[Alumni-chat] Antioch Pres. is CEO of University if Chancellor Posit

[alanbenard (alanbenard at pobox.com)]

>The following are my thoughts on separating the College or the combination of the College and McGregor from Antioch University.
>
>1. Presently, it is my understanding, the College receives a University subsidy of more than $1.5 million from the University. I would assume that this resource would be eliminated in any formal separation from the University. If one assumes that endowment funds generate about 4-5% per year (the typical amount for many colleges), this allocation of $1.5 million would equal a living endowmentof $30-35 million. In effect,the new entity would have to raise $30-35 million just to continue its present financial base.
I'm given to understand that this "subsidy" -- which amounts to franchise fees paid by the non-College diploma mills -- stopped being paid in cash money in 2002 and is now something called an "allowable deficit." Meaning that the direct use of the "subsidy" hasn't been available for most of this decade. Funny how Al doesn't mention this, but instead spreads the misinformation on conjecture that nothing can be done without having a $30 million endowment to replace the "subsidy" income. 

Not to mention that the accreditation of the University units depends upon the use of the college library. Is this a "subsidy" or a fee for services?

>2. Since the present licensure of Antioch University rests with the University as the only legal entity, a formal separation from Antioch University would require the new entity to be licensed to operate in the State of Ohio, which would require a formal review by the Ohio Board of Regents. Given the history of the College, some people might expect that the new entity would have little trouble getting licensed to operate in Ohio.I am not sure at all that this would be a done deal given the financial status of the Colleg basically the College as a separate entity is financially bankrupt
Now, wait just a damn minute. Art Zucker told us that there is no legal entity called "Antioch Collge." There is only a legal entity called "Antioch University." How is the term "bankrupt" applicable to a unit of the corporate whole? It may be seen as failing to operate under a balanced budget withing the university as a corporation. 

If a separate corporation took control of Antioch's assets -- including real-estate and endowments -- then it would have capital against which it could borrow, as well as the pledged support of a growing number of alumni which could also be borrowed against. Eliminate the burden on the "separate entity" called Antioch College of financing the reported $75 million Seattle campus, and....