Southeastern U. failed despite cash influx from D.C. coffers
By: Michael Neibauer
Examiner Staff Writer
October 4, 2009
The now-shuttered Southeastern University received a $1.5 million gift from D.C. taxpayers three months before the school was notified that it would lose its accreditation -- and eight months before it canceled classes.
The Middle States Commission on Higher Education revoked Southeastern's accreditation as of Aug. 31, after concluding that the school lacked general quality, was losing faculty and was destabilizing financially. The university subsequently scrapped its fall semester, effectively shutting down, while many of its students transferred to other accredited universities in and around Washington.
The accreditation decision came down March 5, three months and a day after the District gave the private university $1.5 million to, according to the city's budget, "support the second-phase renovation of the 130-year-old university's campus and operating expenses tied to the university's accreditation process."
The $1.5 million purchase order was issued Dec. 4 by the deputy mayor for planning and economic development. The earmark was requested by the Fenty administration and included in the fiscal 2009 budget.
"We've asked them to not spend any additional money," Sean Madigan, a spokesman for Mayor Adrian Fenty, told The Examiner on Friday. "We are working with them to recover any unspent funds."
So what did the District get for its money?
Southeastern spent every dime, said Peter Canine, the school's chief financial officer and one of the university's 20 remaining employees. Among the categories were planning design and project management, infrastructure improvement, interior construction, code compliance, furniture and equipment, and technology.
"As the CFO of this organization, we feel D.C. got its money's worth," Canine said. "From our perspective it was worth trying to save a 130-year-old institution."
Southeastern appealed the revocation decision to no avail.
"We were unsuccessful, but we tried," Canine said.
The $1.5 million was one of the largest earmarks in the District's 2009 budget. It was not the only taxpayer money collected by Southeastern.
The university netted $250,000 in 2009 to support its Allied Health programs, and nearly $110,000 from the Child and Family Services Agency over the past two years for "real property rental." The Department of Employment Services also has spent more than $46,000 there for "training and instruction" since 2008.
Ward 6 D.C. Councilman Tommy Wells said he knew little about the $1.5 million earmark. But it is critical, he said, to somehow save Southeastern from complete downfall. There have been talks of merger with another institution.
"I know that we're working with the board of directors of Southeastern University to determine the future of the school there," said Wells, who represents the university campus. "The collapse of SEU is a catastrophe for the area."
