On April 4, Northland College’s Board of Trustees declared financial exigency, setting off a formal process designed to provide a final, good-faith effort to save the College. Following is more detail on financial exigency and what the process looks like moving forward.
What is financial exigency, exactly?
Financial exigency, in simple terms, signifies a severe financial crisis that threatens an institution’s ability to fulfill its core academic and operational functions in both the short and long term. It signals that a drastic reduction in expenditures is necessary for the College’s health and survival. Northland’s financial exigency process is on an accelerated timeline due to the severity of its current financial state and the needs of students, who are making plans for next fall.
It is also an outlined process in the Faculty Handbook, which is based on best practices from the American Association of University Professors. Financial exigency allows the College to actively address budget challenges it would not otherwise be able to within such a short timeline while still honoring the process of shared governance.
Why did Northland choose financial exigency?
Financial exigency is one last mechanism in the face of financial crisis, and it will likely lead to restructuring and personnel reductions to bridge the deficit. That is why Northland wanted to first try other means to save the College. A successful fundraising appeal would have secured a future for Northland without compromising academic offerings for students and the livelihoods of faculty, staff, and employees. However, without that funding in place, financial exigency is the only option that remains, with the exception of closing.
What does the process entail?
As part of the Board’s motion, the financial exigency process will focus on three key areas in the coming weeks:
- Collaboration to refine a new structure for the College
- Further exploration of current and possible future budget options and adjustments
- Additional donor engagement
Dedicated committees are leading the process of refining the structure and exploring budget options. Meetings started with the Faculty Welfare Committee, the Faculty Ad Hoc Exigency Committee, and Faculty Council. The committees have distinct responsibilities and are working together with a shared objective to prepare a single proposed plan.
1. Faculty Ad Hoc Exigency Committee
- Comprised of the dean of the faculty, the Faculty Council president, and three department chairs.
- Primary responsibility is to evaluate Northland’s academic offerings—programs, curriculum, and faculty positions—looking for areas to streamline and focus.
- This committee is also getting regular input from two other faculty groups (the Faculty Welfare Committee and Faculty Council), as well as admissions to inform their exploration and proposal development.
- The Faculty Ad Hoc Exigency Committee will work with the Operations and Budget Committee, the president, and the Board chair to develop a proposal for Northland academics that the Board will then evaluate.
2. Operations and Budget Committee
- Chaired by the dean of admissions and the executive director of information technology & facilities.
- Includes representatives from faculty and staff, budget managers, and other key departments of the College.
- Tasked with evaluating and streamlining Northland’s overall operating budget, including physical plant, services, and administrative staffing.
- Working closely with the Faculty Ad Hoc Exigency Committee to ensure proposed changes help solve for both short- and long-term viability.
3. President and Board of Trustees
- Led by President Chad Dayton and Board Chair Ted Bristol.
- Actively collaborating and consulting with both committees throughout the process and keeping the Board informed as needed.
- Focused on providing data and information, answering questions, and ensuring overall proposal alignment.
Meetings to advance the exploration and proposal development have been occurring daily and will continue through the two-week period.
