Budget Guide: Higher Ed Student Services

Colleges and universities are facing more financial decision-making pressure than ever before. The Center on Budget and Policy Priorities calculated that state funding for higher ed since 2008 is down 16% — and that was prior to the global pandemic. McKinsey & Company estimates that, even if COVID-19 infection rates slow down this academic year, 25% of public institutions and almost half of private institutions will experience budget shortfalls of at least 5%. If ever there was a time to look at budget allocation for student services, it’s now.

Emergency funding for higher education

To help colleges and universities address the unexpected fiscal challenges brought on by COVID-19, the Consolidated Appropriations Act was signed into law on December 27, 2020. The act provides $22.7 billion in emergency assistance from the federal government for higher ed institutions and students, including $20.2 billion for public and private nonprofit institutions. (Read more from the U.S. Department of Education about the allocation of funds.) These funds are able to address short-term needs. However, colleges and universities — especially public institutions — continue to face long-term concerns, including tuition affordability and discounting pressures, reduced state funding, enrollment declines, and international student enrollment declines.

(Update, March 12, 2021: The federal government has passed a new $1.9 trillion stimulus bill for COVID-19 relief, with approximately $35 billion in help for colleges and universities. As reported by The Wall Street Journal, this new bill includes provisions for financial aid and students loan forgiveness. Click here to learn more about how these funds can benefit your campus.)

At the same time, generational shifts in student behaviors and changes brought about by the global pandemic have increased the need for implementing more holistic, integrated student services. The rise in mental health problems in the U.S. already had student development professionals worried about the need for additional support for struggling college students, as well as how schools provide that support. Now COVID-19 risk mitigation measures, such as online learning and physical isolation, put students at an even greater risk of facing negative mental health impacts.

Ideas for stretching your student services budget

Without question, student services and support systems contribute to the quality of students’ college experience and their academic success. Without operative support, there is a range of potentially serious and lasting consequences, including increased dropout rates, lower graduation rates, higher rates of substance abuse, and lower lifetime earning potential. But how can colleges and universities afford student support services with diminished resources?

Here are a few ideas for stretching your student services budget:

1. Use grants to request and source funds.

There are thousands of federal agencies, private foundations, corporations, and associations in the U.S. that provide grants for instructional projects, research, technology, and innovation. Once you have an idea for a grant proposal to fund your program, match your objectives to those of a funding organization. Understanding the funder’s goals and requirements will help you not only plan the proposal but ensure that it includes all of the information needed for review and serious consideration. Remember, it doesn’t hurt to ask.

2. Analyze the budget, and get efficient.

The Chronicle of Higher Education reports that HelioCampus conducted a research study of potential administrative efficiencies at its member universities. Nine administrative activities and 54 sub-activities were analyzed by comparing the number of employees and labor spent for a university compared to the benchmark average. That analysis generated a total savings opportunity of more than $1 billion for 32 members of the consortium, with an average amount per institution of $29 million. The top three areas for efficiency gains were information technology, general administration and finance.

Start by determining areas that could have a more cost-effective approach. Drill down into sub-activities to understand areas that may be overstaffed or not meeting expectations. Also, identify specific initiatives to generate potential savings. COVID-19 affords an opportunity to make budgeting changes that have historically been resisted by strong campus cultures or inertia. And keep in mind — generating efficiencies is not the end game but rather the re-investment in more strategic areas of prioritization.

3. Engage local and national crisis centers.

The mental health epidemic in higher ed is not slowing down. In fact, Inside Higher Ed recently reported on a survey from December 2020 finding that 79% of students said they were concerned about their mental health during the pandemic — an 8% increase since August.

Fortunately, organizations are ready to care for students during this time. Crisis centers provide mental health services and emotional support for their state or local communities and have crucial roles to play at a time of prolonged social isolation and stress. Most crisis centers are nonprofit, and many utilize trained volunteers as well as mental health professionals. Establishing partnerships at the campus level and providing financial support to these organizations ensures an ongoing resource for students at times of greatest need.