Funding shortage causes delayed pay and inactive insurance for Clinton College employees
Clinton College in Rock Hill is reporting “severe cash flow shortages” amid funding lapses and delayed reimbursements, according to emails the college president sent to faculty.
The college declined to share who owes it money, and how much it is owed, but said it was undergoing a fundraising plan to secure short- and long-term funding.
The funding constraints have left the college’s 86 employees and faculty without their full pay for over a month, as well as weeks of inactive medical coverage, according to emails since April 29 from college President Pamela Richardson Wilks to faculty that were obtained by The Herald.
“I recognize that any change to payroll cadence has real impact — on household budgets, on bills already scheduled, and on the steady rhythm with which you depend. I do not take that lightly,” Wilks wrote to faculty and staff on May 1. “I am grateful for your patience and flexibility, and I want you to know that this approach was chosen specifically to keep every paycheck whole.”
College administrators asked for questions in writing for this news story, answering some of them.
A “serious” cash flow problem
Clinton College employees have gone nearly two months with an irregular pay schedule, Wilks acknowledged in her emails to faculty.
The administration informed faculty on April 24 that their paychecks would be delayed. Checks are usually distributed on the final business day of the month.
On May 1, Wilks said the college would be providing April pay in two installments in May.
Wilks said the college was working through a “serious cash flow problem” in the email.
May’s paychecks were also delayed. Wilks emailed employees on June 4 to say the school could only pay $1,000 per employee toward May payroll.
It’s unclear if employees have been paid since then.
“Please know that this decision was made only after careful review of all available resources and with the goal of providing assistance to as many employees as possible,” Wilks said in the June 4 email.
The college’s chief financial officer also said in an email on June 6 that the school’s medical insurance coverage was “temporarily inactive,” and the school would be unable to process any claims after May 25.
Wilks emailed faculty and staff Monday acknowledging the continuing funding problems, and said “resolutions are forthcoming.”
Multi-year fundraising plan
Gregory Deas, chief information and strategy officer at Clinton, said in a statement to The Herald that the school was working with “funding partners” to receive outstanding reimbursements and grants. He declined to share details or say who Clinton College expected reimbursement from.
The college didn’t specify when it would be able to fix its payroll issues, or activate its medical insurance policy.
Deas declined to share how much money the college needed to raise, but said it was working on a five-year fundraising plan to address current and long-term needs by seeking help from alumni, religious organizations and corporate partners.
“Clinton College has been and continues to work with the funding partners related to approved grants and program expenditures that have already been incurred by the institution,” Deas said in the statement. “We remain actively engaged with those partners to ensure all outstanding reimbursements are received and disbursed.”
More about Clinton College
Clinton College was founded in 1894 as Clinton Institute by the African Methodist Episcopal Zion Church. It’s one of only two colleges in the U.S. affiliated with the church.
The 19-acre private college is about two miles from downtown Rock Hill, and enrolled 119 students in 2022, according to U.S. News and World Report. The college’s website lists tuition at $10,936 per year.
The college changed its named to Clinton Junior College in 1965 when it began offering associate degrees. The ‘junior’ was dropped in 2013 when the school began offering four-year degrees, and it now has 11 different programs.
Clinton is one of eight HBCUs in South Carolina, and is one of the smallest historically Black colleges in the United States by enrollment.
Clinton College became a key stop for Democrats on the campaign trail in 2019. Presidential hopefuls Elizabeth Warren, Bernie Sanders, Tom Steyer and Marianne Williamson all made speeches on Clinton’s campus.
Former President Joe Biden also held a town hall event at Clinton in August 2019 that drew over 300 people.
The school has hosted prominent civil rights leaders. Rev. Jesse Jackson made several stops at Clinton, his most recent one occurring in 2015. Bernice King, the daughter of Martin Luther King Jr., delivered a commencement address at Clinton in 2018.
Funding problems
Funding issues at HBCUs are not uncommon, including at several institutions in the Carolinas. Private HBCUs rely on grants and contracts, as well as tuition revenue, to fund their operations.
In 2019, the Southern Association of Colleges and Schools stripped accreditation from Bennett College, a historically-Black women’s college in Greensboro, over concerns it was not financially viable. After an $8.2 million grassroots fundraising campaign, the school successfully sued to keep its accreditation.
Raleigh’s St. Augustine’s University filed for bankruptcy in April, just months after winning an injunction to remain accredited. The university said it owed between $50 million to $100 million to creditors, but didn’t have plans to close its doors.
Do you have information about Clinton College or education in York County? Contact reporter Noah Vinsky at (484) 403-9811 or by email at noah.vinsky@charlotteobserver.com
