Jun 26, 2021 2 min read

CALIFORNIA – California University of Pennsylvania is seeking a delay of a merger with two other state schools over a long list of concerns cited in a resolution approved Friday.

The resolution adopted at a special trustees meeting expressed concerns about Cal U.’s $5.7 million surplus and $27.4 million in reserves being used to pay down debts at Edinboro and Clarion universities.

“Our role is limited,” board Chairman James T. Davis said.

The state System of Higher Education is under a directive to reduce spending at its 14 universities, resulting in plans for this merger along with that of three others in northern Pennsylvania. Its board of governors plans to approve the integrations next month.

The Cal U. trustees also issued concerns that its merger would have a negative impact on current and prospective students, alumni, donors and friends, according to the resolution. It also expressed concerns about protecting the school’s brand strength and identity.

“It’s incumbent of us to protect the university,” said Washington County Commissioner Larry Maggi, who also is a Cal U. trustee.

The resolution states that Clarion will end the 2021-22 fiscal year with a $6 million deficit in its reserves. Meanwhile, Edinboro will be facing a $2.3 million deficit next term and a $6.8 million deficit in its reserves.

The three universities also have built up considerable debts.

Cal U.’s debts at the end of this month will be $132.8 million, according to state system records. Edinboro lists debts of $109.4 million and Clarion, $4.4 million.

Much of the combined debts at the western schools is attributed to under-occupied residence halls, state system records show.

In the fall of 2019 Edinboro’s residence hall occupancy rate was 42.5%, state system records indicate. Cal U’s occupancy rate was listed at 78.4% and Clarion, 79.5%.

The Cal U. resolution “questions the ability of the new university to achieve financial sustainability” and projects the new university will operate under a deficit until 2027.

State system spokesman David Pidgeon said it values “input from all stakeholders, and will certainly review the information provided by the trustees at Cal U.”

Pidgeon also said the “integrations would provide the best path forward for these universities, allowing them to do more together for our students than any one of them can do alone.”