Cheyney University appears to have gained a new lease on life by having its accreditation conditionally reaffirmed through 2022-23. That lifeline, however, hinges on a pledge Gov. Tom Wolf made to help the nation’s oldest historically black university climb out from its mountain of debt.

Wolf promised to help the university eliminate the $40.3 million Cheyney borrowed from the 13 other universities in the State System of Higher Education and the chancellor’s office to balance its budget over a six-year period.

But according to a House GOP spokesman, that pledge was made without consulting the GOP-controlled General Assembly.

“If this is something the governor is serious about, it strikes us as odd to make this pledge in secret and not inform anybody about this,” said House GOP Appropriations Committee spokesman John O’Brien.

“We were not engaged in conversations prior to his announcement,” said Senate GOP spokeswoman Jennifer Kocher. “We look forward to seeing his plan for how he will accomplish that.”

Wolf spokesman J.J. Abbott said in a statement the governor’s pledge reflects the essential role that the system universities and Cheyney play in educating Pennsylvanians and ensuring all students can get an education that can prepare them for a successful career.

“As such, the governor committed to working with partners, including [the State System], to address any impacts that the elimination of Cheyney University’s debt to [the system] may have, and is exploring a variety of options to do this in a financially sustainable and responsible way,” Abbott said.

A university’s accreditation is critical to its students being eligible to receive federal and state financial aid. Most of Cheyney’s 618 students rely on this aid to help cover their college bills.

On Monday, the Middle States Commission on Higher Education, the regional accrediting agency, announced that the governor’s office provided “written assurance of the elimination of Cheyney University’s debt” to the system. A statement from the commission’s vice chair James Sunser made it clear that Cheyney’s financial instability threatened its accreditation and Wolf’s pledge “greatly improved the institution’s financial outlook.”

System Chancellor Dan Greenstein told PennLive’s editorial board on Tuesday that he looks forward to working with the governor and General Assembly to see how this pledge gets fulfilled.

Cheyney’s President Aaron Walton said he too is unclear of the details. “There’s work to be done to make it happen but it’s going to happen,” he said.

“We have finally reached that pivotal point where Cheyney is going to move forward rather than backward and we’re going to do it aggressively," said Cheyney University President Aaron Walton about having the university's accreditation conditionally reaffirmed.

As part of a prior arrangement that was worked out within the State System, Cheyney agreed to balance its budget for three years and pay back $5.9 million of the money it owed the other universities and the chancellor’s office to have the remaining $34.4 million of its debt forgiven.

For the first time since 2011, the university announced in June it ended the year with a balanced budget and had a $2.1 million surplus. However, it is worth pointing out that Wolf authorized $2.4 million in a one-time “unrestricted grant” from the state Department of Education that helped with Cheyney’s budget balancing.

Walton said his understanding of the governor’s commitment is that Cheyney’s debt would be forgiven and the governor would make whole the other universities and the chancellor’s office “for the support they gave Cheyney.”

O’Brien, the House GOP Appropriations Committee spokesman, said the General Assembly is interested in ensuring the financial stability of all 14 system universities. But lawmakers are troubled they were only informed of Wolf’s pledge through media reports and the Middle States’ statement, he said.

“We’re hoping there’s not going to be some faux Farm Show Complex lease back kind of scheme or move money around unilaterally to give Cheyney this debt relief,” O’Brien said. “Hopefully, we will hear more from members of his administration about the plan and not have to find out about it through media reports.”

The commission’s accreditation reaffirmation came with two conditions.

The first requires Cheyney to provide by March 1 evidence there has been a resolution to its debt to the State System as well as a separate $29.5 million debt to the U.S. Department of Education that has been negotiated down to $14.3 million.

The money owed to the U.S. Education Department relates to mismanagement of student aid dollars by prior university administrators from 2011 to 2015. Walton said the university is entering into a repayment plan with the department within the next week; the repayment plan will last for several years.

The second condition to putting its accreditation in good standing requires Cheyney to produce a report, due Sept. 1, showing its finances are sustainable.

Middle States commission spokesman Brian Kirschner said if the university fails to comply, it could lead to the commission taking actions that could range from seeking more information to once again putting Cheyney’s accreditation in a jeopardized state.

But Walton sees a bright future ahead for the beleaguered university that has been on a downward trajectory for at least decade and a half.

The school saw its enrollment grow by 142 students this fall after a decade of battling enrollment declines. He expects that trend will continue climbing above 800 next year and above 1,000 in 2021-22 now that its accreditation appears to be no longer at risk. Freshmen retention is also up, as is its academic standards for admission.

“We see this as clearing the way for us to increase our enrollment and continue with the high academic standards that we are trying to achieve,” Walton said. “We have finally reached that pivotal point where Cheyney is going to move forward rather than backward and we’re going to do it aggressively.”

Cheyney’s financial woes led to it cutting more than $8 million in recurring expenses since 2017. That entailed cutting the number of majors the school offered from 19 to 15, eliminating 32 faculty and staff positions, demolishing four mothballed buildings, and eliminating its Division II football program.

At the same time, Walton has endeavored to help make Cheyney financially sustainable through forging public-private partnerships. These partnerships will generate rent payments from entities that locate in retrofitted campus buildings and promise to provide Cheyney students with paid internships.

Three of those partnerships have already been announced with Thomas Jefferson University, Starbucks, and Epcot Crenshaw, a company that provides solutions to environmental problems. Walton said as many as five or six more will be announced soon.

“We don’t take our foot off the gas pedal,” Walton said.

Greenstein said he hopes to see a lot more of those partnership programs with third-party institutions at other system universities.

“So many of the things Cheyney has done under enormous pressure are creating models,” Greenstein said. “What’s interesting about Cheyney to me is it is potentially creating a pathway that other [historically black colleges and universities] might themselves follow.”

Jan Murphy may be reached at jmurphy@pennlive.com. Follow her on Twitter at @JanMurphy.

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