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Corcoran Gallery’s proposed merger goes to court

By WTOP Staff

BRETT ZONGKER
Associated Press

WASHINGTON (AP) — Court proceedings opened Friday in the planned merger of the Corcoran Gallery of Art, one of the nation’s oldest museums, with two larger institutions after years of financial troubles and daunting renovation needs.

District of Columbia Superior Court Judge Robert Okun heard arguments from the group Save the Corcoran, which represents some students, alumni, donors and faculty, who are seeking to intervene and stop the museum and art school’s merger with George Washington University and the National Gallery of Art. Okun questioned the group and lawyers for the Corcoran. The judge said he would consider the case over the weekend before issuing a ruling Monday.

Okun indicated he could be ready to hear further proceedings in the case as soon as next week on an expedited schedule. Lawyers for the Corcoran have said delaying the planned merger could force the museum to begin using the sales of artworks to pay for its operations.

Under a merger plan finalized in May, the Corcoran building would continue operating as a museum, though with less than half its current gallery space. Most of the building would be devoted to the art school, which would become part of George Washington University, and the university would assume responsibility for a major $70 million renovation of the Corcoran’s historic Beaux-Arts building. At least $35 million in Corcoran money would help fund part of the renovation cost.

The National Gallery of Art would acquire the bulk of the Corcoran’s 17,000 artworks and would run the exhibit programs and museum operations. Some artworks would be distributed to other museums with a preference for those in Washington.

The District of Columbia has filed court documents in support of allowing the merger to go forward after reviewing the Corcoran’s financial information and noting its pattern of funding shortfalls.

In court documents, Corcoran lawyers argued that opponents of the merger deal have no standing to intervene and that delaying the merger into the Corcoran college’s next academic year would deplete the museum’s operating funds.

“Indeed, to operate the college for the upcoming academic term would require that the board violate the standards imposed by the relevant museum associations by requiring the use of proceeds from the sale of art to be used for operating expenses,” attorney Charles Patrizia wrote. He added that such a move would destroy “the Corcoran’s reputation as a museum.”

Save the Corcoran has accused the Corcoran’s trustees of financial mismanagement. They asked the judge to provide access to 10 years of audited financial records and suggested the current board of trustees should be removed. The group also is seeking a requirement that the entire art collection be kept together.

In a court filing, attorney Andrew Tulumello dismissed the Corcoran’s warnings that it could lose its museum accreditation if it sells artworks to continue operating as an independent museum.

“While it is obviously not desirable to fall out of the good graces of the (American Alliance of Museums), when the very life of an institution is at stake, the issue must be considered,” Tulumello wrote, adding that museum founder William W. Corcoran would not have elevated museum association membership over “the utter destruction of the institution he created and nurtured.”

Despite the opposition, D.C. Attorney General Irvin Nathan is supporting the merger. The attorney general represents the public interest when a court considers major changes to a charity’s structure. Nathan also addressed arguments opposing to the Corcoran’s merger.

“Save the Corcoran’s proposal is a short-term fix that will not alleviate the longer term problems that the Corcoran faces,” the attorney general wrote.

Lawyers for the D.C. government concluded the museum’s financial situation prevents it from continuing to operate independently. In supporting the merger, the government seeks to require that no art may be distributed outside of D.C. without approval from the District or the court.

The Corcoran was founded in 1869.

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Follow Brett Zongker on Twitter at https://twitter.com/DCArtBeat .

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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