Kean, New Jersey City University sign letter of intent; monitor reports debt reduction but long-term liabilities remain

The Senate Higher Education Committee heard updates on May 21 about the proposed merger between Kean University and New Jersey City University (NJCU), including progress on debt reduction and next steps for regulatory review and integration.

Henry Amoroso, the fiscal monitor for New Jersey City University, told the committee the monitor’s April report recommended NJCU find a “suitable partner” to preserve the institution’s mission and that the university “has met all or is in the process of meeting all of the benchmarks set in the monitor’s report, including and most notably, its movement towards significant debt reduction.” He said the university expects to reduce more than $30,000,000 in debt by the end of the summer through lease exits, property sales and defeasance of bond debt.

Kean University President Lamont Repollet said Kean and NJCU signed a letter of intent on May 15 that…