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Financial Woes Lead Episcopal Church-Affiliated University to Cut 50% of Staff

Saint Augustine’s University in Raleigh, North Carolina. |

A historically African American university affiliated with the Episcopal Church is cutting half of its employee positions due to financial struggles that threaten its accreditation.

Saint Augustine’s University (SAU) in Raleigh, North Carolina, announced on Saturday that it plans to “eliminate several positions this month, including part-time and full-time non-faculty roles and some vacant positions.”

The four-year liberal arts university aims to reduce 67 staff positions, comprising 37 full-time faculty and 32 adjunct faculty roles, totaling around 50% of its workforce.

This decision precedes an important meeting with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) scheduled for next month. The university described its actions as “a significant move toward fiscal responsibility.”

To maintain its accreditation, SAU reported that it has reduced expenses by approximately $17 million in fiscal year 2024 compared to fiscal year 2023 and is currently settling multiple outstanding balances with vendors.

“The momentum we are building is promising. While difficult, we acknowledge the seriousness of our financial challenges, and these measures are crucial for our long-term sustainability,” stated SAU Interim President Marcus H. Burgess.

He added, “Our ongoing efforts to stabilize the financial condition of Saint Augustine’s University are now showing tangible results — our community is responding positively, and we are excited about our future. Together, we will work diligently to rebuild our foundation.”

Founded by the Episcopal Diocese of North Carolina in 1867 to educate freed slaves after the Civil War, SAU is situated on a 105-acre campus near downtown Raleigh and has an average enrollment of about 1,000 students. However, the university has experienced financial difficulties in recent years; it was placed on probation from 2014 to 2018 but later regained full accreditation.

In last December, SACSCOC trustees voted to remove SAU from membership as an accredited institution due to financial stability concerns. In response, SAU launched the Falcon Pride Initiative Fundraising Campaign in February to help preserve its official accreditation.

While an appeals committee later upheld the initial ruling, the university has since transitioned most of its classes from in-person to online formats, with these changes taking effect in April.

Additionally, the U.S. Department of Labor announced an investigation into the university amid reports that employees had not received paychecks for multiple pay periods in May. In July, an arbitration committee appointed by SACSCOC issued a unanimous decision supporting the reversal of SAU’s accreditation removal but noted that the university would remain on probation.

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