The focus of this year’s Outlook is turning the one-time gains from the pandemic into positive economic momentum. Many schools experienced significant increases in revenue from the Higher Education Relief Fund (HERF), Paycheck Protection Program (PPP) (with its related loan forgiveness), Employee Retention Credits, and other gains. Some schools enjoyed added contributions and the positive impact of investment earnings (those experienced prior to 2022).
In many cases, these substantial one-time gains were visible in fiscal year (FY) 2021 external financial statements. Some of this activity also carried into FY 2022, including Employee Retention Credits being harvested. Knowing this largesse will end shortly is a reminder that forward vision is more important than ever.