The University of Lynchburg is offering buyouts to faculty in an ongoing effort to reduce its deficit.
The offer was first announced to tenured and tenure-track faculty on Nov. 6, Heather Bradley, vice president of enrollment, marketing and communications at the private university, said by email Monday. “We are not proposing to reduce faculty by any large number, and we will not be eliminating any academic programs.”
Bradley said the program is one of “many initiatives included in our strategic plan to build the university of the future.”
The university has more than 150 faculty members.
Bradley did not say how many positions the school is hoping to eliminate through this program.
“Our approach strikes a balance between financial responsibility and our commitment to reinvesting in the student and employee experience,” Daniel Hall, vice president and chief of staff of the president’s office at the university, said in response to a question about how much money the buyout offers could save the school. He said that the program is in its early stages and that the university is being “intentionally flexible as we evaluate faculty responses to this initiative.”
Lynchburg has been chipping away at a budget deficit of about $12 million that was revealed in late 2022.
The university announced in May 2024 that it would eliminate 12 undergraduate and five graduate programs. The university has eliminated 72 positions on campus since then, according to a website created by the university to address questions about its multiyear restructuring plan.
The university’s enrollment dropped to 1,425 this fall, compared to 1,525 last year.
Bradley said more than 40 anticipated international students were unable to get their visas in time for the fall semester, which impacted enrollment numbers.
In May, the Trump administration abruptly halted visa interviews for foreign students, then resumed them in June under stricter parameters. Delays have been reported since the interview process reopened.
Tied to its financial challenges, Lynchburg has been under scrutiny by its accreditor, the Southern Association of Colleges and Schools Commission on Colleges, for the past year. SACSCOC issued a warning against Lynchburg in December 2024 for failing to comply with five requirements relating to administrative effectiveness, financial responsibility and student outcomes.
The university maintains its accreditation while it’s under warning status.
The university submitted a report on its progress to remedy its compliance issues to SACSCOC in October, and the accreditor will announce next month whether it will continue the university’s warning status.
The university expects SACSCOC to extend its warning for a second year, according to its website, and says it’s “a good sign” because it has had “impressive results” over year one and can continue demonstrating that progress over a second year.
The university’s operating deficit for fiscal year 2025 was the smallest in five years, the university’s website says. In addition, its cash flow has improved. The university board of trustees has approved a balanced budget for the 2026 fiscal year, according to the website.
“Our operational liquidity now provides the University with cash on hand that significantly exceeds the critical 90-day benchmark,” the site reads. “Furthermore, the University carries no short-term debt and has actively reduced its long-term debt obligations.”
As of summer 2024, the university had nearly $54 million in debt, according to an audit.
A document posted by the university says the university’s budget deficit is currently under $2.7 million and that its endowment is worth more than $144 million, according to a position profile published this fall for the selection of a new president.
Alison Morrison-Shetlar announced in September that she would retire in June 2026. She joined the university as president in summer 2020. During her tenure, the university raised $39 million in the “silent phase” of a capital campaign, and hopes to reach its $40 million goal by the end of this year.
The university plans to announce its next president in spring 2026.