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Case study reveals institutional budget models and leadership responses to financial deficits in higher education, highlighting strategies for managing severe fiscal shortfalls.
Across the United States, many postsecondary institutions are facing significant budget shortfalls driven by state disinvestment in higher education, a decline in student enrollment, and fiscal challenges created by the COVID-19 pandemic. This case study focuses on how university leaders at Precarious State University (PSU) are navigating a budget deficit and deciding on a budget model. Like many institutions, PSU is having to make difficult budgeting decisions to address their financial shortfalls. The purpose of this case study is to examine the role of financial leadership and institutional budget models in addressing current financial challenges impacting the broader postsecondary landscape.
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Gray et al. (2026) studied this question.
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