Campbellsville University leaders announced Friday, May 1, that the institution has approved a balanced budget for the coming fiscal year, marking a major turnaround after almost two years of financial challenges.
The balanced budget signals increased financial stability for the university following enrollment declines in international graduate programs. Leaders said the progress helps secure the institution’s future while continuing to prioritize students and their overall experience.
University officials said the financial challenges began almost two years ago, largely impacted by international graduate business enrollment, particularly at the Louisville and Los Angeles locations. Despite those setbacks, leaders said the university was able to recover faster than expected and return to financial balance through a combination of efficiency and program growth.
Dr. Rush Sherman, vice president for finance at CU, said the turnaround reflects both financial discipline and strategic expansion.
“We’ve got good news, we have balanced our budget for the coming year,” Sherman said. “And that is something remarkable.”
Sherman said the university did not rely solely on cutting costs to reach a balanced budget.
“The way we get back to balance is not just by cutting costs, although being efficient is part of it, it’s also growing programs,” Sherman said.
CU President Dr. Joseph Hopkins said the university’s financial challenges reflect broader issues across higher education.
“It’s been a tough time for higher education in general across the United States,” Hopkins said. “And for those that were heavily invested in international programs, there’s been that extra measure of challenge.”
Hopkins said the university was especially impacted at its Louisville and Los Angeles sites, where enrollment declined in graduate business programs.
Leaders said new and expanded academic programs are helping drive recovery, particularly in high-demand workforce areas.
“There aren’t enough physical therapists. There aren’t enough nurses,” Sherman said. “There aren’t enough of these disciplines in our communities, welders, HVAC. These are all needs that we can get to.”
Dr. Hilda Legg, chair of the board of trustees, said the university’s response to financial challenges involved strong collaboration across leadership and governance.
“I don’t think I have seen a time when actual members of the board of trustees, who have experience in some of these areas, have worked hand in hand to try and support the leadership here,” Legg said. “It’s been a wonderful collaborative effort to observe.”
Legg said the challenges also pushed the university to rethink academic offerings.
“I think that the challenges that we had forced us into really looking at new programming,” Legg said. “What do our students really need?” What is the job market out there that we need to be training them for?”
University leaders emphasized that students remained the top priority throughout the financial challenges and recovery process.
“Well, one thing is it secures the future of the institution,” Sherman said. “So as a student, their time is an investment, and that investment is secure because of the things we’re doing now.”
Hopkins said faculty and staff worked to protect the student experience while making financial adjustments.
“Our faculty and staff have done a great job of protecting the student experience,” Hopkins said. “As we go forward with the prospect of this balanced budget in front of us, now we have the opportunity to think forward about adding to the student experience.”
Leaders also discussed increased transparency and improved financial oversight as part of the university’s strategy moving forward.
“We built lots of tools into the budget to create transparency for internal stakeholders,” Sherman said. “If we get off course, those things are important because at the end of the day, it’s the budget for all of us, not just a few.”
Officials said the university also saw strong support from the community during the financial challenges, including increased giving from faculty, staff and trustees.
“The trustees have been amazing, in their counsel, their encouragement, and their giving,” Hopkins said. “One of the things that has helped us through this challenge has been the generous support of our community.”
University leaders said they expect continued growth as new programs develop and enrollment begins to recover.
“Challenge is never fun, but getting through it, there’s a double benefit,” Sherman said. “One of them is that you know that you can be agile.”
Legg said the board remains optimistic but cautious moving forward.
“We have to be cautious. We have to be careful,” Legg said. “It is still not an easy road, but we are very hopeful and optimistic.”
