Vermont Colleges Eye Merger

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Two Vermont public colleges are exploring a merger.

The Vermont State College Board of Trustees approved a concept Thursday proposed by Chancellor Jeb Spaulding that would unify Johnson State College and Lyndon State College under one administration. The Board asked Spaulding to prepare a report on how the unification would be implemented in anticipation of a vote at its Sept. 29 meeting. If approved, the unification would take effect on July 1, 2017 with Johnson State College President Elaine Collins leading the combined college.

"A unification would protect the long term viability and vitality of both campuses," said Spaulding in a statement.

Johnson State College in Johnston said it enrolled 1,538 students as of October 2015. Lyndon State College in Lyndonville says it enrolls about 1,300 students. The schools are 42 miles apart.

The board noted in the resolution that creating one larger college with two distinct campuses would position it well to confront challenges facing smaller higher education institutions. Six colleges were shut down in 2014 and Moody's Investors Service forecasted in a September 2015 report that there could be as many as 15 higher education closings by 2017. Dowling College in Oakdale, N.Y. announced plans to close in late May following 48 years after incurring more than $50 billion in debt. Vermont's Burlington College closed in late May due largely to debt from a $10 million property purchase spearheaded by the school's former president Jane Sanders.

"I applaud the Board of Trustees and the Chancellor for proposing this proactive step on behalf of Lyndon and Johnson and the Vermont communities and students they serve," said Vermont Gov. Peter Shumlin in a statement.

VSC is a state-supported institution established in 1961 that consists of Johnson State College, Lyndon State College, Castleton State College, Vermont Technical College and the Community College of Vermont. S&P assigned an A-plus long-term rating with a stable outlook for VSC 2010A and 2010B revenue bonds, but cited debt burden concerns and a balloon" payment owed in 2028 along with a "limited fundraising history."

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