There’s plenty of talk about the future of higher education — and much of it focuses on finances, facilities, and finding new ways forward. But California remains at the center of that story, home to nearly 20% of the nation’s full-time college students and a higher education system that’s both a testing ground and a trendsetter for the country. 

At a recent SCDF panel, leaders from California universities gathered to tackle one big question: how can public institutions adapt to an increasingly uncertain environment while continuing to deliver on their academic missions? 

Panelists included Lauren Friedman, Executive Director of Capital Programs at the University of California Office of the President; Patrick Lenz, Interim Executive Vice Chancellor and CFO for the University of California; and Sam Jung, Vice President of Balfour Beatty Campus Solutions. Together, with moderator Matt Do, Managing Director of JLL’s National Advisory and Transactions practice, they explored the realities of funding, innovation, collaboration, and inclusion, shaping the next generation of campus development. 

Friedman opened by highlighting the University of California’s progress despite fiscal headwinds. In recent years, the UC system has delivered 15,000 new student beds, advanced major decarbonization goals, and launched transformative projects, such as the 21-acre UC Riverside Medical Center, which will serve over 4 million Inland Empire residents. 

Yet, Friedman acknowledged that the outlook remains challenging. Federal research cuts and shifting priorities are forcing the UC system to rethink how it allocates resources. 

“We’re continuing to shape spaces that support our mission,” Friedman said. “But the challenges are real. Federal cuts to research funding have shifted priorities, and we’re constantly reassessing how best to allocate resources.” 

The Funding Equation 

Lenz brought decades of perspective from both UC and CSU systems, offering a candid look at how economic cycles directly impact higher education. 

“Funding compacts between the governor and university systems are always fragile,” he explained. “Economic downturns can easily derail long-term commitments. That uncertainty makes capital planning and enrollment management extremely challenging.” 

He noted that deferred maintenance, limited housing, and shrinking capital budgets are hampering universities’ ability to meet the growing demand for students, even as they expand access to increasingly diverse student populations. 

To counter these pressures, UC has begun testing new approaches to funding and delivering projects. Friedman described the system’s “development model” pilot, which allows UC to internally finance select projects — cutting borrowing costs and improving long-term financial sustainability. 

From a private-sector perspective, Jung shared that public-private partnerships (P3s) are unlocking solutions for campuses facing financial strain. His firm, Balfour Beatty Campus Solutions, has helped institutions like the University of Texas at Austin and the University of Florida deliver projects faster and more efficiently through creative collaboration. 

“The most successful partnerships start with a shared vision,” Jung noted. “Flexibility and transparency are critical. The private sector can bring speed and risk management, but we must empower universities to make decisions that align with their goals.” 

Collaboration and Shared Resources 

A central theme of the panel was collaboration across California’s higher education systems, including  UC, CSU, and community colleges. Lenz pointed to shared facilities and housing as key opportunities to reduce costs while expanding access. 

Friedman added that new state housing grants are helping to fund intersegmental projects that serve students across systems, strengthening regional ties and maximizing public resources. 

Friedman also addressed a critical value that runs through both education and construction: inclusion. 

Since Proposition 209 limited affirmative action in public contracting, UC has found new ways to advance supplier diversity. Initiatives like Industry Days and dedicated contract allocations for small businesses and disabled veteran enterprises (DVBEs) are helping to build a more representative network of contractors. 

“Building diversity into our contractor base isn’t just about compliance,” Friedman said. “It’s about creating equitable opportunities that reflect the communities we serve.” 

To improve efficiency, the panel explored the potential of strategic mergers, such as integrating the California Maritime Academy with Cal Poly San Luis Obispo, a move designed to streamline operations and expand academic offerings. 

Lenz noted that such mergers can offer smaller institutions a path to sustainability in a strained fiscal climate. 

Looking Ahead 

As the discussion wrapped up, both Lenz and Friedman underscored a shared vision: higher education’s future depends on renewed public investment, creative project delivery, and an enduring commitment to inclusion. 

Lenz summed it up succinctly: 

“We need a future where higher education receives more funding than corrections. That’s when we’ll truly be investing in California’s future.” 

Despite financial and political uncertainty, California’s universities are not standing still. Through collaboration, innovation, and equity, they’re redefining what’s possible; developing valuable infrastructure where the next generation of ideas will take shape.