🔒Three years after joining forces, Goodwin University, Univ. of Bridgeport eye campus upgrades, program expansions with $47M in bond funds

Following completion of Goodwin University’s 2021 purchase of the financially struggling University of Bridgeport, Goodwin President Mark Scheinberg predicted the combined organizations would be profitable by year two.

He was a bit off. In fact, the not-for-profit colleges posted a combined operating surplus in each of the last two full years since the deal was completed, including a $17.8 million operating profit in 2023, up nearly 30% from a year earlier, according to audited financial statements.

The University of Bridgeport has also reversed a steady decline in enrollment.

Those are a few signs the $32 million deal, which some characterized as risky when it was completed in May 2021, has paid off, Scheinberg said in a recent interview.

With both institutions on more stable financial ground, the colleges in July tapped the bond market for a combined $47.1 million.

Some proceeds are being used to refinance debt Goodwin took on to complete its UB acquisition. KeyBank and Liberty Bank helped finance the purchase, while the state Department of Economic and Community Development provided a $7.5 million low-interest loan, which remains active and current, according to DECD.

Goodwin will also invest $10 million in new programs and infrastructure upgrades at both campuses, with a focus on addressing the state’s key workforce shortages in manufacturing and nursing.

Eddie Meyer, Goodwin’s vice president for finance and chief financial officer, said the decision to move forward with the bond offerings this summer was driven by the lower interest rate environment, and the opportunity to grow program offerings.

“We determined it was a great time to not only just save money across the board on our interest rate exposure,” but also start tackling some projects with the bond funding, Meyer said.

Social pact

The bonds were issued by the Connecticut Health and Educational Facilities Authority — a quasi-public state agency that provides access to tax-free financing for nonprofit colleges, hospitals and other organizations — on behalf of Goodwin and UB. They were designated as so-called “social bonds,” which are issued to organizations that promise to achieve positive social outcomes and/or address a social issue.

Both schools have historically served underrepresented and relatively low-income student populations, and the new programs are focused on job training in in-demand careers.

In Bridgeport, funding will be used to make improvements to School of Engineering labs, adding capabilities related to artificial intelligence, robotics, automation, green technology, biomedical engineering and 3D printing. There will also be renovations to an existing 8,000-square-foot building on campus that will be converted into a new welcome and admissions center. Upgrades will be made to sports science and nursing program spaces, parking areas and athletic fields.

Goodwin’s campus will add a simulation lab for its nursing program. Capital improvement and deferred maintenance projects like roofing and HVAC upgrades will be tackled on both campuses.

Next spring, UB will also debut its first associate nursing degree program. Goodwin’s nursing school, which has graduated more than 4,000 students in the last 20 years, recently added a licensed practical nursing program to its offerings, Scheinberg said.

Program growth

Scheinberg said the UB deal was unique because a smaller institution (Goodwin), which traditionally issued certificates and associate degrees, acquired a larger four-year college that offers bachelor’s, master’s and doctoral degrees.

Goodwin, which converted from a college to a university in 2020, offers degrees and certificates in fields ranging from nursing and computer technology to health sciences, education and manufacturing.

UB, which continues to operate as an independent institution with its own board of trustees, has been known for its programs in engineering, education and business.

Moving forward, the colleges’ combined resources will allow for more degree and training offerings at both campuses, said University of Bridgeport President Danielle Wilken.

Even before the new bond funding, the colleges made post-merger changes to their offerings, making a larger push into manufacturing.

UB now hosts Goodwin programs through its Steans Advanced Manufacturing Center, which opened in 2023 and offers a welding program, with an eye toward helping General Dynamics Electric Boat fill the thousands of new jobs the company is creating as it ramps up submarine production, Scheinberg said.

There’s also a new manufacturing engineering technology program, and UB will be opening its manufacturing programs at master’s and doctoral levels in East Hartford, which is home to jet-engine maker Pratt & Whitney, university officials said.

Goodwin and UB in October are launching a second mobile manufacturing laboratory that can be set up at businesses to train workers on-site.

“We’re designing programs that can go right to the businesses, set up in the parking lot and train workers in a specific skill,” Scheinberg said.

Goodwin is also building a new technical high school on its East Hartford campus that will break ground this fall. It will be designed to give students training in emerging technologies and professions.

Goodwin and UB officials, Scheinberg said, have been contacted by other schools and accreditation agencies that want to learn about the acquisition strategy, since it was unique in higher education.

“They’re looking at us to see what’s working, but also the pitfalls, and we’re making a road map,” he said. “No one knows how to do this, and it’s often not clear what the strategies are when taking over entities. Do you buy the assets, take control of the board? These are questions that private corporations deal with all the time, but it’s rare in higher education.”

Enrollment trends

The acquisition has also allowed UB to expand its sports programs. It has added men’s and women’s track and diving, men’s lacrosse and wrestling.

Offering new academic and athletic programs is a key part of the strategy to growing enrollment, Wilken said, particularly undergraduate and international students.

UB’s enrollment grew nearly 21% from 2021 to 2023 to 3,486 undergraduate, graduate and professional students.

Conversely, Goodwin’s enrollment declined 8.2% between 2021 and 2023, which Scheinberg attributed to a robust jobs market that offers more opportunities for working adults, who make up about 90% of Goodwin’s student population.

Goodwin’s enrollment tends to increase during economic downturns, Scheinberg said, because that’s when people look for new skills. The inflationary environment and changes to the Free Application for Federal Student Aid application process also impacted enrollment, he added.

But overall, officials from both schools said they are happy with how the deal has turned out so far.

“Higher education is really moving in the direction of ‘how do you create these synergies,’” Wilken said. “We are able to leverage each other’s strengths and brand and niches in the market, but also retain our identities.”