Following a specially called meeting on April 24, the trustees of Seabury-Western Theological Seminary said the school is in a state of financial crisis that threatens its survival. It has given notice to all faculty and eliminated nine staff positions.
 
During the special meeting, the trustees were presented with recommendations by a committee charged with reviewing finances. The board meeting was scheduled last February after it was informed that income from tuition, fees, and endowment resources would be insufficient to overcome an annual deficit of about $500,000. The seminary currently has an estimated $2.9 million in accumulated debt, a figure likely to rise to more than $3.5 million later this year because of transition costs.
 
Tuition at Seabury last year was $13,000, but the seminary estimates that the actual cost per student was closer to $50,000. In 2006, the board began a strategic planning process. Last October, the case statement estimated that it would require at least $10 million to eliminate the current debt load and another $8.7 million was needed for program development and campus renovation. The board determined that the $18.7-million figure significantly exceeded Seabury’s fund raising capabilities.
 
“Our primary work right now is caring for the people in the Seabury community whose lives are being dramatically disrupted,” said the Very Rev. Gary Hall, dean and president of Seabury-Western. “While we need to look to what Seabury might become in the future, we have focused almost all of our energies on the immediate concerns facing those around us.”
 
Declaring a “financial exigency,” the technical term for a financial crisis that threatens the survival of the institution, allow the trustees to end faculty tenure and terminate faculty positions, resulting in immediate and long-term savings. Faculty will receive full salary and benefits in the 2008-2009 academic year and teach a reduced course load so that they can begin to search for new positions. Laid-off staff will receive separation benefits that include severance pay, compensation for unused vacation continued health-care benefits, as well as unemployment benefits and career counseling.
 
“Faculty understand the precarious financial situation of the seminary and have appreciated being consulted in the decisions leading to the board’s declaration of exigency,” said the Rev. Ruth A. Meyers, academic dean and professor of liturgics. “While there is a range of emotion as they face an uncertain future, there is also tremendous good will and support for one another, for students and staff, and for the institution.”
 
The seminary administration said it is optimistic that it can resume offering the doctoral programs in preaching and congregational development that have been a hallmark of Seabury for many years.
 
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