North Carolina
North Carolina HBCU faces battle with IRS, risks being shut down
Saint Augustine’s University in Raleigh, North Carolina, is in an ongoing battle with the IRS and the Southern Association of Colleges and Schools Board of Trustees after the historically Black school’s previous finance department “mismanaged” a $34 million budget, according to university officials.
Historically Black Colleges and Universities (HBCUs), both public and private, have been underfunded due to lower endowments, less alumni support and state and federal underinvestment.
Recently, HBCUs have faced several challenges. During a funding crisis, Tennessee State University had its board stripped away in a complete overhaul by state lawmakers. In Mississippi, lawmakers proposed a bill that would have shut down the state’s only public HBCUs.
Now teachers and staff at Saint Augustine’s have not received a salary for three months following the institution’s plunge into debt of $32 million. The dire financial situation places the university at a high risk of losing its accreditation, a crucial aspect of its credibility and reputation.
“We’re still unpacking, but the biggest piece starts with our missing audits from 2021, 2022 and 2023,” Saint Augustine’s Interim President Marcus H. Burgess told ABC News in an interview in March. “A $34 million budget. There was only $130,000 that can be accounted for. So a new finance team was brought in, and they “literally had to recreate all of those financials. And it took them about two years to do that.”
Saint Augustine’s University accreditation appeal was denied.
ABC News
Christine Johnson McPhail, the previous president of Saint Augustine’s University (SAU), was terminated on Dec. 3, 2023, when the Southern Association of Colleges and Schools Board of Trustees voted unanimously to remove Saint Augustine’s status as an accredited institution. On Feb. 20, the school had an appeal hearing with the Board of Trustees. The committee that heard that appeal rendered the decision to fire McPhail.
ABC News contacted McPhail’s attorney, who declined to speak on the financial issues at SAU.
Dr. Christine Johnson McPhail is the 13th President of Saint Augustine’s University in Raleigh, N.C., March 18, 2022.
Mauricio Richardson
“We are not at liberty to discuss the financial situation at Saint Augustine’s University. It is our position that Saint Augustine’s termination of Dr. McPhail’s employment was unrelated to the school’s financial situation.”
According to the Southern Association of Colleges and Schools Commission on Colleges (SACS), the university’s accreditation is currently on hold due to financial and governance issues. The institution has been put on probation and, in response, the university sent a letter of arbitration to SACS on Mar. 11. The school will retain its accreditation until the arbitration process is complete, according to a statement on its website.
“It gave us 90 days. So, within that 90 days, we still accredit it,” Burgess said. “It allows our seniors to graduate from an accredited institution.”
If SAU loses its accreditation, 85 percent of its students will lose their financial aid.
“Transferring is just not something I would have ever thought,” SAU student Tinaya Eason said. “And I’m still thinking about it. Nothing is really finalized right now.”
SAU needs to raise nearly $32 million to pay its debts and remain operational.
The university received a tax lien of nearly $7.8 million from the IRS for unpaid payroll taxes dating back to 2020, putting the university’s financial stability at risk.
Due to the school debt, Burgess and his staff have been working without compensation since February.
“Staff have not been paid, but they still fight for this institution,” Burgess said. “They still teach our students. They want to see this class get to the graduation day, but they are hurting.”
Despite an outpouring of support from alumni and community donations, the amount raised is hardly enough to solve the problem.
“We need capital, and need cash,” Burgess said. “I don’t want to have to sell any of our land. In the Black community and African American community, we know how hard it’s been to get this land.”
“I’m forever reminded of my senior year; $1,200 is what I needed to graduate,” Burgess said. “One of our board members, Barrett Jackson, was on campus and handed me an envelope, and it was several checks from his Sunday school class. And he told them about this young man at Claflin University who just needed a chance. I’m a living testimony to why you should always look to help somebody. We need that chance.”
North Carolina
NC Made: Durham’s Old Hillside Bourbon toasts Black heritage one bottle at a time
DURHAM, N.C. (WTVD) — Bourbon is more than a business for Jesse Carpenter — it’s a tribute to the city that shaped him.
“This is Durham. This is where I’m from. This is where I grew up,” said Carpenter, Chief Product Officer of Old Hillside Bourbon.
The company he co-founded with childhood friends takes its name and identity from one of Durham’s most iconic institutions-Hillside High School, one of the oldest historically Black high schools in the nation.
“We graduated Class of 1993 from Hillside High School,” Carpenter said. “Concord and Lawson Street. It’s the old Hillside.”
The idea took root during the pandemic when Carpenter proposed starting a bourbon company to those same friends.
“I had an idea to start a bourbon company, and they were on board,” he said. “Friends from 30 years ago, and now we’re doing this business together. It’s awesome.”
From 300 Cases to 10,000
What began as a pandemic-era idea has evolved into a rapidly growing business.
In its inaugural year, Old Hillside distributed 300 cases; this year, the company anticipates 10,000. The bourbon also earned Best in Show at the 2023 TAG Global Spirits Awards, impressing even the most discerning craft bourbon critics.
“Let me focus on the aroma — layers of oak, vanilla,” one reviewer commented on the Bourbon Banter YouTube channel, concluding with, “I think it’s a great taste.”
SEE MORE NC MADE STORIES
A Bottle Full of Stories
Beyond its flavor, Old Hillside stands out for the history embedded in its label. Each vintage pays homage to a chapter of Black American history that might otherwise remain overlooked.
The inaugural bottle features a photo of the old Hillside High building, symbolizing the school’s deep community ties. A second flavor pays tribute to the African American jockeys who dominated the Kentucky Derby before the Jim Crow era effectively pushed them out of the sport. The company’s latest release honors the Harlem Hellfighters, the renowned all-Black military unit that served with distinction in World War I.
It’s a storytelling approach that Carpenter and his team are actively working to spread across North Carolina. Brand ambassadors Corey Carpenter and Amire Schealey are on the front lines of that effort.
“More bars and restaurants — tackling different markets,” said Corey Carpenter. Schealey added that the team is “setting up tastings at different ABC boards to build up our brand and presence around the state of North Carolina.”
Like many acclaimed bourbons, Old Hillside is distilled and bottled in Kentucky. But its founders are quick to point out where its true spirit comes from.
“Old Hillside is a lifestyle,” Jesse Carpenter said. “Not just a school-friendship and camaraderie. That’s what we do.”
SEE ALSO | NC Made: Raleigh jewelry brand AnnaBanana grows from UNC dorm room to statewide success
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North Carolina
State and local leaders discuss ‘child-care crisis’ in NC
DURHAM, N.C. (WTVD) — State and local leaders gathered in Durham on Thursday to discuss how they say North Carolina’s ‘child-care crisis’ is taking a toll on our communities.
“We’re demanding recognition,” former childcare provider DeeDee Fields said. “We want fair compensation. We want health protections and a retirement pathway for the workforce that makes all the work possible.”
Childcare is one of the biggest expenses North Carolinians face, with infant care more costly than in-state college tuition per year, according to data. Childcare for a four-year-old costs nearly $8,000 a year.
Since 2020, North Carolina has seen a record loss of licensed childcare programs. Durham County, for example, experienced a 14% drop.
“I think a lot of people are making these tough choices about what makes the most sense for their family,” Nylah Jimerson said.
Jimerson used to work as a nanny before she became a parent. She’s one of more than a quarter of parents in North Carolina who left the workforce to stay home to care for children.
As North Carolina is the only state without a new budget, childcare is top of mind for State Sen. Sophia Chitlik, who co-authored a package of bills that aims to better support the industry, including making childcare more affordable.
“The ‘Child Care Omnibus’ is part of a series of bills that have budget requirements and budget asks in them,” Chitlik said. “But we’re not going to know until we get a state budget. The most urgent and important thing, in addition to those subsidies, is raising the subsidy floor … so I hope that there is bipartisan consensus that would be worked out in a state budget.”
North Carolina could remain without a budget until the legislature is back in session in April.
“We have got to do something about childcare,” Sen. Natalie Murdock said. “We shouldn’t be in this position … we have to have a sustainable model and program because it’s about our children.”
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Copyright © 2026 WTVD-TV. All Rights Reserved.
North Carolina
Lawmakers discuss solutions to solving a 'child care crisis' in NC
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