Daily Progress, Jacksonville, TX


May 23, 2012

LMC employees receive furlough notice



McCall made a decision to resign after a meeting with Ragan, McRae said.

“Miles McCall wanted to fit into the reorganization effort but he knew a lot of the discussions and decisions were made outside of him and he was not involved,” McRae said. “He asked (Ragan) if he had a part in this and where does he play. (Ragan) asked (him), 'Do you want me to be blunt? You express that your main concern of the college is the reorganization effort, I think it is in the best interest of the college if you step down to help progress the reorganization effort.”

McRae said McCall was told, “the sooner you resign the better.”

“His concern the whole time was with the college,” McRae said. “He wanted to do whatever it took to keep the college viable. He doesn't necessarily agree with the reorganization process but he respects it.”

McCall's phone number was not listed and he could not be reached for comment.

McRae said what happens next with the college is up to the reorganization firm.

“The firm is going to do what's best,” he said, “They will work with banks and creditors, with all means, to raise some funds and that will be funds to underwrite their restructuring efforts. They need some time to put a business plan together to keep moving forward. Once that's in place and they begin implementing that plan, hopefully we'll open in the fall.”

McRae said as of right now, there will be no summer classroom instruction courses, but online courses are a possibility.

Multiple phone calls were made to Martha Squibb, board president, on Wednesday, but none were returned by press time.

Lon Morris College had been experiencing ongoing cash flow problems after the school increased its enrollment to an all-time high of 1,080 after bringing in new academic programs such as hospitality, management and agriculture science.

In 2010, LMC added football its list of sports offered and at its peak, there were 180 men in the program.

Reports of delayed payrolls begin in April 2011.

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