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Greensboro College President Craven Williams bristled last week that some of the coverage of his school's financial problems had been inaccurate and misleading.

But the story's headline remained unmistakably clear: the venerable little school (enrollment: 1,300) on the western edge of downtown is in serious trouble.

Its endowment has dropped from $19 million to $12 million. It is in arrears with a variety of creditors, with debts totaling $974,508, and is struggling to make ends meet.

Even so, Williams said he remained confident that the tiny Methodist liberal arts institution, founded in 1838, will weather the storm.

'There, but for the grace of God ...'

A consultant has been hired to manage a fiscal recovery plan. A line of credit from Bank of America should provide precious breathing room.

"We have demonstrated our ability to work with the bank in these down times," Williams said. "It's very, very promising right now."

Also, projected fall enrollment looks solid, with graduate school applications up significantly, to 272, versus 154 applications during the same time span in 2007 and 2008.

It is sad but not surprising that one of our local private colleges teeters near the financial brink. Two of Greensboro College's local neighbors, Bennett College and Guilford College, have confronted their own financial storms in the recent past.

"We're pulling for Craven," said Bennett College President Julianne Malveaux, whose school has regained firmer footing after facing the prospect of closure several years ago. "There, but for the grace of God.... "

At Greensboro College, there have been layoffs, cuts in benefits and salary reductions of 20 percent, from Williams on down.

Now is especially precarious because, even in good times, the college's cash flow tightens during the summer.

That's the case for all private colleges and even some public ones, said Keith Chabotar, president of Guilford College and former chief financial officer at Bowdoin College.

Last summer, Guilford cut $2.7 million from its budget by freezing salaries and eliminating 20 positions. This year, it is on pace for both record fall enrollment and record fundraising.

Chabotar credits the quick recovery to a quick reaction. "The last time this had happened we probably waited too long to make cuts," he said.

A community asset

As for why the rest of us should care about Greensboro College's fate, that should be obvious.

Although it is a private institution, the school belongs to the community.

It is a valued local employer.

It is a part of the cultural and intellectual fabric of the community.

It is the second-oldest institution of higher learning in Greensboro (Guilford was founded in 1837).

It is in the city's best interests that the college bearing its name succeeds.

One unsettling footnote: Some faculty say they have been told not to speak to reporters. A school spokeswoman has said in turn that the president would choose which faculty could speak to media.

Williams denies that such a policy exists. "None whatsoever," he said last week. "I would never be the one to tell you who to interview."

Williams said faculty are free to speak their minds. However, an internal memo to faculty could be interpreted otherwise. "Again," it says in bold type at the very top, "confidentiality of sources on this and all issues is critical to protect the jobs of faculty and staff."

The case for openness

The college's administration may feel stung by anonymous faculty comments that have sharply criticized Williams. Yet, if anything, a big chill on faculty voices actually may encourage such comments and engender fear and distrust.

That's easy to say from the outside looking in. But Guilford's Chabotar said so, as well, in a Feb. 13 article in The Chronicle of Higher Education, headlined, "How to Communicate in a Difficult Economy."

"A lack of confidence can make a bad economy even worse," Chabotar wrote. "There is a reason why most depressions before 1929 were called panics.

"In addition, many first-rate ideas can be uncovered when people with experience at a college, even at lower levels, are given scary but reliable data and asked, 'What do we do now?'

"Top administrators should not only be open with information but should also solicit feedback and advice."

Chabotar added last week: "You crow when it's positive, and you've got to own up when it's negative."

Then he quoted Moliere.

"Doubts are more cruel than the worst of truths."