Limestone University may have a ‘lifeline’ to avert closure

Dive Brief:

• Limestone University may have the “financial lifeline” it needs to avoid shutting down and maintain its in-person courses and operations, its board of trustees said Tuesday. The announcement did not disclose details on the funding source. 
• The private Christian institution, in South Carolina, signaled last week it could be forced to close or turn to online-only operations without an immediate cash injection. The board said it has tabled those discussions for now and plans to reconvene no later than April 29.
• However, the 179-year-old university will proceed as though it will be online-only after the semester ends, Limestone President Nathan Copeland said in a statement. “I regret the uncertainty of the situation, but we must be exceptionally cautious,” he added.

Dive Insight:

 In a statement, board Chair Randall Richardson was frank about just how deep Limestone’s financial troubles run. 

“Last week, we were at the brink of a possible closure or transition to online-only classes,” Richardson said. “Now, we are pausing that discussion so we can wait on more information about a potential financial lifeline.”

Officials offered no details on the financing, saying only that “a possible funding source has surfaced” that could mitigate the university’s current crisis. A university spokesperson declined Wednesday to share more information about the funding source.

Previously, officials said the university would need a $6 million emergency fund to stave off closure and keep its physical campus and activities running. 

In the university’s announcement Tuesday, it said the proposed cash infusion would “stabilize operations and give the university the opportunity to pursue long-term solutions that preserve its on-campus identity.”

Richardson said the board was “cautiously optimistic about the future of Limestone,” but added a hedge: “We want to emphasize, this is just a possibility at the current time.”

Limestone attributed its financial woes in part to falling enrollment. Between 2018 and 2023, its fall headcount dropped 27% to 1,782 students, per federal data. The university said Tuesday that enrollment now stands at about 1,600 students.

High costs have also added pressure. The university has faced persistent budget deficits — $9.2 million in fiscal 2024, following an $11.4 million gap in 2023, according to its latest financials. 

Limestone has tapped its endowment to fund its operations amid the financial strain. Between fiscal years 2023 and 2024, Limestone’s net assets declined by more than $12 million, to $61 million, as the university ramped spending from its endowment.

In its latest financial statement, the university’s auditors issued a “going concern” warning, indicating they found “substantial doubt” about Limestone’s ability to continue operating over the next year.

For now, Limestone’s uncertain fate remains a predicament for officials, employees and students alike as they try to plan for upcoming semesters — a challenge which the university’s leaders acknowledged. 

“We will update everyone as soon as we know more,” Richardson said. “Please be patient and continue to pray for a viable solution to save this historic university.”