The Southwestern Baptist Theological Seminary has experienced an operational deficit amounting to about $140 million due to mismanagement.
The institution's financial difficulties have been made much worse because of the decrease in the number of students enroling full-time. The enrolees have decreased by a major two-thirds (67%), while costs have increased by a third (35%).
Fiscal Mismanagement and Enrollment Decline Plague Southwestern Baptist Theological Seminary
According to the article in Christianity Today, since the SBC's Cooperative Program covers the tuition expenses of Southern Baptist Convention (SBC) students, a crucial source of income for the denomination's six seminaries, the decline in SBC students is especially alarming. Southwestern Baptist Theological Seminary's overall enrollment has decreased dramatically, according to figures from the Association of Theological Schools, from the equivalent of 2,138 full-time students in 2003 to just 1,126 full-time students in the autumn of 2022.
The Association of Theological Schools utilizes a different formula than Southern Baptist seminaries to calculate the full-time equivalents. The decrease in enrolment has consequently had a negative effect on the institution's tuition revenue. In an effort to address the sizable deficit, Southwestern Baptist Theological Seminary has turned to leveraging its reserves and making distributions from its endowment.
Former President of Southwestern Baptist Theological Seminary Accused of Financial Misconduct
The Southwestern Baptist Theological Seminary also has revealed alarming information about Adam Greenway, its former president, in a news release released on Wednesday. According to the article in The Tennessean, the seminary claims that Greenway misused monies from the seminary for personal house improvements and broke credit card rules. Following a tumultuous board of trustees meeting last week that was characterized by disagreements about financial disclosures relevant to Greenway's tenure, these facts became public.
The letter from the seminary voiced extreme worry over the pattern of bad financial management that was noticeable during Greenway's term in office. It also recognized the efforts of a few seminary staff members who, in spite of opposition, strove to uphold the law and fight the excessive spending.
Over $1.5 million in seminary funds were used for repairs to the president's home, according to a task force investigation of spending under Greenway, who took over as president in February 2019. About $60,000 was spent on holiday decorations, as well as $25,000 on art, over $11,000 on an espresso machine, and a startling $180,000 on HVAC maintenance.
According to the shared article in Yahoo! News, Greenway is accused of breaking seminary rules by using his seminary credit card for personal costs in addition to the exorbitant repairs. This included a $920 purchase of a decorative metal gator head from the University of Florida as well as first-class flights to the 2022 SBC annual meeting and framing of individual diplomas.
The information about Greenway's financial wrongdoing placed the light on a long-standing problem with financial management at Southwestern Seminary, a problem that existed before his appointment. The task force's conclusions, which detailed numerous instances of poor management, were deeply regretted by the seminary.
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