Pa. College's Dramatic Cuts Fail to Secure Its Future

Albright College's Financial Turnaround and Ongoing Challenges

Albright College, a liberal arts institution in Pennsylvania, recently reported a more than $10 million surplus at the end of its fiscal year. This achievement came after significant cost-cutting measures, including the elimination of half of its full-time staff, selling unused property and assets, and reducing operational expenses to eliminate its deficit. Despite these efforts, financial experts caution that this windfall does not guarantee long-term stability. Much of the revenue was generated through one-time actions, which are not sustainable over time.

The college’s financial struggles are part of a broader trend affecting many small colleges across Pennsylvania and the United States. Declining enrollment has become a major challenge for higher education institutions nationwide. Albright’s net income margin, an indicator of financial health, has significantly dropped, falling below that of other institutions that have closed, such as the University of the Arts and Cabrini and Clarks Summit universities. These findings were compiled by the Private College Advanced Financial Compass and shared with Spotlight PA by College Viability, LLC.

In April 2024, Albright’s faculty expressed a lack of confidence in then-President Jacquelyn Fetrow, leading to the appointment of new administrators. The board also made several changes, including laying off 53 employees, canceling certain academic majors, and selling property and artwork. In December, the college received permission to borrow up to $25 million from its endowment fund to avoid potential closure. However, two months later, administrators told Reading City Council that the college was not in danger of closing due to its efforts to "right-size" the institution.

Despite these steps, higher education experts emphasize that cutting costs alone is not enough to ensure long-term financial stability. Lynn Pasquerella, president of the American Association of Colleges and Universities, noted that successful recovery requires multiple strategies, such as increasing alumni donations and securing state and federal support. Gary Stocker, founder of College Viability, LLC, added that Albright’s current surplus depends on one-time revenue, which is not sustainable without ongoing positive cash flow from operations.

Strategic Changes and Future Goals

Moving forward, Albright plans to attract more students by expanding its athletics programs and phasing out less popular majors like economics and philosophy in favor of in-demand fields such as cybersecurity, vocal performance, and music production. Larry Bomback, interim chief financial officer and vice president of finance, said these changes will take time to show results but provide the necessary runway for future growth.

Bomback acknowledged that the college faced a “gigantic structural deficit” and that immediate cost-cutting was necessary to avoid closure. He noted that the school had been in financial trouble since 2018, despite recent claims that deficits only occurred in 2023 and 2024. Former and current faculty and staff had raised concerns about the college’s finances for years, but their warnings went unheeded.

Fetrow resigned in May 2024 amid questions about the college’s financial status. The board then hired Debra Townsley, who was praised for her experience in managing spending while increasing enrollment and fundraising. Since taking over, the new administration has sold unused property, generating $13.8 million in one-time revenue. The college has also received nearly $4 million in unrestricted donations since January, according to Bomback. Additionally, Albright is working to reduce its reliance on the endowment fund.

Addressing Enrollment Declines

A key factor in Albright’s turnaround is reversing its declining enrollment, which has dropped nearly 50% since 2016. This decline is part of a national trend known as the “demographic cliff,” where fewer Americans are having children, leading to fewer college-age students. As Albright relies heavily on tuition revenue, maintaining and increasing enrollment is crucial for its future.

Administrators report that the incoming fall 2025 class is larger than expected, with 455 full-time undergraduate students matriculating this fall. Officials aim to increase annual enrollment from around 1,100 to 1,600 students. To attract and retain students, the college is introducing new athletic and curricular programs, including men’s and women’s wrestling and an NCAA DIII stunt program. New academic programs, such as human resources management, will also be added or expanded.

Bomback emphasized that athletics play a central role in Albright’s identity, citing feedback from alumni who value the campus experience. “We’re doubling down on something that is very important to the Albright holistic educational experience,” he said.

Community Support and Uncertainty

Resuscitating a financially struggling institution requires buy-in from the community, faculty, students, and alumni. However, it remains unclear whether this support exists at Albright. The Albright College Alumni Association did not respond to requests for comment, and past and present trustees either declined to speak or did not respond. No faculty members contacted by the newsroom were willing to speak on the record.

Despite these challenges, Albright administrators claim that faculty and staff are supportive of their strategy and want to be part of the change. They also point to recent alumni donations as evidence of broader support for the financial recovery effort. Bomback expressed full confidence in the college’s ability to turn things around, stating that they have already made significant progress and can now focus on top-line revenue through athletics and new academic programs.

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