Cash-strapped Lon Morris College votes to employ budget reorganization specialist

Cash-strapped Lon Morris College votes to employ budget reorganization specialist
News

POSTED: Wednesday, May 9, 2012 - 8:42am

UPDATED: Saturday, May 26, 2012 - 3:13pm

The ongoing financial problems at Lon Morris College in Jacksonville have led to a decision by the college to employ a reorganization firm.

Lon Morris faculty and staff met with the school board on Monday and made the unanimous decision to employ a reorganization specialist.

The school has been plaqued by cash flow problems for more than a year.

College staff often receive their paychecks late, and the school began offering fewer scholarships in an effort to save money.

The school board hopes that the reorganization specialist would assist the school in reviewing their budget and making the improvements that would be most beneficial to the two-year college.

 

Lon Morris College released the following statement to KETK:

On Saturday, May 5, 2012, the Board of Trustees of Lon Morris College (LMC), a faith-based 150 year-old college, voted unanimously to engage a reorganization specialist.  The specialist will advise the board on strategies to improve the financial position of the college.

The board is dedicated to finding resources to ensure that employees will be paid in full.  All options for the viability for the future of the college are being explored and decisions will be made with respect to the best interest of the school, students, employees and the community of Jacksonville

 

Here is a statement from the Lon Morris Board Board of Trustees issued the following statement to KETK on Wednesday, May 9th, that reiterates the same information:

On Saturday, May 5, 2012, the Board of Trustees of Lon Morris College (LMC), a faith-based 150 year-old college (oldest 2-year college in Texas), voted unanimously to engage a reorganization specialist.  The specialist will advise the board on strategies to improve the financial position of the college.

According to the official statement from the college:

•the board is dedicated to finding resources to ensure that employees will be paid in full

•all options for the viability for the future of the college are being explored and

•decisions will be made with respect to the best interest of the school, students, employees and the community of Jacksonville.

Over the past several years, The Texas Annual Conference of The United Methodist Church (TAC) has carefully monitored the reports of financial challenges
provided by the LMC board and administration. The conference, a co-signatory for a $1 million loan, also assisted in securing a $250,000 loan from the General Board of Higher Education and Ministry in an effort to help stabilize the finances of the college.  Conference funds have also been provided to First United Methodist Church of Jacksonville to help with emergency expenses for Lon Morris employees who have missed paychecks this spring and earlier. 

“We remain very concerned about the students, faculty/staff and the entire Lon Morris community,” says TAC Bishop Janice Huie.  “We ask for prayers for all those in the Lon Morris family but especially for the Board of Trustees who are called to make difficult yet necessary decisions over the next few weeks.”

Comments News Comments

Why haven't the Alumni been notified and asked for help? This is just heart breaking.I was in the class of 63.

Lawrence Mooney

"College staff often receive their paychecks late..."

As of May 20, 2012, none of the faculty have received their last three paychecks (no pay since March 31). I think the school is intentionally sugar coating the facts here.

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