By Josh Moody
Unpaid bills are threatening to put the campus up for auction. Small college that serves Native American students may have to close or go online.
A judge in November last year ruled that Bacone College owed Midgley Huber Energy Concepts, a small institution serving minorities, more than one million dollars. In September 2021 the contractor filed a suit against Bacone College, seeking payment of work done on Bacone’s heating and cooling system, along with interest and attorney’s fees.
In court documents included the $1 million contract that promised an annual savings in energy of $89 382. The non-payment of the services could now come with a higher price: Bacone College’s campus will be put up for auction.
Nicky Michael (interim president of Bacone College) was surprised to learn about the sale. Neither the college, nor its lawyers were notified in advance before the county judge ordered an appraisal.
Michael said to Inside Higher Ed that he was surprised by the news article.
Oklahoma’s oldest university will lose its campus if no action is taken. The small college that serves many Native American students is likely to suffer a financial blow after years of struggling.
Bacone College, which is waiting to see what happens with the upcoming auction on Dec. 14th.
There’s really not much we can do. Michael noted that we can wait and see, adding that a potential buyer may come forward who is interested in continuing the mission of the college. She added that it is not clear at this time if the college would be renting space from a buyer.
Another option being discussed is to move programs online.
Michael replied, “My gut tells me to get online.”
Bacone, the school that is in the middle of a limbo situation at the moment, is in between two semesters. The fall term ended in November while the winter semester begins in January. It is not yet known if the classes will take place on campus, or if they’ll be offered online.
Michael stated that the uncertainty caused by this led to 40 out of 60 college employees being laid off last week. Michael said that the students also feel anxious while they wait for more information.
Bacone’s current situation has the president fuming. Michael said that MHEC’s work was not up to standard, and included damage on a roof which caused a leak. She said that the college had a contract with MHEC, which stipulated they would not begin work until Bacone paid. A verbal contract made by a previous Bacone administration with MHEC, prior to Michael’s tenure as interim president allowed the contractor’s work to continue despite financial difficulties at the college.
A lawyer representing MHEC declined to comment on the request.
When Bacone didn’t pay MHEC filed suit. Next, a lien was filed to recover vendor costs. While MHEC was seeking $1.6 million in damages, records from the court show that Bacone had to face multiple lawsuits by other vendors. This indicates that the college had had trouble paying its bills.
Sodexo is a food and facilities service provider that manages national buildings. According to court documents, Sodexo sued Bacone for alleged contract breach in July 2020. They are seeking $1.1M for Sodexo’s “investments in construction and purchase of new kitchen equipment and dining rooms” as well as $162,000 in unpaid dining fees.
Sodexo finally dismissed the case in September 2020. Michael stated that the college paid off its debt to Sodexo during the first days of Michael’s interim administration.
Other lawsuits have also followed MHEC.
BSN Sports, a distributor of athletic clothing, filed a lawsuit against Bacone in May for breaching contract. Plaintiff is seeking to recover $34,495 plus interest, attorneys’ fees and costs for the services provided. Court records indicate that BSN Sports alleges the college has “refused” to pay for services rendered in 2021.
Thesis America sued Bacone in June for breach of contract. The company alleged that Bacone had failed to pay for the services. Thesis America is seeking to recover $86,631 in addition to interest and attorney’s fees. Ohio Security Insurance Company sued Bacone again in the same month for breaching contract. They are seeking $82,446 to cover alleged unpaid services.
A second lawsuit, filed by an organization named College Tournaments Hawaiian on Monday. The plaintiff is claiming breach of contract, and wants to recover $26,664 total from Bacone.
As Bacone’s finances have deteriorated in the past few years, the school has seen its student population plummet. From nearly 1,000 students a decade earlier, the Department of Education’s Integrated Postsecondary Education Database System shows that the number of current Bacone students is only 100.
Reviewing Bacone enrollment statistics shows that there was a steep drop five years ago. The college had enrolled over 900 students in fall 2017 before it was forced to temporarily close due to financial problems. Then-president Frank Willis announced to the community that the college would be laying off the majority of its employees. Willis was on his way out when he made the announcement. Ferlin, Willis’s soon to be installed successor, would take charge of national fundraising.
Willis, in 2018, warned that if those funding sources don’t arrive we may have to shut down Bacone.
Bacone enrollment did not recover from the temporary closure in 2018. According to data from the federal government, when Bacone’s fall semester began later in that year only 271 students were enrolled. The college’s headcount has remained below 300 since then, before dropping to 100 around this time. Michael said that the plan for this year was to accept fewer students, due to other challenges facing the college, such as financial issues and housing problems, which included mold in one dormitory.
Michael explained, “We kept the price low as we also have to take into account other financial issues.”
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