Architect of Birmingham-Southern bailout âdisgustedâ by stateâs denial of funding
The lawmaker who created a loan program to save Birmingham-Southern College says she’s “disgusted” at recent efforts to deny funding to the school.
Rep. Juandalynn Givan, D-Birmingham, worked with a local delegation to create $30 million in state funding for the small liberal arts college. The school said Wednesday that its application for $27 million of that funding has been denied by state treasurer Young Boozer — and that it’s suing him.
In an interview with AL.com Wednesday, Givan said Boozer “acted in bad faith throughout the entire process.” She said she received a call last week about the denial, and at the time, lawmakers were hopeful that negotiations wouldn’t fall by the wayside.
“I’m very disgusted today. I’m very disgusted,” she said. “I think it’s absolute foolery, what has gone on here.”
Birmingham-Southern officials revealed the extent of the school’s financial woes last winter, and spent months working with lawmakers to come up with a solution. The loan program was signed into law in June, and contained just enough money – $30 million – to fulfill the college’s bailout request. Officials originally applied for a lump sum of $27 million to avoid depleting the fund, then proposed a plan to gradually draw $30 million over the course of three years – neither of which were granted.
A lawsuit filed in Montgomery Circuit Court Wednesday claims Boozer urged legislators to vote against the bill before it went to the House floor last spring.
Then, after Gov. Kay Ivey signed the bill, Boozer went to Attorney General Steve Marshall to seek an advisory opinion on the constitutionality of the loan program. In August, Marshall denied his request and Boozer finally launched the application on the treasury’s website.
“He showed his hand on day one,” Givan said. “It’s not his money. He showed his hand day one. So my thing today is, is he above the legislature? Because obviously he is. And he proved that when he denied that loan in bad faith.”
Circuit Judge James Anderson granted an expedited hearing set for Oct. 19 at 1:30 p.m. at the Montgomery County Courthouse. Officials are asking the treasurer to disburse the loan by the end of the month.
In the meantime, officials plan to continue normal operations, including recruitment for the class of 2024.
Givan, who represents the Bush Hills neighborhood where the college is located, said she’s concerned about the impact a closure could have on the historic Birmingham community.
The area is still reeling from closures of a local hospital and historically Black college, she said, and can’t stand to lose another community fixture.
“These institutions are businesses that went bust and there was no plan of action,” she said. “We saw further decay and dilapidation in the community, further blight.”
A closure would cost the city 300 jobs, school officials said, and impact at least another 1,200.
“I’m very disheartened with the corporate community in Birmingham,” Givan said. “I’m very disheartened with the city of Birmingham. I’m very disheartened with the county commission. Because this is Birmingham-Southern.
“I am a graduate of Miles College, the Miles College,” she added. “I’m very proud of my educational institution. But I fought for Birmingham-Southern even against my beliefs with regards to public-private dollars, because I know what it will do to the community.”
Officials are urging school supporters, students and alumni to contact Boozer directly to urge him to comply with state law.
“There’s a lot of moving parts and components at play,” Givan said. “Everybody’s talking about us trying to see what they can do. But if we put so much power in one man, ultimately, he’s the decision maker.”