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Facing financial pressure, Birmingham-Southern College is hoping for a $30 million lifeline from Alabama lawmakers to stave off a potential closure later this year. But state legislators recently told Al.com that given the college’s private status, it is unlikely to receive such a bailout.
Alabama House Speaker Nathaniel Ledbetter told Al.com that pumping state dollars into a private college would set the wrong precedent.
“At the end of the day, I don’t know that it’s the state’s job to bail out schools, private schools,” he said. “It’s a slippery slope. If it’s Birmingham-Southern this year, who is it next year? What’s the next college or what’s the next big issue?”
Other lawmakers, Republicans and Democrats alike, concurred that such a bailout is unlikely.
Birmingham-Southern is seeking state dollars in addition to its own fundraising efforts. The college aims to raise $200 million by May 2026. So far, donors have promised $45 million.
The current financial crisis stems from issues dating back more than a decade, including facility investments that weakened the endowment and added debt, as well as errors in administering financial aid that cost the college millions of dollars and prompted significant layoffs.
