HIGHER EDUCATION BUBBLE UPDATE, LEGAL EDUCATION EDITION: Brooklyn Law School Parts Ways With Dean.

Allard’s abrupt departure is unusual in legal education, where law deans typically announce their intention to step down months or even a year in advance. Even when law school leaders clash with university officials or faculty, they are typically allowed to plan graceful exits out of the dean’s office. …

Allard’s deanship coincided with the national downturn in law school applications, and the school struggled with financial issues during that time. It has sold a number of its residential properties in the highly sought-after Brooklyn Heights neighborhood, and in 2016 sold off an office building across the street from its downtown Brooklyn campus for $76.5 million.

But those sales don’t appear to have been enough to keep the school in a strong financial position.

Last month, Moody’s Investors Service lowered the law school’s outlook from stable to negative, citing, “ongoing tuition pricing challenges and operating deficits that are deeper than previously projected and will continue for a period longer than anticipated, leading to a likely deterioration of spendable cash and investments.” But Moody’s also noted that the school’s unrestricted reserves give it time to “move to operating equilibrium.” Moody’s reported that the school generates $43 million annually.

More at the link.