5 Ways Strategic Financial Planning Supports Long-Term Financial Health in Higher Ed

Many colleges and universities today face a perfect storm of financial pressures: shrinking enrollment, declining tuition revenue, and funding reductions. When Renaldo Domoney, Assistant Vice President for Budget, Finance, and Analytics at Western Kentucky University (WKU), stepped into his role in 2021, the university had endured a 19% drop in student headcount and a nearly 25% decline in net tuition revenue. WKU had also increased its discount rate in an effort to attract more students. 

The institution’s existing budgeting process at the time did not support the speed, accuracy, and collaboration required to stabilize and grow WKU’s financial position. In response, university leaders overhauled the outdated system and adopted Axiom® Strategic Financial Planning (SFP), which helped them cut costs, improve decision-making, and build a sustainable path forward.  

WKU’s experience highlights five ways robust strategic financial planning tools directly support cost savings and revenue growth in higher education. 

1. Shorter budget cycles increase agility  

Prior to the transition to Axiom, WKU’s budget process was slow, fragmented, and error prone. “Our budgeting process was emails, spreadsheets, handwritten notes — it was very manual, which takes a lot of time and leaves room for a lot of errors,” said Domoney.  

By replacing manual processes with an integrated budgeting platform, the university streamlined operations and dramatically shortened the budget cycle.  

“If we really wanted, we could get our budget done in three weeks pretty easily,” Domoney said. The university typically expands that timeline to accommodate other priorities, but the ability to complete the process quickly can translate into lower administrative overhead and greater responsiveness when conditions change mid-cycle, which can directly impact the bottom line. 

2. Centralized financial data prevents costly errors 

With the implementation of Axiom, WKU created a single, trusted source of financial information with automated daily imports of financial, human resources, and enrollment data.   

“We made sure that our import is automated,” said Domoney. “We bring it in every day, as well as budget detail down to the transaction.”  

Creating a central source of information prevents duplicate data entry, reduces the need for time-consuming reconciliations, and ensures leaders work from accurate numbers. Ultimately, this means fewer budget-impacting errors and faster resolution of any discrepancies.

3. Financial transparency drives cost accountability 

By providing role-appropriate access to financial information, WKU encourages a culture of accountability across the university. “With collaboration comes accountability, because we’re sharing goals and financial information with everyone at the same time in open discussions,” Domoney explained. 

To promote this, WKU created a budget executive committee, which includes deans, faculty senate representatives, and other departmental representatives. All budget increase requests go through this committee, which ensures that resource allocation decisions are made collectively, with everyone basing those decisions on the same data.  

This level of transparency reduces unnecessary spending, builds alignment between resources and institutional priorities, and encourages department leaders to understand the financial implications of their decisions. 

4. Rapid, informed decisions protect revenue 

When revenue streams are unpredictable or unstable, colleges and universities must have the ability to make quick, confident decisions. With the implementation of Axiom, WKU brought reporting, planning, and scenario modeling into one place, giving leaders a comprehensive view of the financial landscape. 

“We want to make sure that we’re nimble and we have the information to make data-driven decisions fast,” said Domoney. 

Armed with timely, accurate data, university leaders can respond swiftly to shifts in enrollment, tuition, and funding. The ability to model scenarios and see the financial impacts in real time enables institutions to make proactive adjustments rather than reactive fixes. For budget leaders, this level of agility can help protect revenue streams and mitigate unnecessary costs. 

5. Incentive-based budgeting boosts revenue generation 

WKU leveraged its planning system to support a shift from traditional incremental budgeting to an incentive-based approach.  

“Now a lot of the budget decision-making is done at the unit level because they know their budgets and goals much better than the central university office or budget office does,” said Domoney. “We want to reward performance but also empower the deans, faculty, and department chairs, so they can be entrepreneurial as they’re looking at their curricular programs.”  

Under this method, the university can allocate revenue in ways that directly link unit performance to budget growth. “If you grow or stabilize your enrollment, or have a lot of student success, you’ll be able to grow your budgets,” he added.  

At WKU, 75% of tuition revenue goes to the college of instruction and 25% to the student’s college of record. Leaders divide state appropriations by function, with clear incentives for instruction, research, and performance outcomes. As a result, colleges have a tangible financial stake in attracting and retaining students, as well as improving efficiency. 

Conclusion  

Strategic financial planning tools, combined with a commitment to transparency, accountability, and collaboration, can position universities for greater financial stability and agility. With the right tools, higher education budget leaders can create the right conditions for immediate cost savings and long-term revenue growth — equipping them to weather today’s challenges while embracing emerging opportunities. 

To learn more about how Axiom Strategic Financial Planning can support long-term financial health for colleges and universities, schedule a demo.