Central State University, Ohio’s only HBCU, has recently been placed on fiscal watch due to significant financial challenges. This announcement was made by the Ohio Department of Higher Education’s Chancellor, Mike Duffey, on Oct. 25. The fiscal watch status means that the university will receive state support as it works to improve its financial standing.
Understanding fiscal watch
Being placed on fiscal watch is a serious matter for any educational institution. It requires the affected university to develop a comprehensive financial recovery plan that includes enhanced financial reporting and increased engagement from the board of trustees. Additionally, a state auditor will evaluate the university’s financial practices and provide guidance on budgeting and reporting procedures.
Commitment to students
Despite the financial scrutiny, Central State University has assured its students that their education will not be disrupted. Classes will continue as scheduled, allowing students to pursue their academic goals without interruption. Founded in 1887, Central State has a rich history and a commitment to providing quality education to its students.
Leadership and financial discrepancies
Morakinyo Kuti, who took office as president of Central State in September 2023, discovered several discrepancies in the university’s financial reports shortly after assuming his role. Among the issues were unpaid balances to vendors and an incomplete audit for 2023. Recognizing the severity of the situation, Kuti promptly informed the state and sought assistance to address these challenges.
“It’s not something that any university wants to be on,” Kuti stated in an interview with Dayton Daily News. “When I came on, I knew that things were not what they were supposed to be, so we wanted to inform the state as soon as possible, and we also wanted to get their assistance as soon as possible.”
A vision for the future
Kuti emphasized that the university’s goal is to emerge from fiscal watch as quickly as possible. He expressed optimism about Central State’s future, stating, “The future is bright at Central State University, but in order for us to get to that bright future, we have to get our house in order.” This proactive approach is essential for restoring confidence among students, faculty and stakeholders.
Enrollment challenges
In addition to financial difficulties, Central State has experienced a significant decline in online enrollment, dropping from 4,000 to just 1,000 students. This decrease poses a challenge not only for the university’s financial health but also for its ability to fulfill its mission as an educational institution.
Support from state officials
Ohio Governor Mike DeWine has expressed his commitment to helping Central State navigate these challenges. He acknowledged the university’s importance to the Miami Valley and the entire state of Ohio. He emphasized the need for swift action to address the university’s financial issues, stating that the quicker it can get dealt with, the better.
A historical context
This is not the first time Central State has faced fiscal watch; the university was previously placed under similar scrutiny in 2015. With the current situation, the administration hopes to resolve these financial challenges within three years, demonstrating a commitment to transparency and accountability.
As Central State University embarks on this journey to financial recovery, the support from state officials and the dedication of its leadership will be crucial. The university’s storied history and commitment to its students provide a strong foundation for overcoming these challenges. With a clear plan and the right resources, Central State can look forward to a brighter future.
