Washington College Faces Financial and Leadership Challenges Amid Declining Enrollment

Washington College, a historic liberal-arts institution on Maryland’s Eastern Shore, is navigating through turbulent times marked by financial difficulties and leadership instability. The college's enrollment has dramatically decreased to 923 students last year from 1,515 in 2011, intensifying financial pressures. This has led to staff reductions, salary cuts, and an unsustainable 8% withdrawal from its $300 million endowment to cover a $21 million operating deficit in fiscal 2024, surpassing the recommended 5% threshold.

The institution has witnessed five presidents or interim presidents over the last decade, with the most recent, Mike Sosulski, leaving to lead Lake Forest College outside Chicago. In response to these challenges, Washington College has adopted several austerity measures, including cutting nearly 40 staff positions, reducing cabinet salaries by 7%, and implementing furloughs for top-paid administrators.

These struggles are emblematic of wider issues facing small liberal-arts colleges nationwide, exacerbated by the pandemic and shifting student preferences towards business and technology degrees over traditional liberal arts. Despite evidence supporting the value of a liberal-arts education, skepticism about its economic benefits remains.

The college's difficulties have sparked concerns among alumni and Chestertown residents about the potential repercussions for the local economy and community, given its role as a major employer and cultural center. Initiatives to rejuvenate the institution include the launch of a new business school, funded by a $15 million alumni donation, and reports of a modest rise in freshman enrollment this fall. Nonetheless, the college's future largely depends on the selection of a new president in the coming two years and the leadership's capacity to navigate the changing educational environment.