Memphis Rescues LeMoyne-Owen With Pledge of Millions
MEMPHIS Tenn.
Financially strapped LeMoyne-Owen College has collected about $4 million in pledges in recent months, allowing classes to begin as planned on Aug. 20.
The school needed up to $4 million by the end of June to pay debts and avoid losing its accreditation by the Southern Association of Colleges and Schools.
Interim president Johnnie Watson said the city of Memphis pledged $3 million over three years. The first $1 million was delivered June 29. School officials received other private pledges and also are hoping for another $3 million combined from Shelby County and the state, pending legislative approval.
Opponents argued that the city’s pledge should be considered illegal because it gives public funds to a private institution, but a Memphis judge in June ruled against barring the city from giving the money.
In approving the pledge, the Memphis City Council said it is constitutional because it helps an institution that creates jobs and benefits the community.
In the last decade, LeMoyne-Owen’s debt has more than doubled from nearly $5.3 million in 1997 to nearly $9.75 million in 2005 while its enrollment dropped by more than 40 percent, to 589 this school year. It’s accreditation has been in jeopardy, with SACS placing it on probation for the last two years.
