Santa Monica College faces increased scrutiny after years of financial struggle

Santa Monica College has money problems. Spending has outpaced revenues over the last three fiscal years. And the college doesn’t have enough in its coffers to pay for retirement benefits.

That’s according to the Accrediting Commission for Community and Junior Colleges, the body responsible for evaluating community colleges. The organization has moved to “enhanced fiscal monitoring” of SMC.

In a statement to LAist, Mac Powell, president of ACCJC, said, “Enhanced monitoring is part of the Commission’s routine annual process for identifying and working with institutions that may be experiencing financial pressures; it is not, by itself, an accreditation sanction or adverse action.”

More than 25,000 students are enrolled at SMC, with over 50% identifying as first generation. The school has around 320 full-time faculty and 852 part-time faculty. On their website, SMC touts itself as the “#1 Transfer College” to University of California schools, Loyola Marymount University and the University of Southern California.

In a letter to Santa Monica College informing them of the increased monitoring, ACCJC Vice President Melynie Schiel wrote that a three-year decline of the ending cash balance and multiple open labor agreements factored into the “at risk” designation.

Santa Monica College declined an interview with LAist. But in a post online, Santa Monica College President Kathryn Jeffery wrote that the at-risk category was largely “backward-looking.”

So what does ‘enhanced fiscal monitoring’ mean?

Gaining accreditation from a body like the ACCJC allows SMC to qualify for federal funding and to distribute financial aid to students.

Every year, institutions accredited by the ACCJC submit financial information, including reserves, operating revenues and deficits, salary and benefit costs, enrollment trends and audit findings.

If institutions fall in the “at risk” category like Santa Monica College, they are placed on increased monitoring. This helps ACCJC “better understand the circumstances, remain informed about the institution’s response, and track progress over time,” Powell said.

During this time, ACCJC staffers will meet with representatives from Santa Monica College “and the institution provides information regarding the circumstances contributing to its fiscal condition and the actions it is taking in response,” Powell said.

Is SMC’s accreditation at risk?

In short: No.

“Santa Monica College is accredited by ACCJC and, at this time, is not in danger of losing its accreditation, nor is an adverse accreditation action by the Commission currently anticipated,” Powell said. “The purpose of enhanced monitoring is precisely to identify concerns early and provide appropriate oversight while institutions work to address them.”

Are there any other colleges in Southern California in the same boat?

Powell said ACCJC typically doesn't make public whether a college is subject to increased monitoring.

“We are aware that Santa Monica College has chosen to publicly disclose its own fiscal monitoring status. That disclosure was made independently by the institution and does not reflect a change in ACCJC's policy regarding the confidentiality of this information for other member institutions,” Powell added.

What is Santa Monica College doing to address their fiscal woes?

Jeffery wrote in a memo to employees posted on the college website that the at-risk rating “does not account for far-reaching actions the College has taken since,” noting actions like layoffs and contract non-renewals, employee furloughs and salary freezes; and cutting vacant positions.