Union Institute & University (UI&U) – Born: 1964, Died: 2024
For sixty years, UI&U engaged, enlightened, and empowered an extremely diverse student population transforming them into scholars, leaders, researchers, and socially-just, civic-minded, community-impactors. They were school teachers and principals, psychologists, social workers, police officers, business professionals, and government influencers. Alumni include university presidents, published authors, CEOs, and even a prime minister. Yet, it is the story of UI&U’s birth that makes it so fascinating.
As college presidents gathered in Plainfield, Massachusetts, home of Goddard College, at the 1963 Conference of Experimental Colleges, the higher education landscape was scattered with barely covered trees, but simultaneously wealthy with innovations ready to forge new paths. University leaders were looking to employ said innovation to increase enrollment and decrease fiscal strains. History was being made. This first-of-a-kind consortium challenged the structures of higher education and dared to build alternative roads to learning. With that, the Union for Research and Experimentation in Higher Education (UREHE) was born. The 1963 conference was titled: “The Impact and Future Role of the Experimenting College.” Not unlike what we are witnessing today, higher education was at a crossroads. The presidents left Plainfield introducing Dr. Sam Baskin, a psychology professor at Antioch, as the inaugural president of UREHE.
Among the many initiatives he successfully implemented, were Project Changeover - the first professional development provided independent from any of the Union schools, offering training specifically for members of the Union schools – and the University Without Walls - offering individuals opportunities to take classes without having to be inside a classroom at a specific time, while receiving credits from member institutions.
In June 1969, the Ohio State Department of Education authorized the consortium to award doctoral degrees, and in 1972, the North Central Association granted accreditation. With this, The Union Graduate School (UGS) was born. The beginnings called for students to be enrolled by advisors initially located at Antioch in Ohio and Loretto Heights College (one of the newer union members) in Colorado. The students themselves would direct their own course of study, choosing to work with faculty from the Union Graduate School, another accredited institution, or an expert from their field of choice. Faculty would be paid through the UGS budget, regardless if they were also representing a member college from the consortium. In 1976, after significant growth to the UECU and vast expansion of academic programs offered by UGS, Dr. Baskin announced his intentions to retire. He originally intended to take the job as leave from Antioch for just two years. But, in twelve years at the helm, he altered the history of higher education.
Fast-forward to the end. The consortium supported by membership dues and external grants transitioned into a tuition-driven independent academic institution. Over the course of the next forty-eight years, it was led by six more presidents (including Dr. Bob Conley from 1982 to 1999, and Dr. Roger Sublett from 2002 to 2018), and operated under the banner of two more name changes (The Union Institute in 1989 and Union Institute & University in 2001). These reflected extensive growth in academic programming, degree levels, physical locations, and enrollment. There was innovation and creativity in giving power to the students to design their curriculum (certainly a trademark of the early Ph.D. programs). Delivery models offered hybrid education before that terminology was common. Distance education and independent study were supported by in-person residencies, and moved parallel to technological advancements, from snail mail correspondence to Fax machines to e-mail to the learning management systems that we know today. UI&U’s staunch advocacy and academic focus on social justice enhanced their reputation. Years of persistence, retention, and degree attainment has led to tens of thousands of alumni, including the aforementioned successful and accomplished professionals.
UI&U did also face their challenges. There was never a major donation or endowment secured; thus, the institution was always tuition reliant. Periods of low enrollment necessitated frequent budget cuts, as well as personnel, resources, and program downsizing. Campus acquisitions left the university economics spread too thin. Failed new program launches resulted in substantial costs. Under Academic probation placed upon them by their accreditors in the early 2000s required expert navigation to ensure that was a short-term and minor episode easy to have recovered from.
Despite that, UI&U remained strong, continuously building upon their reputation for social justice, and maintaining laser focus on student success both toward degree attainment and career development. Faculty and staff were beloved due to their heavy devotion and mission-driven approach to make Union students successful. According to news reports (Union Institute now in 'financial distress,' accrediting body says (wcpo.com)), at the time of Dr. Sublett’s retirement, UI&U had $6.3 million in cash and a $3 million endowment. But, with the transition to the new (and ultimately final) president, revenue decreased from $19.6 million to $15.8 million – a decrease of 20% in just the first year. In 2021, UI&U was forced to sell their headquarters, their home since during the Conley administration. Despite the listing of $5.4 million, it sold for $4.7 million, of which $2.7 million was immediately used to pay off past due bank loans. By June of 2022, UI&U had lost $5.6 million in the four years since the departure of Dr. Sublett.
Covid 19 brought a tiny uptick in enrollment from small colleges who were not ready to offer any courses online, as well as good amount of money from federal and local grants. But it was not enough. Poor management, over reliance of expensive consultants, irrational and uninformed decisions, misuse of funds, zero fundraising beyond the limited tuition from declining enrollments, and inability to establish any new bank loans lead to December of 2022. This is when failure of meeting payroll first occurred. At first, it was made up within a week or two each instance that it occurred. However, in March, missed payrolls started overlapping, and staff started feeling the effects of not being paid for a month, two months, etc. Vendors were also calling as debts to them were piling up. While, at the end of June of 2023 all salaries were once again up-to-date, this would be the last time.
UI&U no longer had the ingenuity it was innately born with or the strong leadership that had become a mainstay. There was no more rightsizing, restructuring, program cutting, or creative navigation. UI&U ceased holding undergraduate and Master level classes in the Fall of 2023, and Ph.D. courses the following semester. Faculty and staff that hung on at the time consequently worked for no pay. Owed thousands of dollars, some faced eviction and forced choices on health care and vital groceries. Senior administration offered lies upon lies, some to come to this conclusion only when they were told by their medical personnel that in fact their insurance premiums were not actually paid by UI&U. Despite being given financial distress status from the same accreditors who provided their right to exist in 1972, a fine of $4.3 million levied by the United States Department of Education for misuse of federal funds, no classes being offered at that moment, eviction from its’ new headquarters and regional campuses, and lawsuits from employees demanding backpay, leadership promoted the delusion that they will restructure, reenroll, and reinstate their academic programs. But in June, 2024, UI&U finally announced its’ closure.
In the farewell statement, the president and vice president remarked: "We leave knowing that we have made our mark on the higher education world.” Those who lived through the final administration, met this statement with cynicism. Yet, the history of UI&U sees truth in this. The presidents who gathered at the 1963 Conference of Experimental Colleges (unknowingly at that time) forged a path that certainly left a mark on the higher education world.
There lies the biggest irony. In the end, the institution that was born from a consortium of colleges working together to form a union, died without being able to find one school willing to partner with them.
Union is not the only college to experience closure in recent years, Inside Higher Ed has tracked at least sixteen such announcements in 2024 (https://www.insidehighered.com/news/business/financial-health/2024/12/13/2024-has-seen-more-college-closures-last-year). Among the colleges that have shut their doors included many small not-for-profits, religious institutions, both traditional campus-based and online colleges, specialty schools focusing on the arts, health, film, or sports, relatively young universities, as well as those who were established over a hundred of years ago. Experts in predictive analysis says hundreds of more college closures are possible in the next five to ten years. This past April, Goddard College, the very same one that hosted the 1963 Conference of Experimental Colleges, announced its’ closing.
With the bookends of a historic consortium formation and an epic crash and burn, here are lessons from both:
Relationships are important – One of the purposes of the original UREHE states: “Schools can foster collaboration in experimentation and research.” A college can function independently, offer innovative academic programs, provide robust services, and even have comprehensive engagement and socialization opportunities. But, when there is strong collaboration, then each of these can be significantly enhanced. However, the biggest benefit is that relationships are two-way streets. They are available for when one is need of help. For example, collaboration can take the form of one providing library service or IT assistance for another, thereby reducing costs for the struggling college, and perhaps even save its’ existence. When the time comes to explore possible merger or acquisitions, opportunities are born from these relationships.
Timing is everything – Speaking of time, one of the biggest problems that colleges face when they make the drastic decision to close is that it is often too late to entertain any other option. Strong relationships can position a financially tense school in a position to negotiate a merger or acquisition. But timing is everything, and stalling too long on a decision invalidates any foundation that may have been laid and then the act is out of desperation without the dignity and compassion that the students, faculty, and staff richly deserve. Closing wisely takes time and money. Waiting too long forces an abrupt closing, leaving key players shocked and angered versus ready and involved. Further, waiting too long also makes the college less attractive to potential merger or teach-out partners. On-going expenses increases the debt, and continued decline in enrollment and program cuts lead to a decrease in what can be used for merger or acquisition purposes.
Innovation is the enemy of failure – Just like the experiment that started this all, if you are not innovating you are falling behind. When something zigs, you must zag. COVID-19 is a great example of the need for zagging being forced upon higher education. Schools who were not nimble enough to shift their practices and tweak their delivery models, realized the challenges they faced even after the pandemic masks were removed. Collaboration from the consortium colleges strengthened each individual college to the point that their existence was no longer in question (at least for many years to come), leading to a new independent non-competing college (which ultimately lasted sixty years). Further, as the tsunami of technological advancements redefines learning management systems and online engagements, college and universities must zag in their delivery model. Union had begun to become stale. All innovation that they were born with had seemingly died out, as other institutions surpassed them by incorporating a keen vision of workforce needs and newly minted market-demanding academics, with robust online options, grander socialization opportunities, deeper research prospects, and leaders who respected their customer base.
Information sharing is actually helpful – When challenges arise, most leaders wish to keep it close to their vest. They believe, with modicums of truth, that too much information creates fear and anxiety in their faculty, staff and students. Already under the pressure of financial strains, they do not want to lose enrollment dollars from current or prospective students. However, when there is complete and truthful transparency there is more collaboration and productivity toward a common goal. This is the case for both external information and internal communication. Camaraderie amongst colleges will make it easier to find a merger or teach-out partner. But the more critical point here is internal information sharing. Even prior to a final decision to close a college, administration, faculty, and staff should be kept updated. Certainly, there may be sensitive information that should remain with the President’s executive council and the board of trustees. However, whispers, rumors, and gossip cause the aforementioned anxiety amongst the people who are charged with teaching and servicing students, as well as for the students themselves. Proper communication provides guidance as to what to share with students, recruits, and the media. Failure to share timely information will likely lead to the mass exodus amongst personnel, and more significantly, amongst students, thereby making it counterproductive to the ultimate goal of enrollment growth, financial flexibility, and continued operations.
Manage finances – This lesson is about protecting faculty and staff. No one in any industry should live with the fear and anxiety of their work going uncompensated. A company, when realizing that they may be on the verge of closing, should be accountable for ensuring that sufficient funds are available to bank payroll for all personnel engaging in responsible employment. Universities have huge expenses. Budget managers must be accurate in their forecasting and ensure allocations remain to fulfill all obligations. By the time that a college is on this path, it probably is already noticeable that resources are dwindling, course offerings are limited, and desperately needed campus updates are being ignored. But if finances aren’t managed accordingly, then the slope becomes slippery so much quicker. Students begin to disenroll, faculty and staff start leaving for more secure jobs, and vendors cease providing services. Worse is when appropriate information is not being shared and people can’t prepare as they need to. Typically, faculty and staff hold on at the struggling institution because they have devoted many years to the mission and have a deep care and sense of commitment to the students that they have been serving. To have the place where they gave so much to not honor their work in the end is a real stab in the back. Universities facing closure owe it to their faculty and staff to manage their finances in the manner which allows for salaries and benefits to be paid. Lastly, if a college is able to successfully teach-out or find a merger partner, then future employment opportunities for personnel should definitely be included in negotiations with the receiving college.
Failure to plan is a plan to fail – This lesson is about protecting the students. To complete a successful closure, schools may need at least half a year (maybe more) from decision to last moments. Students need to be protected throughout this process. A 2022 Report by the State Higher Education Executive Officers Association (SHEEO) states that only forty-seven percent of students impacted by a closure end up enrolling another college (A DREAM DERAILED? INVESTIGATING THE IMPACTS OF COLLEGE CLOSURES ON STUDENT OUTCOMES). This highlights the critical need to plan a thorough and detailed teach-out. This can be achieved via internal or external paths. First, if the college allocates money and resources appropriately, they can design a plan that allows each student to complete their degree until all students have done so. Second, A college could seek external help through the relationships that they make. If the decision is to shut down operations, then it is obligatory to try to find a partner who will take the students and accept all already completed credits, honor their degree plan, tuition payment plan (even if the transfer college tuition rate is typically higher), and any accommodation plans. This is different than engaging in a business merger, whereby the accepting college swallows everything of the dwindling college, including all financial debt. Either of these options would avoid leaving any students stranded without courses to complete their degree, faculty and advisors to guide them, and any functional way to obtain their transcript in order to transfer on their own.
The story of Union Institute & University is quite unique, in both its’ establishment and its’ demise. The arc if its’ existence has provided lessons for today’s higher education landscape. As higher education experiences consolidation through closures, mergers and acquisitions, the historic consortium that ultimately gave birth to UI&U may have a resurgence. Universities that are nimble and innovative will either find success in its’ own existence, or keep their head enough above water to be attractive to a partnering institution. Predictive analysts believe hundreds of more colleges will close within the next five years. Hopefully, they are more prepared to do so ethically and in a dignified manner.
