“You’re going to have less tuition revenue, you’re going to have less financial aid, you’re going to have less housing revenue, you’re going to have less housing cost of goods sold, you may or may not have less expenses for, say, faculty and teaching and instruction cost,” Smith said.
Whitebirch takes all of that into account, plus additional layers such as endowment returns, and then calculates the knock-on effects over several years, Smith said.
That time is gone, particularly in the Northeast and the Midwest, where the number of high school graduates is declining, forcing schools to be more careful with money when hiring faculty for a new program. Executives at several universities said PFM’s new Whitebirch multi-year planning software, which it bought in late 2015, represents a big leap over the Microsoft Excel-based system that PFM, a major provider of consulting, asset management, and financial advice to governments and nonprofits, provided to clients. Starner, associate vice president for finance and enterprise risk manager at Franklin and Marshall College in Lancaster.
“It’s way more robust than Excel, which is what most schools use right now. It arrives at a time when schools need a better handle on everything, not just the everyday business of teaching, but also the cost of buildings and debt ratios, for example, Starner said.
Many young people develop a negative attitude toward education.
Though schools vary, this is likely because there is limited freedom and self-direction in middle and high school.
Hotel Ponce de Leon, shown in 2013 is the centerpiece of Flagler College. Augustine, Fla., institution that uses PFM’s new financial planning software that has been customized for higher education.
All they had to do was raise tuition rates for ever-increasing numbers of students. These decisions are bigger because the margin for error is much smaller,” said Frank Candio, a vice president at PFM Solutions LLC, a Philadelphia company that is rolling out a salve for more difficult times: a new financial planning program for higher education, public schools, and local governments.
We tell our story to credit rating agencies,” Smith said.
“We’re rated by Moody’s, Fitch, S&P, and they need to know how we’re thinking about financial matters.
Employment at PFM, which has 35 offices in 26 states, has climbed to 650 from about 500, over the last three years.