Washington College Faces Financial and Leadership Challenges Amid Declining Enrollment

Washington College, a historic liberal-arts institution on Maryland’s Eastern Shore, is grappling with significant financial and leadership challenges. Enrollment has sharply declined to 923 students last year from 1,515 in 2011, intensifying financial pressures. The college has resorted to drawing 8% from its $300 million endowment to cover a $21 million operating deficit for fiscal 2024, surpassing the sustainable 5% withdrawal rate.

Leadership instability has also plagued the institution, with five presidents or interim presidents over the past decade. The recent departure of President Mike Sosulski to Lake Forest College has left the college in search of new leadership. Cost-cutting measures, including the elimination of nearly 40 staff positions and a 7% reduction in cabinet salaries, have been implemented to mitigate financial woes.

These challenges mirror wider trends affecting small liberal-arts colleges nationwide, exacerbated by the pandemic and shifting student preferences towards business and technology degrees. Despite the proven value of a liberal-arts education, skepticism about its economic viability persists.

The college's struggles have sparked concerns among Chestertown residents and alumni about its impact on the local economy and community. As a major employer and cultural center, the institution's health is vital to the area. Initiatives like the launch of a new business school, funded by a $15 million alumni gift, and a modest uptick in freshman enrollment offer glimmers of hope. Yet, the college's future largely depends on the upcoming presidential appointment and its leadership's ability to navigate the changing educational environment.