Restructuring a University

How one institution is staying viable The following challenges may sound familiar: Financial obligations and liabilities begin to outgrow revenue from students — who are increasingly difficult to attract and keep. But cutting staff, canceling renovations and maintenance projects, delaying payments to vendors, and laying off adjunct faculty don’t turn things around. Then things get even worse. This is an in-depth case study of an institution, Henderson State University, that faced such a predicament and realized it could no longer avoid difficult decisions. It outlines the missteps made and warnings ignored. And it’s a detailed account of how, in 2022, the institution declared financial exigency, a mechanism colleges can use to engage in a transparent and orderly process to restructure. While this case study focuses on one institution’s experience, it offers insight into the factors and tradeoffs that any leader contemplating a large-scale restructuring should anticipate. This report is