Building Financial Resilience to Strengthen the Academic Enterprise
Drexel University is proactively addressing the challenges facing the higher education sector on two parallel tracks: While we are transforming our academic enterprise to position Drexel for future success, we are also building financial resilience by permanently aligning our expenses with revenue. This page provides a high-level overview of the University's strategies and progress toward building financial resilience.
Goal: The goal is to build financial resilience to support and strengthen the University’s academic enterprise by achieving modest, positive and sustainable operating margins. The University is continuing its multi-year plan to solve the structural imbalance in the operating budget by identifying and implementing expense reductions, determining cost avoidance opportunities and revenue enhancements above the base budget model, and pursuing one-time net positive enhancements.
As the higher education environment continues to shift, the University must regularly reassess its assumptions and update its financial plan. Demographic trends, regulatory changes, enrollment pressures, and rising operating costs all influence the University’s long-term outlook. These factors require continued evaluation and action to ensure the institution remains strong, resilient, and able to support its academic mission.
Progress as of December 2025:
- $93M of expenses have been removed from the budget since July 2024;
- $17.9M of expense reductions and revenue enhancements are currently being implemented;
- $11M of additional potential savings have been identified;
- One-time opportunities being implemented or evaluated: $74M net, one-time gain.
(Progress toward goal will be updated quarterly: March, May, September, December.)
Why This Matters: Financial resilience is about more than balancing budgets. It enables the University to strengthen academic programs, invest in student success, support faculty and research, and modernize systems and services across campus. A stronger financial foundation ensures Drexel can continue delivering a high-quality education and remain competitive and mission-driven in a rapidly changing environment.
Permanent and One-Time Actions: To support long-term sustainability, the University uses a mix of permanent and one-time actions. Permanent actions reduce the ongoing cost base and strengthen the financial structure of the institution. One-time actions provide short-term support within a specific fiscal year but do not address long-term financial pressures. The plan prioritizes permanent improvements while using one-time measures only when needed to stabilize annual results.
Strategies include but are not limited to:
- Streamlining and reducing the administrative structure of the University and implementing shared services to better support the academic mission and achieve efficiencies;
- Growing NTR through improved enrollment and retention;
- Diversifying grant funding from at-risk funders to growing sectors and foundations;
- Growing partnerships and fundraising;
- Reviewing academic unit expense/revenue ratios;
- Implementing cost-saving opportunities related to central and distributed IT services, structures, systems, etc.;
- Reducing contractual requests;
- Implementing benefit cost savings;
- Improving operating and business processes, such as procurement modernization, and reviewing categories of spending across the University; and
- Monetizing real estate holdings, optimizing space and reviewing leases.
Next Steps: Over the next several years, the University will continue evaluating administrative structures, academic operations, technology services, benefits and compensation, procurement practices, and opportunities to strengthen enrollment and student outcomes. Progress will continue to be reported quarterly as part of the University’s commitment to transparency and long-term planning.
Community Input: Please share your ideas for expense reduction, efficiency, or revenue enhancement through this Qualtrics form.
Messages About Building Financial Resilience:
Update from University Leadership Recording (sign in with Drexel ID and password to view)
October 10, 2024
Building Financial Resilience to Strengthen Our Academic Enterprise
October 10, 2024
Becoming a More Academically and Financially Resilient University
October 1, 2024