University of the Arts’ sudden closure draws state, city reviews

Higher Ed Dive

Laura Spitalniak

June 11, 2024

Dive Brief:

• City and state officials are investigating the abrupt closure of the University of the Arts, a private nonprofit in Philadelphia that shut down Friday with just one week’s notice.

• The Philadelphia City Council passed a resolution Thursday to look into UArts’ sudden closure and the effects it will have on the university’s students and staff, as well as on the city’s higher education ecosystem.

• The Pennsylvania Office of Attorney General is “involved” with the council’s inquiry and will explore possible legal ramifications, according to the office of Councilmember Mark Squilla, who introduced the resolution. The attorney general’s office confirmed Tuesday that it is reviewing the closure.

Dive Insight:

 Like many tuition-dependent colleges, UArts suffered from a steady decline in enrollment and revenue. In fall 2022, the university enrolled 1,313 students, down 38.2% from 2,126 a decade earlier, according to federal data. And it faced a budgetary shortfall of $12 million at the end of fiscal 2023, according to its most recent audit.

But in a notice, UArts officials attributed the abrupt closure to a shortfall of funds that “came to light very suddenly” due to significant and unanticipated expenses. They did not provide further details.

The state attorney general’s office Tuesday said it would be looking into how things unfolded at the university.

“We are very concerned by the sudden closure of University of the Arts, which has impacted students, staff, and the community,” said Brett Hambright, spokesperson for the attorney general’s office. “We are reviewing the circumstances of the closure and any transfer or loss of assets.”

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