EDMC Loses $664M; Executives Receive Six-Figure Bonuses

Education Management Corp. lost $664 million during a difficult year in which the operator of for-profit colleges struggled with declining enrollment and intense regulatory pressure.

Compensation for CEO Edward West and CFO Mick Beekhuizen plummeted, mostly on the lower value of stock options. But two executives hired last year to handle legal and compliance matters, issues that have dogged the company, received six-figure bonuses that were guaranteed by their contracts.

The year was a difficult one for EDMC, marked by ongoing lawsuits over its recruiting practices and pressure from lenders to collect on $1.5 billion in debt. The lawsuits could prompt potentially hefty financial penalties and add to the company’s financial troubles.

Read more: http://triblive.com/business/headlines/6981929-74/compensation-total-executives#ixzz3GVevqNX1
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Clarion To Suspend Programs, Cut Jobs To Close $8 Million Deficit

Map of Pennsylvania highlighting Clarion County (Photo credit: Wikipedia)

Clarion University of Pennsylvania on Monday announced it will suspend two degree programs, eliminate 42.75 positions and launch several new programs in an effort to plug an $8 million budget deficit that could balloon to $12 million by 2015.

University President Karen Whitney said the moves are designed to position the state-owned university for the future following several years of sharp declines in enrollment and state subsidies.

“At the forefront of this plan is for our students to graduate and succeed in their professional careers, thanks to the marketable skills they learn at Clarion,” Whitney said.

Read more: http://triblive.com/news/adminpage/4960880-74/education-clarion-programs#ixzz2j2581ntI
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Drop In Enrollment At Kutztown University Twice That Of State System

Map of Pennsylvania highlighting Berks County (Photo credit: Wikipedia)

Almost 300 fewer students enrolled in Kutztown University in September compared to the previous year.

Since a 2010 peak, Kutztown’s enrollment has dropped 12 percent. The enrollment decline at Kutztown is twice the average drop – 6 percent – seen by the 13 other schools in the Pennsylvania State System of Higher Education.

All 14 state universities have been hard hit by funding cuts that usually mean more layoffs and program cuts.

Despite the drop in enrollment at Kutztown, there are no program cuts or layoffs contemplated for the coming school year, university spokesman Matt Santos said Monday.

Read more: http://readingeagle.com/article.aspx?id=515881

Mansfield University Announces Layoffs

Map of Pennsylvania highlighting Tioga County (Photo credit: Wikipedia)

Mansfield University plans to cut up to 29 full-time faculty positions and 25 administrative jobs due to a projected $14.3 million shortfall over the next two years, the school said Thursday. It blamed enrollment declines over the past three years and reduced state support.

Read more: http://readingeagle.com/article.aspx?id=514674

Edinboro University Deficit May Force Additional Cuts

Map of Pennsylvania highlighting Erie County (Photo credit: Wikipedia)

Edinboro University may face additional non-faculty staff and manager cuts this year beyond the 13 already announced to ease a budget deficit shaping up to be greater than the $5.5 million gap previously disclosed, a school spokesman said Friday.

Jeffrey Hileman could not say how much larger the deficit might be, but when asked the difference between the numbers, he said, “It’s not unsubstantial.”

He spoke after Edinboro administrators and faculty union representatives met for 2 1/2 hours to discuss the Operations and Workforce Plan unveiled Tuesday by Edinboro president Julie Wollman, which also recommended eliminating 42 faculty positions.

The plan, like one released at Clarion University a month ago, addresses rising costs, declining enrollment and sharply lower state aid.

Read more: http://www.post-gazette.com/stories/news/education/edinboro-deficit-may-force-additional-cuts-703272/#ixzz2ergwa2ze

Pennsylvania School Of Business Closing In Allentown

English: City of Allentown from east side (Photo credit: Wikipedia)

With its enrollment battered by the recent elimination of federal aid to students who lack high school diplomas, the Pennsylvania School of Business in Allentown will close next year, the school announced Thursday.

“We lost 50 percent of our incoming people,” PSB President Michael O’Brien said.

While it enrolled all types of students, the school specialized in helping those without high school degrees, O’Brien said.  With federal aid to those students eliminated as of July 1, 2012, enrollment plunged.  Over the last few days, school officials decided to close the doors in January, after the fall semester.

O’Brien informed students of the decision Thursday.

Read more: http://www.mcall.com/news/breaking/mc-psb-pennsylvania-school-of-business-to-close-20130912,0,52610.story