As the aftermath of the recession and unfavorable demographic shifts combine to threaten traditional higher education business models, colleges and universities are increasingly pursuing bigger and bolder strategic investments to ensure future growth and success. While the scope and size of these investments differ by institution, all will require significant capital. Unfortunately, higher education has historically struggled to adequately fund important strategic investments, especially compared to other industries.
Central fungible dollars harder to come by
The first, and likely most damaging, factor affecting investment in strategic priorities is decelerating tuition growth. While most colleges and universities funded strategic priorities primarily through enrollment growth across the 1990’s and early 2000’s, this is no longer a viable option as tuition growth slows or even declines at most institutions.
Representative Institution's Tuition Growth Over Time