Washington College Faces Financial and Leadership Challenges Amidst Broader Liberal Arts Crisis

Washington College, a historic liberal-arts institution on Maryland’s Eastern Shore, is navigating through significant financial and leadership challenges that mirror the difficulties faced by small liberal-arts colleges nationwide. The college's enrollment has dramatically decreased to 923 students last year from 1,515 in 2011, intensifying financial pressures and leading to staff reductions, salary cuts, and an increased draw on its $300 million endowment. This situation underscores the precarious position of liberal-arts institutions in today's educational and economic climate.

The college's financial strain is evident in its decision to withdraw 8% from its endowment to cover a $21 million operating deficit for fiscal 2024, surpassing the sustainable 5% withdrawal rate. Leadership instability has further complicated the college's efforts to stabilize its situation, with five presidents or interim presidents over the past decade. The recent departure of President Mike Sosulski to lead Lake Forest College outside Chicago has left the institution in search of new leadership at a critical time.

Cost-cutting measures, including the elimination of nearly 40 staff positions and a 7% reduction in cabinet salaries, have been implemented to address the financial shortfall. These challenges are not isolated to Washington College but reflect a national trend where small liberal-arts institutions struggle to attract students amid shifting preferences towards business and technology degrees. Despite evidence supporting the value of a liberal-arts education, perceptions about its economic viability continue to influence student choices.

The college's struggles have raised concerns among alumni and Chestertown residents about the potential impact on the local economy and community, given its role as a significant employer and cultural hub. Efforts to revitalize the institution, such as the establishment of a new business school supported by a $15 million alumni gift and a slight increase in freshman enrollment this fall, offer a glimmer of hope. However, the future of Washington College largely depends on the appointment of a new president and the ability of its leadership to adapt to the changing educational landscape. For more information on the challenges facing liberal arts colleges, visit https://www.insidehighered.com.