Central State University, Ohio’s Only HBCU, Placed On Fiscal Watch

The school hopes to get off the fiscal watch within three years.

Central State University has been placed on fiscal watch by the Ohio Department of Higher Education due to financial challenges.

The department’s chancellor, Mike Duffey, made the announcement on Oct. 25, as reported by WKBN. With the declaration, the sole HBCU in Ohio will receive support as it undergoes a plans to improve its status.

Central State must create a financial recovery plan, which will include increased financial reporting requirements and engagement from the board of trustees. Moreover, a state auditor will perform an evaluation on the school, in addition to consulting on its budgeting and reporting procedures.

Classes are expected to run as normal for the university, which was founded in 1887.

“It‘s not something that any university wants to be on,” explained Central State’s president, Morakinyo Kuti, to Dayton Daily News. “When I came on, I knew that things were not what they were supposed to be, so we wanted to inform the state as soon as possible, and we also wanted to get their assistance as soon as possible.”

Upon taking office in September 2023, Kuti found discrepancies in the HBCU’s financial reports. Alongside unpaid balances to school vendors, Kuti discovered its 2023 audit was incomplete. The mounting issues led to Kuti informing the state about the matter.

“My goal, our goal as a university, is to get out as soon as possible,” Kuti said. “We asked for the state support and assistance because the future is bright at Central State University, but in order for us to get to that bright future, we have to get our house in order.”

Moreover, Central State has suffered from a significantly decreased online enrollment, dropping from 4,000 to 1,000.

“Central State is very important to the Miami Valley,” Ohio Gov. Mike DeWine said. “It supports the whole State of Ohio. It has not only a storied past, but it’s got a great future. We’re optimistic about Central State’s future, but this is certainly a bump in the road, … The quicker it can get dealt with, the better.”

Central State previously went on fiscal watch in 2015. This time, the school hopes to get off the watch within three years.