Warned of Layoffs, Oakland City U Workers Aren't Paid

"Oakland City University told the state government April 1 that it would lay off all 167 of its employees June 1, perhaps for good. On May 8, employees' paychecks didn't arrive, and they're still waiting to get paid. A spokesperson for the Higher Learning Commission, which accredits the university, told Inside Higher Ed it is "reaching out to the institution regarding this public report" and "will continue to explore the situation.""

"Todd Mosby, the university's associate vice president of advancement, development, marketing and communications, told Inside Higher Ed Friday, "We've never said we would close." The institution is working with two donors, both companies, to pay the missed paychecks and to keep the university's doors open next academic year, he said. Mosby didn't name either company. He also said he didn't know why the money from the company that's promised to cover the paychecks hasn't yet reached the university's bank accounts."

""The university didn't have the money; we've got a donor that's going to provide the money, and the money is working its way through the banking system," he said. He also declined to release any details on a "strategic partnership" with the second company. "I can't give any assurances," Mosby said. "None of us can give any assurances.""

"He also said he didn't know how the university got into this financial situation; it wasn't due to a loss of students, because enrollment has increased, he said. According to Education Department data, the university had 640 students as of fall 2024, down from 2,086 a decade before that-but that decline was almost entirely in part-time students. The university's most recent IRS Form 990 filing, for the tax or calendar year beginning in 2023, showed it had a $4 million operating deficit and a $4.4 million deficit the year before."

Oakland City University in Indiana reported plans to lay off all 167 employees by June 1 and employees did not receive paychecks on May 8. Employees are still waiting to be paid. The Higher Learning Commission, which accredits the university, is reaching out to the institution and continuing to explore the situation. The university’s associate vice president said the university has not stated it would close and is working with two donors to pay missed paychecks and keep doors open next academic year. The spokesperson did not name the donors and said he did not know why promised funds have not reached the university’s bank accounts. Enrollment has increased, though student counts show a large decline in part-time students over the past decade. The university’s IRS filings show operating and overall deficits in recent years.

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