GREENSBORO — Greensboro College will lay off seven full-time and three part-time faculty and staff members, the school announced Thursday. The college did not announce which positions would be eliminated.
The regular part-time faculty salary budget will be eliminated, faculty course loads will increase and compensation for overloaded classes will be done away with, according to a news release.
The moves will help create a “practical budget” for 2009-10 and also allow for half of the 20 percent salary cut announced in April to be reinstated, the release said.
“It should go without saying that we are deeply saddened that any of these reductions were needed,” Robert Stout, chairman of the school’s board of trustees, said. “However, these steps allow us to move toward full recovery and assisted in the development of a realistic budget.”
The 171-year-old Methodist affiliated school has been facing serious financial problems for months. A debt load of more than $19 million has led the school to put up its campus and most of its $17 million endowment as collateral to Bank of America, according to school officials. The bank has extended the college’s credit line, allowing it to make payroll.
In the past two years, the college borrowed about $3.5 million from its endowment, and the fund was battered in the downturn.
The school is restructuring with help from the Charlotte-based NaviscentGroup. The school also is searching for an interim president, following the retirement of longtime President Craven Williams.
Contact Joe Killian at 373-7023 or joe.killian@news-record.com
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