Impact of Coronavirus on Cash Flows in University Budgets: Exploratory Study

There are dire predictions for future enrollments in 4-year colleges due to Coronavirus. According to Lapovsky (2020), undergraduate enrollments may decline 15 to 40 percent. Therefore, undergraduate revenue declines could be as much as 20 percent and more for individual universities. Students may be reluctant to choose expensive name-brand schools that have moved to online (remote) instruction. Instead, students and parents may choose schools that are in-state or closer to home (Poliakoff, 2020). International student enrollments are also expected to decline due to travel restrictions. These difficulties are likely to cause cash flow challenges for many universities around the country. This study provides key insights as to the cash flow problems faced by university leaders and highlights cash flow management opportunities that can provide some relief to colleges. Cash flow issues are synthesized under (1) Activities that cause cash inflow increases (short term and long term) and (2) Activities that cause cash inflow decreases (short term and long term). General cash inflow decreases, and cash outflow increases are also briefly discussed.