HSU cleared to receive rainy-day covid-19 aid

FILE — Henderson State University is shown in this 2019 file photo.
FILE — Henderson State University is shown in this 2019 file photo.

A special legislative committee has approved sending $825,000 in state rainy-day funds intended for covid-19 relief to Henderson State University.

The money means the cash-strapped public university in Arkadelphia can end furloughs for 205 12-month contract employees for the remainder of the fiscal year, which ends June 30.

"We are grateful to the members of the Arkansas state Legislature and to Gov. Asa Hutchinson for believing in the educational mission of Henderson and supporting the university during this difficult financial time," said Elaine Kneebone, acting Henderson State president.

The vote late Wednesday "was very encouraging to the people of Henderson who have worked tirelessly and sacrificed personally to strengthen the university's financial foundation over the last 10 months," she said.

[CORONAVIRUS: Click here for our complete coverage » arkansasonline.com/coronavirus]

On Wednesday, the Arkansas Legislative Council supported, with some dissent, the university's request, recommending approval to the six-member special committee in charge of the state's rainy-day fund earmarked for covid-19 relief. The committee members are House and Senate leaders and the party leaders for each chamber.

The special committee's deciding vote was Senate President Pro Tempore Jim Hendren, R-Sulphur Springs, who switched his vote from "no" to "yes" after lengthy debate on the matter Wednesday afternoon.

Hendren said Thursday that he was among the "many" lawmakers who were concerned about whether the money would be properly spent by the university, which is nearly broke after years of financial mismanagement.

Hendren also had objected to disbursing the funds without a full hearing. Doing so would be OK for emergencies, but aid for a higher education institution didn't constitute an emergency, he said.

[DOCUMENT: Henderson State University’s request for funding » arkansasonline.com/529request/]

After Wednesday's discussion, in which Arkansas State University System President Chuck Welch and Arkansas Division of Higher Education Director Maria Markham answered questions from lawmakers for more than an hour, Hendren said he was confident that new leadership was addressing the issues at Henderson.

"I think it was important for the Legislature to hear that before sending an $825,000 check to the university," Hendren said.

Henderson, prompted by its financial woes, plans to merge into the ASU System by next year.

Before learning that Henderson would lose $871,000 in expected state appropriations because of reduced state general revenue related to the pandemic, the university had anticipated a slightly positive margin -- about $23,000 -- for the year.

With only a few days of cash on hand, the university requested $825,000 in rainy-day funds from lawmakers, with the support of Hutchinson.

Henderson's leadership opted for furloughs after the special committee rejected that request. Leaders then lobbied to get the request on the larger Arkansas Legislative Council agenda for consideration after Hendren said the emergency protocol without such a hearing wasn't appropriate for the request.

The council recommended the funding Wednesday, and the special committee revoted and approved the funds late Wednesday night via written vote.

Again voting no was Sen. Bart Hester, R-Cave Springs, and Rep. Marcus Richmond, R-Gravelly.

Sen. Keith Ingram, D-West Memphis, voted in favor, as did House Speaker Matthew Shepherd, R-El Dorado, and Rep. Fred Love, D-Little Rock.

After the first vote, in which the special committee rejected the request, Hester had expressed concern that Henderson and its foundation continued to pay former President Glen Jones Jr. for a year of sabbatical after Jones resigned last summer.

Jones' resignation followed the revelation that Henderson, which had previously pitched a budget increase and faculty pay raises to trustees, had actually finished the previous fiscal year with a nearly $5 million deficit.

Information for this article was contributed by Michael R. Wickline and Tony Holt of the Arkansas Democrat-Gazette.

A Section on 05/29/2020

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