Arkansas Baptist College continues to struggle with financial difficulties, the D-G reports:
The flow of federal money to Arkansas Baptist College has been “delayed,” the college’s interim president confirmed Monday, days after he sent an email to faculty and staff warning that the school may not be able to issue paychecks on time. …
College officials for years have blamed cash-flow issues on an Education Department sanction that requires them to obtain reimbursement for allocated financial aid money rather than receiving it on the front end. The school has on multiple occasions struggled to pay staff members on time, including at least twice last year.
Officials on Monday did not make clear whether this delay is a result of the sanction or because of other issues.
The historically black college in Little Rock, which has periodically struggled to make payroll for years, is heavily reliant on federal funding such as student loans to make ends meet. The college, which went through a leadership upheaval last year, has been divided internally in recent years, with controversy arising over personnel and business decisions, real estate investments, and the lapsing of tax-free status for the college foundation.