In today’s higher education industry, cash is king. At this month’s Southern California Development Forum, three campus leaders explained how shrinking enrollment pools, federal policy shifts, and tight balance sheets are changing development plans and how industry partners can help. 

The panel, moderated by Matt Bohannon, Southern California Vice President for Higher Education at Brailsford + Dunlavey, featured Chris Jennings, Vice President for Institutional Integrity and Strategy and General Counsel at the University of Redlands; Craig Seiden, Vice President for Administration and Finance and Chief Financial Officer at the University of La Verne; and Leandra Davis, Executive Director of Planning, Design and Construction at Caltech. 

A smaller pie, and more competition for it 

Bohannon opened by outlining the pressures every campus faces. The pool of traditional 18-year-old students is shrinking, and recent undergraduate growth has come mostly from dual enrollment and adult learners. Graduate enrollment is flat or falling, and international graduate enrollment dropped 12 percent over the past year. 

The value proposition is shifting: Households earning $300,000 or more are sending fewer children to college, while lower-income families, who see the biggest lifetime earnings gains, value a degree more than ever. At the same time, Grad PLUS loan changes and new borrowing caps tied to earnings five years after graduation are limiting access to some programs, such as education. 

Costs are rising as graduate student unionization drives up stipends and labor expenses, just as research dollars decline. The result is consolidation, with nearly 60 nonprofit colleges closing in the past three years. About 10 more are expected to close this year, and there have been roughly 40 acquisitions since 2020. 

Boards want to see the cash 

Asked what has most changed how their boards think about capital, all three panelists pointed to cash. 

Jennings described Redlands as tuition-driven, with an endowment of a little over $300 million and debt near its ceiling. The pandemic drew down reserves at many small and mid-sized institutions, and higher interest rates and construction costs have made new debt harder to carry. "If you're going to build, you're going to have to show us you have the cash to do it," he said, summing up his board's view. Redlands has paused projects when cash ran short. 

La Verne is in a stronger position, with about $320 million in cash on hand and no major facility additions since 2017. Seiden said the board's focus is on timing the refinancing of just under $90 million in bonds due in April 2027 and on sizing a new issue to fund a 10-plus-year master space plan now under way. At Caltech, the board's facilities, finance and infrastructure committee has shifted from approving an annual capital pool to budgeting based on cash flow. 

Planning horizons are stretching in both directions. Caltech is pairing a new 10-to-15-year housing master plan with quarterly cash-flow reviews. Redlands revisits its 10-year strategic plan every August. La Verne now requires return-on-investment analysis for every new or expanded program and reviews past decisions to see whether they paid off. "It's long-term, short-term, and exhausting," Jennings said. 

Deferred maintenance moves up the list 

With cash scarce, renewing existing buildings is competing hard with new construction. 

Caltech has 210 buildings, and 40% of its space is research space, including costly wet labs. A two-year deferred maintenance study found that even $30 million a year would not prevent its facilities' condition index from rising. What flattened the curve was combining investment with long-range space planning and selective demolition, so the campus is ready with a clear plan when the next major donor arrives. Student spaces and accessibility are a growing focus; as Davis noted, "ADA isn't just about wheelchairs. It's about quiet spaces." 

La Verne's buildings range from 9 to 109 years old. Seiden has asked his facilities team to consolidate residents in partially occupied residence halls so entire buildings can be renovated at once, which he expects to be faster, cheaper, and less disruptive to students. 

At Redlands, Jennings said deferred maintenance will take priority over new buildings. Projects that rise to the top address safety and compliance while also adding spaces that attract students. Mental health and wellness spaces are a major priority, since incoming students' needs reflect where they were in their development when the pandemic hit. Redlands is expanding its counseling center and creating calmer spaces across campus. 

Finding growth without spending cash 

The panelists described several ways to grow and diversify revenue without large outlays. Redlands has acquired three institutions in six years: San Francisco Theological Seminary, Presidio Graduate School, and Woodbury University in Burbank, now the University of Redlands Los Angeles. Apart from transaction costs, which can run into several million dollars, these deals require little cash. Jennings said a key red flag is a campus whose buildings are run-down but still carry debt, and that Redlands applies a narrow set of criteria to avoid growing "too big too fast." 

Redlands has also signed with Village Commons Partners to develop about 30 acres south of campus, at the end of the Arrow Metrolink line. The mixed-use project will include housing, affordable housing, retail, a grocery store, a hotel, and green space, providing passive income to the university. "That adage that you never sell real estate is not what it used to be," Jennings said. Caltech, whose real estate office sits within its investments office, is using its first ground lease to deliver a building aimed at keeping research talent and startups in Los Angeles. 

La Verne sits across from the Fairplex, which will host cricket at the 2028 Los Angeles Olympics. Seiden said the university has signed two agreements to house Olympic support staff, expects to announce a third with a national team soon, and is exploring third-party partnerships for about six acres of underused land. He also noted that U.S. giving reached a record $617 billion in 2025, with higher education the second-largest recipient after religion. 

Making the case to cities and lawmakers 

All three institutions are working closely with the government. Jennings frames acquisitions as a way to protect local economies and is pressing federal officials to ease barriers to them. When colleges close, he said, only one in five of their students goes on to finish a four-year degree; when they are acquired, four in five do. 

La Verne brings city economic development and planning staff into its master planning sessions and is increasing its state lobbying, with federal advocacy next. Caltech is partnering with the City of Pasadena on shared goals, including affordable housing to reduce student demand on the local rental market and sustainability efforts that go "beyond zero." 

What campuses want from designers and builders 

The panel closed with direct advice for the industry partners in the room. "If we're asking for 50,000 gross square feet, challenge the assumption," Davis said, encouraging firms to bring options because funding and needs can change mid-project. Seiden asked for post-occupancy evidence, wanting to know whether spaces built three to five years ago are used as intended and what designers would do differently. 

Jennings urged teams to design for flexibility, building one structure for three purposes rather than three separate structures, and for sustainability, since lower-impact projects can open doors to public funding such as climate-resilient districts and tax increment financing. In response to an audience question about online learning, Redlands said it renovates classrooms for HyFlex teaching. Seiden stressed consistent technology across rooms, and Davis warned that over-engineered audiovisual systems often fail the faculty who must use them.