Understanding the fiscal resiliency landscape in higher education

This blog summarizes key takeaways from our fiscal resiliency podcast series, episode one.

While COVID-19 has created a challenging time for colleges and universities, the current landscape also positions institutions to evolve and potentially improve their fiscal resiliency.

Resiliency is not just a matter of financial health. It’s a mindset by which higher education stakeholders can position their institution to continue to fulfill its mission while supporting long-term student and institutional success, including fiscal sustainability.

Institutions in distress

A recent study by The Hechinger Report showed that more than 500 colleges and universities were already showing signs of financial distress prior to COVID-19. These institutions, like many organizations across the country, face serious challenges with no easy answers regarding how to remain viable.

COVID-19 has resulted in complex circumstances for colleges and universities, although fiscal pressures and uncertainty have existed for many institutions for years. Factors such as affordability concerns, decreasing enrollment, increasing operating costs and the ever-expanding nature of higher education service expectations are not breaking news to colleges and universities. However, these pressures, collectively, combined with the uncharted environment created by the global health crisis, mean that now is the time for thinking differently about the “what” and “how” to achieve the institutional mission.

Positioning an institution to survive the current pandemic requires an intentional approach in order to avoid drastic consequences.

Conversations, challenges and concerns

The conversations among college and university leaders are more difficult these days. In many cases, after years of status quo decision making, leaders are considering key questions such as:

• What are we known for?