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April 25, 2026

Can Systemness and Tech Help Save Higher Ed?

“Our people make sacrifices every day so that we can survive together as a whole.”

 

By  Rachel Toor

The Sandbox

Inside Higher Ed Insider
image of people around a table

From Rachel Toor

This week, after being initially overwhelmed by the extravaganza that is Ellucian Live, I was glad to retreat to a bespoke conference-within-the-conference gathering on higher ed systems convened by Dan Greenstein, formerly of PASSHE and now helping Ellucian think through how data and technology can support our sector.

We talked about the challenges, and Dan brought the data: About half of public institutions—including systems—are at grave financial risk. Even where some campuses are strong, profligate sons can bring down the whole family. In the room were leaders from university, community college, and private systems, along with accreditors, SHEEO, and state offices—many of whom have graduate degrees in painful change.

After a candid and yes, sobering, conversation, we got a preview of a new Ellucian tool. It uses AI to help students see which of their credits will transfer, map a path to a degree, and even identify institutions where that path makes sense. Even more striking: The reverse-transfer function allows institutions to award degrees to students who don’t realize they’ve already earned them.

I left excited by a glimpse of where higher ed technology is headed and what AI makes possible. When I got home, the first thing I did was call my former work wife, the co-founder of IHE and this newsletter. Doug Lederman wrote about some of this in a recent column. We spoke at length about the transfer tool. Nearly two decades after the Student Unit Record System was killed—and with the National Student Clearinghouse only partially filling the gap—I found myself struck by how close we may be to solving a problem we once abandoned.

Such tools are powerful, and they will only improve. They aim to address higher ed’s biggest challenges: tailoring lifelong learning, connecting education to careers, and responding to student, employer, and societal needs.

But who actually gets to use them? Will they reach students like mine, who bounce around among underresourced institutions? If only a subset of colleges benefits, technology will once again widen, not narrow, higher education’s equity divide.

Closing that gap will require shifts in how we think and operate. Dan Greenstein likes to talk about two things: his granddaughter, Alma, and scale. The data are clear. Scale is the strongest hedge against risk, but achieving it will require universities and colleges to share and even consider integrating business and academic functions. Maybe financial exigency or a desire to do what’s best for our students and their communities will inspire institutions to stop shaking their own pompoms partner with one another and collaborate in creative, new, and mutually sustaining ways.

Systems may have a leg up. They are already big. But they are also diverse in terms of structure, governance, and leadership. Technology will help provide some of the answers, but it’s also going to require a change in mindset and the recognition that we are all in this together.

The piece that follows is from a president who has lived this reality.

The writer is a current president.

Even before I accepted my current role, I received a fair number of job inquiries. None resonated with me the way this institution did. Its mission aligned with my own life story. Serving a diverse student body—many of whom face similar economic and social barriers—is not just professional work for me; it is personal.

This is my fifth year at a university in a statewide system. We are also the least funded campus in that system. We serve a deeply diverse community, often with limited economic means, while state funds are distributed largely by legacy rather than by any formula tied to student head count, mission, or performance.

By nearly any objective measure, our institution is poor.

No one on my team likes that word. They gently prefer “underresourced.” I understand the instinct. Diplomacy, however, is not my strongest suit; clarity matters to me. What matters even more is that I have trained my team to speak up, whenever and however necessary. We grow stronger together not by avoiding hard truths but by confronting them honestly.

Last year, every campus in our system announced structural deficits. The causes were familiar: uncertainty around federal research dollars, declining state support, stagnant enrollments, and rising costs. Publicly, these deficits were framed as systemic. In reality, many were campus-specific. To be candid, the system itself has been extracting funds from individual campuses since I started this job.

Strategically, we chose to go with the pack and released our own structural deficit update. Ours was modest, especially considering that we receive the least subsidy in the system. The first announcement barely registered. The numbers from other campuses were unimaginably large. When donors and alumni began asking follow-up questions, we issued a second update. Almost immediately, rumors spread that our institution had received an increase in state support.

That was not true.

What was true is this: We closed a structural deficit without laying off a single employee.

This did not happen by accident, and it certainly was not luck.

When I arrived on campus, I encountered a pervasive inferiority complex. Too many people were living in the shadow of the flagship campus. I saw something very different. I believed I had joined one of the best institutions in the country—not despite its challenges, but because of them. The first order of business was to end the victimhood mentality. We talked openly about who we are. We celebrated our people relentlessly. Think like a winner and act like a winner became rule No. 1.

Decades of underfunding had made the institution resource-anemic. Survival required discipline. Every dollar mattered, and that reality had to be normalized rather than resented. We established clear financial controls: Every new hire and every replacement position required my approval, and this policy was communicated transparently across campus. Yes, some processes slowed. Occasionally, there were complaints. More often, there was understanding and cooperation. Respect for financial policy and disciplined spending became rule No. 2.

Finance is a language many people actively avoid. Budget conversations can feel abstract, intimidating, or exclusionary. Yet no financial strategy succeeds unless people understand the numbers and trust the decisions behind them. We made simplification a priority. For a public university’s operating budget—setting aside earmarked research dollars that are rarely operational—there are only three revenue sources: federal, state, and tuition. If any one of them declines, the budget shrinks. We focused on big numbers, repeated simple examples, and replaced jargon with plain language. Make finance understandable became rule No. 3.

Early in my tenure, I shared a one-page framework with the senior executive team and deans on how to approach budget reductions. It centered on mindset as much as mechanics. Never do across-the-board cuts; they are cowardly. Cut with intention. There are only three ways to balance a budget: Cut expenses, increase revenues, or combine both. No institution cuts its way to excellence. At the same time, in a state with limited population growth, revenue expansion alone is not a reliable solution. The answer is a deliberate, values-driven combination—a jigsaw puzzle, not a blunt instrument. Approach deficits with courage and conviction became rule No. 4.

At social events, people would often say to me, “You’re so lucky—you don’t have a big deficit.” I always replied politely: Luck had nothing to do with it. Our people make sacrifices every day so that we can survive together as a whole.

We share that vision unapologetically with donors, alumni, and employers. We are focused. We honor our core. We tell our story without embarrassment. We are no longer the metropolitan underdog propped up by excuses. We have built a strong people-centered culture, and we no longer shy away from saying who we are and what we stand for.

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Feel free to forward this email to anyone you think may find it interesting/informative/snarky

Welcome to new subscribers. We (still) believe in diversity, equity, and inclusion. We believe in access. We know the field isn’t level but think everyone should get to play—not just those with pedigrees and good breeding, but also the scrappier ones who may have had a rougher start in life. This applies to institutions (community colleges as well as research universities), leaders (the Ivy-all-the-ways and those who came from less “traditional” backgrounds), and animal companions (we’re not speciesist).

This is the one space in The Sandbox where presidents can promote their institutions, but only by emailing me photos of nonhuman family members. Otherwise, you just get to see pictures of my mutt, Harry, every Saturday morning.

Also, Inside Higher Ed’s editor in chief, Sara Custer, is speaking with higher ed leaders about how they’re responding to financial pressure at their institutions. Sign up here to attend the free webcast “A New Playbook for Financial Stress” happening next Wednesday, April 29, at 2 p.m. Eastern.

 

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The Sandbox

Not your typical weekly newsletter. This is a space where presidents and chancellors can say what they really think without fear. Everyone is welcome to read, but only those who have been in the top job can submit to us. The Sandbox, by Rachel Toor, is an exclusive benefit of our paid Insider membership program.

 

 

The Sandbox Archive

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September 12, 2026

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August 29, 2026

Wackadoodle Newsletter Turns 3

August 22, 2026

Presidents: Quit Yer Whining

August 15, 2026
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