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SG-049 Presbyterian college · Sitka, AK 2007

Sheldon Jackson College — Alaska’s Oldest College, Boarded Up in a Single Week

Lifespan
1878–2007 · 129 yrs
Peak Enrollment
~300 (1970s; ~100 FT + 200 PT at the end)
Killed By
insolvency + deferred maintenance
Fate
Closed
LocationSitka, AK
AffiliationPresbyterian Church (USA)
Campus todayHome of the Sitka Fine Arts Camp and museum

Summary

Sheldon Jackson College, in Sitka, Alaska, the oldest institution of higher learning in the state, traced its lineage to an 1878 Presbyterian mission school for Alaska Native children and suspended operations in the summer of 2007 with several million dollars of debt and no cash to make payroll. On Friday, June 29, 2007, the administration told faculty and staff that their employment would end in thirty days; the roughly one hundred full-time students and two hundred part-timers learned in the same stroke that the only college in their town, on a campus their families had attended for four generations, was closing. The suspension was framed as temporary, a pause to "determine a financially viable future." It was, in fact, the end.

The institution that closed had carried two histories uneasily in one body. The first was a nineteenth-century mission boarding school — the Sitka Industrial and Training School — founded to educate, and to assimilate, Tlingit and other Alaska Native youth, an enterprise that for decades required Native parents to indenture their children for years and that taught English and Protestant American culture at the deliberate expense of their own. The second was a small twentieth-century liberal-arts college, accredited as a junior college in 1966, that drew students into environmental studies, outdoor leadership, and education, ran a working salmon hatchery, and counted roughly a third of its enrollment as Alaska Native into its final years. The campus on Baranof Island was the same ground throughout: a place of both wound and belonging for the Native community it had first sought to remake and later sought to serve.

What killed the college was ordinary and slow. Enrollment never recovered the level it had reached in the 1970s, when state tuition grants briefly made Sheldon Jackson competitive with the public university; a court ruling that ended that subsidy and a long erosion of students left the college chronically short of operating revenue. By 2006 it was borrowing to survive — five short-term loans of $2.5 million, then a $4.7 million consolidation loan secured against subdivided waterfront land. Its insured value was about $35 million, but nearly all of it was locked in century-old buildings and ground, not cash, with an estimated $10 million in deferred maintenance waiting behind the walls. When the college asked the City and Borough of Sitka for a $1 million emergency loan that June, the assembly voted no. Three days later the school shut its doors.

The ending was abrupt, but the afterlife was unexpectedly kind. The campus sat boarded up for four years — full sheets of plywood over every window of Alaska's oldest college — until, in 2011, the trustees deeded the core campus to Alaska Arts Southeast, the nonprofit behind the Sitka Fine Arts Camp, whose volunteers and campers restored the buildings and gave the National Historic Landmark a second life as a place of learning. The degree-granting college was gone; the ground, remarkably, was not.

Timeline

1878
A mission school opens
Presbyterian missionary Sheldon Jackson and teacher Fannie Kellogg open a school for Alaska Native children in Sitka; it would become the Sitka Industrial and Training School.
1882
Fire and rescue
The building housing the school burns in January; Sheldon Jackson raises funds nationally to rebuild on the present Baranof Island campus, saving the fledgling institution.
1889
A working mission campus
The school operates two large dormitories, an industrial-arts building, blacksmith shop, laundry, bakery, hospital, and model cottages, with 186 pupils.
1910–1911
Rebuilt and renamed
A new campus is constructed and the school is renamed in honor of Sheldon Jackson, who died in 1909.
1917
A boarding high school
The institution adds a four-year boarding high school for Alaska Native and other students.
1944–1966
The junior college, then accreditation
Sheldon Jackson opens a two-year junior college, building on coursework first offered in 1942, and earns regional accreditation in 1966; the high school graduates its last class in 1967.
1971–1975
The high-water years
State tuition grants from 1971–72 make the college affordable against the public university; enrollment reaches roughly 300, about 205 of them full-time, by 1975.
1980s
Toward four years
With enrollment under pressure after the tuition grants are curtailed, the college works toward and attains four-year, baccalaureate status.
2006
Borrowing to breathe
The college takes five short-term loans totaling $2.5 million, then a $4.7 million consolidation loan from Alaska Growth Capital, secured against subdivided waterfront land.
June 26–29, 2007
The loan refused, the doors shut
Sitka's assembly votes down a $1 million emergency loan on June 26; on June 29 the college suspends operations and tells staff their jobs will end in thirty days.
Late 2007
Accreditation lost, lender sues
Sheldon Jackson loses accreditation by year's end and is sued by Alaska Growth Capital over its loan collateral; Sitka loses a roughly $6 million payroll and over 100 jobs.
Feb. 1, 2011
The campus comes home
The trustees transfer the core campus to Alaska Arts Southeast, the nonprofit parent of the Sitka Fine Arts Camp, which restores the buildings.

A Mission School on Native Ground

Sheldon Jackson's origin is inseparable from the larger nineteenth-century project of using schools to remake Indigenous people. The institution that became Alaska's oldest college began in 1878 as a Presbyterian mission school for Alaska Native children, and it grew under a logic shared with the federal Indian boarding schools of the era: Native parents who wished their children educated had to "indenture" them to the school for a term of years, during which the children learned English, trades, and Protestant American culture, and were steered away from their own languages and ways. For decades, because Alaska Native children were barred from Sitka's public schools, the mission was for many families the only path to formal schooling past the early grades — a coercion and a necessity bound together. By 1889 the campus held 186 pupils among its dormitories, workshops, and model cottages. This is the first weight the college carried, and it is the one to name plainly: a place built in part to erase the very heritage of the children it enrolled.

The institution outgrew that founding purpose without ever fully shedding it. Renamed for the missionary in 1910, it added a boarding high school in 1917 and, in 1944, a two-year junior college. By the late 1950s, roughly two-thirds to three-quarters of its students were Alaska Native, and the school had become, for the Native community of Southeast Alaska, something more complicated than a colonial instrument: a place where generations of one family attended in turn, where alumni networks ran deep, and where the loss in 2007 would be felt as the loss of an institution that belonged, however painfully, to them.

The Golden Decade That Could Not Hold

The college's brief peak arrived with public money. Beginning in the 1971–72 academic year, Alaska's state tuition grants let students attend Sheldon Jackson at a cost competitive with the public University of Alaska, and enrollment climbed to about 300, with roughly 205 full-time students by 1975. For a small private college on an island, this was prosperity: a four-year curriculum took shape, students came for environmental science, marine studies, education, and outdoor leadership, and the salmon hatchery on campus became both a teaching laboratory and a small revenue stream. A $700,000 gift from benefactor Jane Newhall in 1980 helped the college survive an earlier cash crisis, evidence that the institution had patrons willing to keep it alive.

But the prosperity rested on a subsidy the college did not control. When the legal basis for the tuition-grant program was struck down, the artificial parity that had filled Sheldon Jackson's classrooms vanished, and a small, remote, tuition-dependent college with no meaningful endowment was left to compete on price against a public system it could not match. Enrollment receded and never returned to its high-water mark. The structural problem was now permanent: too few students, too little cash, and a vast inventory of aging buildings — a National Historic Landmark campus — whose upkeep the shrinking student body could never fund.

The Week the Plywood Went Up

By 2006 Sheldon Jackson was running on borrowed time in the most literal sense, stacking short-term loans and then consolidating $4.7 million of debt against waterfront land it carved off for collateral. Its balance sheet showed an insured value near $35 million against roughly $6 million in debt, but the figure was a mirage: the value was locked in land and historic structures, not operating cash, and behind the picturesque facades sat an estimated $10 million in deferred maintenance. The college needed liquidity to make payroll, and in June 2007 it asked the City and Borough of Sitka for a $1 million emergency loan. On Tuesday, June 26, the assembly declined. By Friday, June 29, the administration had told employees their jobs would end in thirty days and suspended operations.

The closure stranded about a hundred full-time students and another two hundred part-timers — many of them Alaska Native, studying in their own region at the one college their families had long attended — and ended roughly a hundred jobs, stripping a payroll of some $6 million from a town of fewer than nine thousand people. The college pledged to help students transfer, but there was no funded teach-out year and no orderly landing; upper-level courses had dwindled to one or two students apiece. By the end of the year the college had lost its accreditation outright and was being sued by its own lender over errors in the loan's collateral description. The campus was locked and boarded — plywood over every window of Alaska's oldest college — and would stay that way for four years.

The Five Factors

01
Tuition dependence with no endowment cushion
Sheldon Jackson lived on the tuition of a few hundred students and had no significant endowment to absorb a bad year. A remote private college competing against a subsidized public university on price has almost no margin, and a single shortfall becomes existential rather than survivable.
02
A subsidy the college did not own
The 1970s boom was built on state tuition grants that made Sheldon Jackson competitive overnight. When the legal basis for those grants ended, the college lost the artificial demand that had filled its classrooms — a reminder that enrollment propped up by an external subsidy can collapse the moment the subsidy does, and that the institution controlled none of it.
03
Deferred maintenance as a slow death
A National Historic Landmark campus is an asset on paper and a liability in cash. With roughly $10 million in deferred maintenance accumulating behind the walls, every dollar of tuition was chasing upkeep the shrinking student body could never fund; the buildings that gave the college its grandeur were quietly bleeding it.
04
Borrowing against the future to survive the present
Stacking short-term loans and then consolidating millions in debt against subdivided land bought months, not solvency. When an institution is borrowing to make payroll and pledging its land as collateral, the closure has effectively already happened; only the date is unsettled.
05
Abrupt suspension instead of an orderly teach-out
A loan refused on Tuesday and the doors shut on Friday left students with no funded teach-out, no arranged transfers, and dwindling courses, and ended a hundred jobs at once. The same insolvency, managed with a year's notice, could have let the students finish; instead they absorbed the failure of the institution that had failed them.

Aftermath

The students scattered, helped by little more than the college's pledge to assist with transfers; for those studying marine science, outdoor leadership, or education in their home region, there was no equivalent program next door. About a hundred employees lost their jobs, and Sitka lost a roughly $6 million payroll and a fixture of its civic life. The college's lender, Alaska Growth Capital, sued over the loan it had made, and the institution that had stood since 1878 dissolved into litigation and a boarded campus.

The campus itself found the rescue the college never did. After four years of plywood and uncertainty, the trustees in 2011 deeded the historic core to Alaska Arts Southeast, the nonprofit behind the Sitka Fine Arts Camp, whose campers, volunteers, and staff restored the buildings room by room and brought a National Historic Landmark back into use as a place of teaching and music. The Sheldon Jackson Museum, the Sitka Sound Science Center, the Sitka Summer Music Festival, and later Outer Coast College took up residence in the buildings. The degree was gone, but the ground — for the Native community whose history is woven through it and for the town that nearly lost it to ruin — was saved.

Lessons

  1. Read a historic campus as a cost, not only a treasure: a landmark with millions in deferred maintenance can quietly consume the very tuition meant to keep an institution alive.
  2. Never build enrollment on a subsidy the institution does not control; when the grant program ends or the rule changes, the demand it created can vanish in a single admissions cycle.
  3. For a remote, tuition-dependent college with no endowment, diversify revenue and reserves before the crisis, because there is no cushion to discover when payroll comes due.
  4. Treat repeated short-term borrowing against land as the alarm it is: an institution pledging its acreage to make payroll has already begun to close.
  5. Wind down with a funded teach-out and arranged transfers; an abrupt suspension multiplies the harm across students who may have no comparable program within a thousand miles.

References