Dive Brief:
- City and state officials are investigating the abrupt closure of the University of the Arts, a private nonprofit in Philadelphia that shut down Friday with just one week’s notice.
- The Philadelphia City Council passed a resolution Thursday to look into UArts' sudden closure and the effects it will have on the university's students and staff, as well as on the city's higher education ecosystem.
- The Pennsylvania Office of Attorney General is "involved" with the council's inquiry and will explore possible legal ramifications, according to the office of Councilmember Mark Squilla, who introduced the resolution. The attorney general’s office confirmed Tuesday that it is reviewing the closure.
Dive Insight:
Like many tuition-dependent colleges, UArts suffered from a steady decline in enrollment and revenue. In fall 2022, the university enrolled 1,313 students, down 38.2% from 2,126 a decade earlier, according to federal data. And it faced a budgetary shortfall of $12 million at the end of fiscal 2023, according to its most recent audit.
But in a notice, UArts officials attributed the abrupt closure to a shortfall of funds that “came to light very suddenly" due to significant and unanticipated expenses. They did not provide further details.
The state attorney general's office Tuesday said it would be looking into how things unfolded at the university.
"We are very concerned by the sudden closure of University of the Arts, which has impacted students, staff, and the community," said Brett Hambright, spokesperson for the attorney general's office. "We are reviewing the circumstances of the closure and any transfer or loss of assets."
At the city level, Squilla and Councilmember Isaiah Thomas, chair of the education committee, will schedule a hearing on UArts for the coming weeks, Squilla's office said Tuesday.
State legislators have also expressed outrage over the effects on UArts students and workers.
"The university administration’s disregard is shocking and unacceptable," State Sen. Nikil Saval posted on social media on June 1. "The students and workers deserve concrete plans and support as they prepare to navigate this difficult time."
On Friday, Saval and state Rep. Ben Waxman joined the United Academics of Philadelphia, a union representing UArts' faculty, at a rally in solidarity with former students and staff.
The university is also facing a class-action lawsuit from nine employees, who allege that the institution violated federal labor law by not providing sufficient written notice ahead of their termination.
UArts notified the Middle States Commission on Higher Education on May 29 of its plans to close over financial concerns, after which MSCHE revoked its accreditation. On May 31, UArts informed students and employees of its pending dissolution, and its president, Kerry Walk, resigned days later.
