After 181 years, Iowa Wesleyan University will close it's doors after the current academic year ends in May.

The school said the closure happened after “intensive analysis of Iowa Wesleyan’s financial operations and considerable exploration of all feasible strategic alternatives.”

They also cited increased operating costs, reduced enrollment trends, a dramatic decrease in philanthropic giving and the school's request to Governor Reynolds’ for $12 million in federal COVID-19 funds being declined.

In a statement yesterday, the Governor in part said this: "“It wasn’t until February 3, 2023, that my office received a request from the university for $12 million for ongoing operating costs. As I’ve said many times, we endeavor not to spend one-time federal dollars on ongoing expenses. To better understand their request and the financial health of the university, my office engaged an independent, third-party accounting firm to conduct due diligence. The firm reported that Iowa Wesleyan had a $26.1 million loan from the USDA, using their campus as collateral, that could be recalled in full as early as November 2023. Additionally, Iowa Wesleyan’s auditor cited ongoing concerns about the university’s fiscal health, stating “significant operating losses and reduced liquidity raise substantial doubt about its ability to continue as a going concern.” The firm also highlighted that that while enrollment at Iowa Wesleyan has grown over the past three years, their financial health has continued to deteriorate over the same period.

“Based on this and other factors, the independent accounting firm determined that providing one-time, federal funds would not solve the systemic financial issues plaguing the university. If the state would have provided the federal funding as requested and it was used to finance debt or other impermissible uses according to US Treasury guidelines, the state and taxpayers could have been liable for potential repayment to the federal government. Moreover, the state has separately received $122 million in requests from other universities and community colleges across the state. "

It seems to me that even if the Governor had of handed over $12 Million, the "fix" would have been short term. What do you think? Should Iowa have used taxpayer $s to help Wesleyan University?

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Need to Know with Jeff Angelo

Need To Know with Jeff Angelo