The New Jersey City University (NJCU) Board of Trustees voted unanimously (7-0) “to pursue a strategic merger” with Kean University at a special meeting this afternoon.
By John Heinis/Hudson County View
” … In announcing today the path forward, the Board – in consultation with President Acebo, members of his administration, and the State Monitor – satisfies the Secretary of Higher Education’s benchmark to identify a fiscally sound New Jersey public institution of higher education and begin the process of memorializing the terms and conditions of a potential partnership on or before March 31, 2025,” the board said in a joint statement.
“Furthermore, the NJCU Board of Trustees recognizes and acknowledges the importance of the State’s support in making the proposed merger with Kean University successful.”
New Jersey Secretary of Higher Education Brian K. Bridges, Ph.D has named “seasoned expert” Henry Amoroso as the state fiscal monitor for NJCU in the midst of their budget woes back in August 2023.
Since then, Moody’s and Fitch Ratings moved the university’s credit rating from negative to stable, as HCV first reported. Fitch indicated that NJCU has roughly $46.5 million in available funds and a total debt of approximately $337 million in debt.
The Fitch-adjusted debt is broken down as $136 million of bonds, $9.5 million notes, $53 million of debt-equivalent lease obligations, and $138 million of debt-equivalent pension obligations.
“After an extensive and deliberative process, the Board of Trustees has chosen to pursue a strategic merger with Kean University as called for under the April 2024 OSHE Transition Plan,” NJCU Interim President Andrés Acebo said in a statement.
“This decision — reached after careful and mission-focused review — meets a critical benchmark outlined in the plan and underscores a commitment to ensuring NJCU’s enduring role as an indispensable model for accessible urban public higher education.”
He added that this is not just an an administrative step, but “the deliberate construction of a bridge to our second century,” indicating that Kean is a great partner to collaborate with going forward.
“In the coming weeks, we will begin a formal due diligence process with the signing of a Letter of Intent between our universities,” Acebo further stated.
“Throughout this journey, transparency and active community involvement will remain at the core of our efforts. Your insights and contributions are essential as we navigate this transformative period and shape the best path forward.”
Montclair State University had also been considered, but did not ultimately end up coming up for a vote from the NJCU board.
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