One of Iowa’s oldest universities, Iowa Wesleyan University, will be ending its 181 years of education, closing the campus this Spring.
The decision came after “a combination of financial challenges,” which include increased operating costs due to inflationary pressures, changing enrollment trends, a significant drop in philanthropic giving, and the rejection by Gov. Kim Reynolds of a proposal for federal COVID funding, the university said in a news release.
“It is with deep sadness that we announce the Board of Trustees has made the heartbreaking decision to close our beloved Iowa Wesleyan after 181 years as an educational pillar in this community,” University President Christine Plunkett said in a statement. “Our focus is now on assuring our over 850 students have a smooth transition to another educational opportunity.”
Gov. Reynolds expressed her deepest condolences to everyone involved at the university and community.
“My thoughts are with the students, faculty, and staff who are stunned by this announcement, and the people of Mount Pleasant who have long revered the university as a pillar of their community,” Reynolds said in a statement Tuesday.
“The state is committed to supporting them during this time of transition,” Reynolds added. “I have directed the Iowa Economic Development Authority and Iowa Workforce Development to reach out to community and business leaders, and work together to keep the local economy strong.”
The university’s physical campus will be in the hands of the U.S. Department of Agriculture after it closes.Systemic Financial Issues
University chairman of the Board of Trustees Robert Miller reassured university staff and students that the administration did everything it could to save the university from closing.
“We know our action will be felt deeply by all Iowa Wesleyan University faculty, staff, students, families, alumni, donors, Mount Pleasant, and the entire region of Southeast Iowa,” Miller said in a statement.An independent firm conducted an audit and found that Iowa Wesleyan had “taken a $26.1 million loan from the U.S. Department of Agriculture using its campus as collateral,” according to the governor’s statement.
Wesleyan’s auditor also reported ongoing fiscal concerns, citing that “significant operating losses and reduced liquidity raise substantial doubt about its ability to continue as a going concern.”
“Based on this and other factors, the independent accounting firm determined that providing one-time, federal funds would not solve the systemic financial issues plaguing the university,” Reynolds said.
The Governor’s office had “$122 million in requests from other universities and community colleges statewide,” Reynolds said.
“With this information, I made the difficult decision to not pursue the university’s funding request.”
Despite the university’s closure, current and prospective students will have other opinions of schools to attend in the area to continue their degrees.Iowa Wesleyan secured “teach-out agreements” with four other private colleges in the region: William Penn University in Oskaloosa, Upper Iowa University in Fayette, the University of Dubuque, and Culver-Stockton College in Canton, Missouri, “so students can complete their degree,” Plunkett said.
Students who opt to attend one of the colleges “are guaranteed admission at their current cost and financial aid levels,” she added.
“As a higher education institution that serves rural Iowa, we are disappointed in the lack of state support for this effort. All our indicators have been trending in a positive direction, but we needed funding to buy some additional time,” Miller said. “We are just heartbroken.”
Some of the most notable alumni from Iowa Wesleyan include famed astrophysicist and University of Iowa space pioneer James Van Allen and Peggy Whitson, a retired NASA astronaut.
The Epoch Times has reached out to Iowa Wesleyan for comment.
