. "It is never easy to make personnel cuts, but all this is being done for the long-term benefit of the College. I am asking all of our staff and faculty to continue to remain focused on our students and provide them with the best educational experience possible."

"Our Board of Trustees is supportive of all the efforts and steps Dr. Marsden and his team are taking to get the College back on track," said Moore. "We understand this isn't the way in which he had hoped to start his presidency, but he is truly doing the work that needs to be done for the sake of this institution at this time."

Media Contact: Ellen Gregory, Vice President Marketing & Communications, 859-846-6046, egregory@midway.edu