College and university leaders are preparing for a range of scenarios that could impact their campuses this fall, which are likely to be exacerbated by the Trump administration’s extensive plans to overhaul the sector.
This is part two of University Business’s coverage of how stakeholders are using this summer for strategic planning. Click here for part one.
Cut out the noise when strategic planning
The two biggest threats to operations at the University of New England next academic year are funding cuts to financial aid and university research. While other institutions may have other concerns, President James Herbert is keying into these issues.
“I think it’s important that presidents have a clear sense of the lay of the land, but in particular also exercise a filter of the things that are most impactful, most important to your given institution.”
While research grants at the University of New England haven’t been cut so far, what worries Herbert most is future funding levels. The National Institutes of Health decreased the rate at which it reimburses institutions for their indirect research costs to just 15%.
To help the University of New England get over a potential dip in financial aid, Herbert is weighing options with the board to reallocate strategic investments away from capital projects or new programs.
Bolster fundraising initiatives
Another way the University of New England is trying to expand funding is by bolstering fundraising and philanthropy efforts.
However, seeking philanthropic support from individuals might be tough during the current economic landscape, says Kara Freeman, president and CEO of the National Association of College and University Business Officers, or NACUBO. As a result, she noted that many large research universities are finding ways to court interest from philanthropic foundations.
Commit to remaining flexible
Swarthmore College recently announced that it was postponing approval of its operating budget until the fall in light of recent political headwinds. An interim budget, university leadership believes, will prevent an overcorrection.
“That’s a pretty clever thing to think about since they’re private and have more degrees of latitude and rely less on federal funding,” Freeman says.
Swarthmore has already lost two federal grants and is awaiting final decisions on student visa revocations and reductions to research funding.
“Deferring the decision allows the board to consider the pay increases that senior staff and I hope to be able to achieve with a more complete understanding of the college’s financial environment,” Swarthmore President Val Smith wrote in a statement.
