New Jersey City University should partner with larger institution, state monitor says

New Jersey City University should partner with a larger educational institution so it can survive after years of fiscal mismanagement that have left the state-run school with crippling debt, according to a monitor appointed last year to oversee the university.

The proposed partnership could range from joint academic programs and shared administrative services to a full merger, the monitor, Henry J. Amoroso, said in a report he issued Tuesday. However, remaining an independent city university would require more state funding than the school receives now, and even then it would continue to struggle with fiscal challenges for “many, many years,” Amoroso said.

“I am not pushing for a merger,” he told reporters. “What I push for is an objective with board oversight and administrative participation and analyzing what all of our options are and what might be best.”

Amoroso is the first fiscal monitor appointed to oversee a state-run college under a new law that requires such monitors when the schools face financial troubles.

Andrés Acebo, interim president at the Jersey City university, said in a statement that university officials are reviewing the plan and its recommendations.

“I remain confident in our community’s resiliency and the brilliant promise of its future. Our work will continue to be emboldened by our students, faculty, staff, community, and local and State leaders who have unwaveringly poured so much into the unrelenting renewal of our indispensable mission, and I remain committed to honoring it in a manner worthy of the trust and hope our students and their families bring onto our campus every day,” he said.

Amoroso’s report comes nearly two years after the university’s trustees declared a financial emergency in June 2022, replaced top administrators, slashed academic programs, and laid off staff. Gov. Phil Murphy soon called for an investigation into the finances of the 97-year-old school, which serves mostly low-income students of color.

In May 2023, a state comptroller report found former university president Sue Henderson, along with other administrators, improperly budgeted $14 million in federal pandemic relief money to address the school’s financial crisis — and when that plan backfired, Henderson was allowed to resign with a $288,000 severance payment and new car.

The report released Tuesday details the factors that helped create New Jersey City University’s financial mess, including declining enrollment, poor real estate investments, aging facilities that do not attract more students, and $287 million in debt.

“That perfect storm created a challenge that was complex, and that complexity relates to, as my report underscores, a macro issue — the size of debt and the size of capital needs,” he told reporters.

Amoroso said as part of his review he had complete access to the university’s financial statements, including audits and budgets, held conversations with the university’s chief financial officer, attended board meetings, and had weekly calls with board members.

Aside from his recommendation that New Jersey City University partner with another institution, Amoroso recommends the school increase revenue by selling non-core assets and leasing its surplus real estate; reduce its debt; make capital investments to attract new students; and increase its pursuit of substantive grants.

Another recommendation is to replace at least four members of the university’s board of trustees. The board’s current structure is “not well-aligned with the strategies and tactics a fiscal turnaround will demand,” according to the report. The board doesn’t function well and doesn’t meet frequently enough to provide ongoing oversight of the budget, it says.

All these recommendations come with benchmark dates. Some are as short as 45 days from now, while others should be addressed by 2026 to put the university on the best path forward, Amoroso said.

Amoroso will continue monitoring the school’s finances through at least Sept. 14, 2025, the report states. He’ll continue to attend all board meetings, meet with administration and state officials, and collect internal and external data to determine whether the school is on a path to fiscal stability.

In the next 18 months, Amoroso will also create and provide a report on the school to the state’s higher education department. He expects to exit from oversight at the start of 2026 if New Jersey City University meets all its benchmarks.