From CBOs: The Financial Outlook for Higher Ed Report

Higher education is at a crossroads. Colleges and universities are navigating rising costs, uncertain enrollment, and shifting federal policy — all while trying to invest in the future. To understand how institutional leaders are thinking through these pressures, we compiled insights from chief business officers (CBOs) nationwide into our latest report: From CBOs: Financial Outlook, Cost Drivers, and the Path Forward for Higher Ed.

Short-term caution, longer-term confidence

The mood among CBOs is mixed. Only 43% expect their institution to be financially better off in the next year — down sharply from 56% the prior year. Unpredictable enrollment, unstable funding, and rising operational costs are all weighing on near-term sentiment. And yet, 73% of CBOs still express confidence in their institution's five- to ten-year financial prospects, with the most optimistic institutions tending to have diversified revenue, healthy endowments, and proactive enrollment strategies.

The cost problem isn't going away

Administrative spend has grown more than 270% since 2002, far outpacing enrollment growth and instructional spending. Personnel costs are a top concern for nearly half of CBOs, and 63% of institutions will fund less than a quarter of their deferred maintenance needs this year — a slow-building risk that complicates long-term planning even for otherwise optimistic leaders.

Technology is the path forward — but adoption lags

Leading institutions are investing in data-driven operations and AI-enabled efficiency to close the gap. Colleges with institution-wide AI adoption report meaningful efficiency gains, improved student outcomes, and significant operational savings. The catch: only 6% of institutions report comprehensive strategic investment in AI, despite widespread recognition of its value. The opportunity for everyone else is significant.

Download the full report

Want to dig into the complete data? Download our report for a full look at how CBOs are navigating today's financial landscape and positioning their institutions for long-term success.

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