Mills College declares emergency as its financial woes worsen

Historic Oakland women’s college faces a deficit of $9.1million

Facing a $9.1 million deficit, Mills College has declared a financial emergency for the first time in its 165-year history.

The Oakland women’s college, which along with other single-sex colleges has struggled to attract students in recent years, will likely be forced to cut more than 30 staff and faculty positions.

“These changes will be difficult for the community to absorb, but I think they’re entirely forward looking,” said Elizabeth Hillman, who is less than a year into her tenure as president of the Bay Area’s only women’s college.

Nestled against Interstate 580 in East Oakland, Mills serves about 1,300 undergraduate and graduate students. Its operating budget for next year is $57 million and the current endowment is hovering around $177 million.

Those figures might not sound dire, but most endowment funds are restricted and Hillman insists the school isn’t generating enough revenue to support itself.

The school prides itself on its ability to offer a small, liberal arts education to low-income students who wouldn’t otherwise be able to afford it. But most students pay significantly less than the school’s posted $44,765 tuition, leaving Mills shelling out financial aid and scrambling for money. In 2015, the school’s budget shortfall was $5.7 million, significantly below the $9.1 million figure anticipated for the budget year that starts in July. If left un- checked, Hillman said, that figure would likely continue to grow at about the same rate.

To combat its financial troubles, Hillman says she plans to leverage the school’s Bay Area location. The former UC Hastings College of the Law provost is in talks to house some UC Berkeley students on its campus and to enroll them in some classes at Mills. Carol Christ, Berkeley’s incoming chancellor there, served as president of the all-women Smith College, and Hillman sees her as an ally.

There are also conversations about reducing tuition, reorganizing some departments, and even sending all sophomores off campus for a “study away” experience.

Hillman did not offer specifics, saying her team was just now beginning to discuss options with faculty. But she acknowledged that some on campus are nervous, including tenured faculty, who stand to lose their jobs as the school looks for ways to cut costs. The Board of Trustees will likely vote on a final plan, which would take effect in July, next month.

“There’s some trepidation,” Hillman said in an interview Wednesday. “I also think there’s a sense of possibility.”

Juliana Spahr, an English professor at the school who sat on the budget committee, said she’s not sure yet what Mills’ future holds, but she’s happy Hillman is at the helm. “I personally feel a lot more safe with (Hillman) than I have in any other president or administration prior to this,” she said.

The last president, Alecia DeCoudreaux, faced criticism for failing to tackle the school’s financial problems.

Spahr hopes the school can continue to be a small liberal arts school for women, a desire many students and alumni share. Graduate programs are already co-ed. But past debates about enrolling male students at the undergraduate level have drawn fierce opposition and that’s not something Hillman is talking about.

But some former students, including Kathy Schwartz, think the school needs to re-evaluate its purpose. Schwartz graduated from Mills in 1969 during a time, she recalled during a phone interview, “when you wore gloves and hats into San Francisco.”

“I’ve felt for some time that the Mills model was not sustainable,” she said. Why not transform into a highly technical community college of sorts that caters to East Bay residents? she asked. “Become something that’s practical and useful in the community,” she said, adding, “I’m sorry to see the school in trouble, but I don’t think it’s the end of the world.”

Hillman doesn’t think so either. After declining for several years, enrollment is stabilizing. The school has 177 deposits from students expected to enroll this fall, up from around 140 in 2015.

“This declaration doesn’t mean that Mills is about to close,” she said. “We fully intend to be here for another 165 years.”

“I’ve felt for some time that the Mills model was not sustainable. Become something that’s practical and useful in the community,” — Kathy Schwartz, former student, Mills College