The Birmingham City Council on Tuesday approved an “intent to commit” one-time funding to help the financially struggling Birmingham-Southern College stay open and viable as it prepares to resume classes this month after a threat of shutdown.

The resolution of intent did not mention a specific funding pledge from the city.

“We’ve been talking in the range of $2.5 to $5 million for about a year,” Birmingham-Southern College President Daniel Coleman said after the meeting. “Obviously, we prefer closer to $5 million.”

The resolution said funding from the city remains contingent on the college first securing funding through the state’s newly established Distressed Institutions of Higher Education Revolving Loan Program. The state passed legislation, signed by Gov. Kay Ivey on June 16, that will allow the college to take up to a $30 million loan to help it stay open.

The college has requested $30 million in assistance from the state, $5 million from Birmingham and $5 million from Jefferson County.

“This is part of an overall package that includes funding from the state, and we hope, we’ll approach Jefferson County and start working with them as well,” Coleman said. “This package will stabilize the college for the next three years as we continue our campaign to raise private funds so we have an endowment and make sure we never come back again to ask for help. We’re about $45 million into our campaign and we’re looking to get to about $200 million.”

Coleman said college athletes have been moving on campus this week and freshmen will be moving into dormitories starting Friday in time for the first day of classes on Aug. 23 as the college begins its fall semester.

“Our students will be coming in on Friday; I’ll be helping them move in the freshman dorms,” Coleman said. “Our students are real excited to come back.”

Birmingham City Council member J.T. Moore said details need to be worked out guaranteeing that the city gets many returns on its investment.

“We want to make sure that we’re investing in a school that is going to invest back into our students and into our city,” said Council member J.T. Moore. “We don’t want to have any more vacancies in our city, in terms of blighted areas, so that’s a major concern for us. But we also want to make sure that Birmingham-Southern is a good faith partner to our city schools as well.”

Coleman agreed with that goal. “We want to make sure that whatever investment the city makes is a great investment,” he said.

Birmingham City Council President Wardine Alexander voted against the resolution to commit funding to Birmingham-Southern College, suggesting that the money would be taken from funds used to fight blight and invest in blighted neighborhoods, and that public schools such as Lawson State Community College deserve the city’s support more than a private college. “Let’s help Lawson State when they need help,” she said.

Coleman said 2023 fall enrollment will be in the range of about 750 to 775 students. With increased financial stability, he’s hoping the college will get back to an enrollment of about 1,200 to 1,500 students in the future.

BSC has been running deficits every year and draining its endowment. It has gone from a $48 million endowment in 2012 to between $20 million and $25 million in endowment now. The college’s debt has been reduced from $68 million in 2012 to about $27 million now.

Birmingham-Southern College formed from a 1918 merger of Southern University, dating to 1856, and Birmingham College, dating to 1898, both founded by the Methodist Church.

Council member Hunter Williams said keeping Birmingham-Southern College open means $70 million in annual economic impact, with 300 to 400 employees and an average of 1,000 students. “That’s a big impact on the city of Birmingham, and really the entire metro area,” Williams said. “One thing Birmingham absolutely needs is a way we can keep young talent in our city.”

Williams said the city needs to take into account the economic impact Birmingham-Southern College has, but the void it would create, “or economic loss if that facility and institution is not there,” he said.

“The resolution that the council voted up today really solidifies its intent to invest in Birmingham-Southern” said Council member Hunter Williams said after the meeting. “This is a very strong message that the City of Birmingham is intent on supporting Birmingham-Southern.”

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