[ The Atlanta Journal-Constitution: 12/8/02 ] Life U future on line Tuesday By MARY MacDONALD Atlanta Journal-Constitution Staff Writer Good news is unusual lately at Life University, but that's what its leaders expect when a regional accrediting agency takes a renewed look this week at its management, finances and academic programs. For the beleaguered university, probation would be good news. On Tuesday, the Southern Association of Colleges and Schools is expected to decide whether to continue the accreditation of all degree programs at the Marietta university, once the nation's largest chiropractic school. A year ago, the agency issued a public warning against the university, a sanction one step short of probation, after criticizing its financial stability, management and faculty preparation. Since then, another accrediting agency has revoked the good standing of its chiropractic program, enrollment has dropped by half, the budget was cut by one-quarter, and founder Sid Williams was forced to retire. Accreditation vital Nearly 200 current and former students have sued the university, court records show. That includes 125 who are asking a Fulton County judge to allow their lawsuit to represent all students. New Life President Ben DeSpain and an administrative team are trying to convince the accrediting agency that the university can restore financial stability, which is the overarching concern. Continued accreditation is vital to the survival of Life, which pumps $100 million into the Cobb County economy annually. Without regional accreditation, students cannot qualify for federally subsidized student loans. Eighty percent of Life's 1,340 students use federal aid to cover tuition, which is $58,000 for the 3 1/2-year chiropractic program, a spokesman said. The regional organization could skip over probation and strip the school of its accreditation. But DeSpain, who has spoken with agency officials, said that's unlikely. "There is always that possibility. But it is a most unprecedented step." Issue is fiscal viability DeSpain expects continued accreditation, albeit through probation. "The basic issue now is fiscal viability," he said. In addition to cash assets of $13 million, the university has a 125-acre campus in a commercial area of Marietta that is appraised at $52 million and other properties appraised at $14 million, according to a September review by the accrediting agency. Debts include a $32 million bond issue for campus improvements that has fallen into "technical default," DeSpain said, because the university's debt-to- income ratio was upset by declining tuition revenue. Life recently put $3 million in escrow to cover 14 months of bond payments, DeSpain said. The university can survive despite the loss of students, he said, although it will require more drastic cuts. The interim president, Michael Schmidt, chopped $10 million from the school's $38 million budget, including the elimination of the nationally acclaimed sports program. DeSpain said he will show the accrediting agency a plan for deeper cuts, depending on how low the chiropractic enrollment falls. Records show chiropractic enrollment has dropped to 688, from 2,600 in June, when the program's accreditation was revoked by the Council on Chiropractic Education. Life has 652 students in master's and bachelor's degree programs, which require accreditation by the Southern Association of Colleges and Schools. The public sanction that organization issued a year ago followed a yearlong review. Eighteen months ago, the university was told to correct 51 deficiencies. By last December, fewer than half remained. The most recent report, by an accreditation committee that visited the campus in September, cited 10 problems. Issues remain The report acknowledged the tumultuous changes at Life but said the university still needs to: ” Demonstrate its financial resources are adequate and appropriate to fulfilling its academic mission. ” Define the board of trustees' responsibilities, including "proper procedures to ensure that it is adequately informed about the financial condition and the stability of the institution." ” Identify and collect assessment data to improve academic programs, which the committee said remain "woefully absent." ” Have a focused evaluation system for the chiropractic program. Despite the remaining concerns, students and alumni say they feel confident the university can make its case. Gregory Lumpkin, a chiropractic student with two years to go, said enough students will remain to make the university viable. "Most students who I see panicking are people who haven't been out in the job market," said Lumpkin, 38, a radiology technologist. " Tim Langley, a Vinings chiropractor, leads a group of alumni who have challenged the chiropractic council's decision to remove the program accreditation. The regional agency, the Southern Association of Colleges and Schools has a more reasonable approach, he said. "If SACS were to completely revoke the school's accreditation, it would be impossible to survive," he said. "They understand the mission of an accrediting agency is to help a school comply."