Cash strapped, Vermont’s St. Michael’s College wins approval to tap $30M in restricted funds

St. Michael’s College in Colchester, Vermont, has received court approval to use up to $30 million from restricted endowment funds to cover operating deficits, underscoring the Catholic college’s severe financial strain. The probate court ruling allows partial withdrawals from 41 donor-restricted funds over the next two years, including scholarship and endowed-chair funds. Following years of enrollment declines, the move provides a financial runway as the college implements a turnaround plan that is likely to include job cuts, academic consolidation, and new tuition incentives. Enrollment has fallen nearly half over the past decade, to just over 1,000 students.