A nearly century-old private college in Great Falls is on the ropes as it confronts a massive budget deficit. The University of Providence lost funding from the hospital system that supports it. Administrators are now laying off staff and changing course offerings in a bid to stay afloat. Montana Free Press reporter Matt Hudson is following the restructuring and joined MTPR’s Austin Amestoy with details.
Austin Amestoy So, Matt, as you've reported, the University of Providence enrolls more than 600 students and employs nearly 250 people. So, what's causing its current budget crisis?
Matt Hudson Yeah, so this goes back to about 2017 when the school – it was then known as the University of Great Falls – they announced this new partnership with Providence Health System. It's based out of Washington State, but it has a very large network of hospitals and clinics, including here in Montana. And as part of that partnership, the university changed its name to the University of Providence. It increased some of its health care program offerings. And in return, the health system agreed to cover the school's budget deficit. And in recent years, that's been about $8 million annually. And now this year, the health system is experiencing, you know, its own financial challenges. It has market challenges of its own. And in the middle of that, one cost that the health system has decided to cut is that budget support for the University of Providence in Great Falls. And that support is expected to end by 2027.
Austin Amestoy Oh, so it sounds like the hospital system was sort of plugging the leaky hole in the University of Providence ship here. So what steps is the university taking to write that chip now?
Matt Hudson Yeah, the one thing they've acknowledged up front is that, you know, the university should have taken action earlier to close that budget deficit. Now that they're facing the issue in the time that they have now, they have a little bit of time to make these changes, and university officials have created these task forces over the spring and summer to make a plan to right the ship. And the main goal related to that is to make a plan to restructure and eventually build a stable revenue base. And that process will likely include more layoffs in the future, cuts to course programs that have low enrollment, and the school also plans to add some courses that they think will be attractive to students and quickly fill up. The university will also launch a fundraising campaign. They'll rely on their alumni, their donor base. They have a goal of $16 million to raise over a few years. They'll also look at leveraging their real estate. That could include building housing on some empty land. They could sell existing property or they could lease buildings that they have currently to third parties. It will all be a huge lift for the university in the next, you know, year, couple of years. But University President Carolyn Goulet feels that these are necessary steps that need to happen very soon and keep the school's doors open.
Austin Amestoy A lot happening in the near- to long-term future at the university. Are the challenges that the University of Providence are facing, Matt, unique to it, or is there a larger trend here with with similar colleges?
Matt Hudson The support in the budget from Providence Health was unique to the university, but there are longer-term factors in the market that haven't worked in the university's favor. And the same for smaller institutions around the country that are experiencing those. And these include, like, cultural attacks on higher education institutions as these sorts of liberal bubbles.
There are also changing career aspirations for young people. And in many ways, the traditional liberal arts college that we all know isn't staying current with those needs. And so we're seeing colleges large and small experiment with course programs that cater to like specific trades, computer and network fields and other growing sectors. There's an example right across the street from the University of Providence at Great Falls College MSU. They just announced a new program for electrical grid operator training, and that's part of like a private-sector donation. And those are kinds of ideas that smaller institutions are adopting.
Austin Amestoy It may be early, Matt, but I am wondering if the university has an idea when it will know if it's going to make it through all of this.
Matt Hudson It is early to say. I think the short answer is no. They don't know how this is all gonna shake out, but they've been very clear that they need to take this action. It can be drastic, it can be swift, and they haven't shied away from that. And I think they're hoping the best case for this is that they come out financially solid, of course, but also kind of forcing themselves into a a newer, more modern model that will be attractive to students here in Great Falls.
Austin Amestoy Once again, Montana Free Press journalist Matt Hudson sharing his reporting with us today. Matt, thank you.
Matt Hudson Thank you very much.
