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

June 12, 2025 | 2025 Legislative Sessions, New Jersey


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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 outlines shared goals and structure for an entity the schools are calling “Kean Jersey City.” Repollet said Kean is preparing a shared‑services agreement intended to allow Kean to begin supporting day‑to‑day operations in Jersey City; he told the committee the goal is to finalize that agreement around July 1 to coincide with the new fiscal year. “We’re entering this merger process with NJC with enthusiasm and optimism,” Repollet said.

Committee members and witnesses said multiple regulatory approvals will be required. Amoroso and Repollet described a multi‑step timeline: a definitive agreement targeted for the fall, a planned submission to the Middle States Commission on Higher Education in mid‑2026 for change‑of‑control review, and an expectation that full consolidation of legal, contractual and program matters could take a year or more after Middle States and U.S. Department of Education approvals. Amoroso said the monitor and university are aiming to be on Middle States’ calendar around June 2026 but cautioned capacity and competing merger reviews could affect scheduling.

Amoroso said the state monitor role included hiring an external consultant, issuing benchmarks, and approving hires; he described cooperative work with NJCU leadership and said the university had trimmed its workforce and operated a “very thin operation” while meeting monitor conditions. He also noted remaining long‑term liabilities: without legislative intervention, he estimated roughly $118,000,000 in EFA (Educational Facilities Authority) debt would remain on NJCU’s books and that other long‑term capital and lease liabilities exist. Amoroso suggested the state consider incentive mechanisms to encourage affiliations, shared services or mergers among public institutions because of the costs and transition burdens involved.

Kean and NJCU officials said they are working with labor leadership and expect to address back‑office systems alignment, enrollment management, and student success services during the shared‑services and transition phases. Repollet said Kean plans a summer assessment of systems and operations and aims to implement retention and advising practices that Kean uses to improve student persistence.

What the committee did not decide at the hearing were statutory changes. Committee members were told draft legislation (identified during the hearing as “s 45 97”) is circulating for comment; Amoroso asked for feedback to inform that draft.

The hearing underscored both the fiscal pressures driving merger discussions and the complex, multiyear regulatory, contractual and programmatic work required to complete an affiliation or consolidation of public universities in New Jersey.

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