Thursday, November 14, 2024

Employee payouts on hold at closing Eastern Gateway

Eastern Gateway Community College, which is in the process of closing, does not have enough money to pay out vacation and personal days owed to employees, the Herald-Star reported.

Jim Corrin, president of the EGCC Education Association, told the local newspaper that the contractually required payouts are on hold until the Board of Trustees “has the appropriate funding and approval to pay the paid time off and sick pay to faculty and staff.” He added that despite the lack of funding for the payouts, top administrators continue to draw their salaries.

EGCC officials did not return a call from Inside Higher Ed on Friday afternoon.

The public community college in Ohio announced earlier this year that it would close by Oct. 31. EGCC faced a barrage of financial problems in 2023 after it was forced to close its free online college program for members of certain unions and their families, due to financial irregularities and scrutiny from the U.S. Department of Education, which accused the institution of violating federal financial aid rules. The free online program, launched in 2015, prompted an enrollment boom that saw the college’s head count soar from 20,000 to 40,000, many from out of state. The sudden closure of the program led to immediate financial issues at EGCC.

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