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Capital Funding Strategies in Higher Education: How Universities Are Solving Infrastructure and Student Housing Challenges

Changing Higher Ed

Release Date: 04/22/2025

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With state capital support on the decline and infrastructure aging out of usefulness, higher education leaders are under pressure to find new ways to fund capital projects—without compromising mission, control, or long-term sustainability. In this episode of , Dr. Drumm McNaughton explores creative capital funding strategies institutions are using to meet urgent facility and housing demands. His guest, —shares how colleges and universities across the country are structuring public-private partnerships (P3s), securing transformational donor gifts, and leveraging local bond initiatives...

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With state capital support on the decline and infrastructure aging out of usefulness, higher education leaders are under pressure to find new ways to fund capital projects—without compromising mission, control, or long-term sustainability. In this episode of Changing Higher Ed®, Dr. Drumm McNaughton explores creative capital funding strategies institutions are using to meet urgent facility and housing demands.

His guest, Brent Miller—Higher Education Market Sector Leader at HED—shares how colleges and universities across the country are structuring public-private partnerships (P3s), securing transformational donor gifts, and leveraging local bond initiatives to move large-scale capital plans forward.

This conversation is especially relevant for presidents, CFOs, trustees, and VPs of facilities navigating deferred maintenance, campus growth, or strategic repositioning. Brent brings 30+ years of architectural and capital planning experience to the conversation, offering insights from some of the most innovative projects in higher ed capital development.

Topics Covered:

  • Why traditional state funding is no longer enough—and what institutions are doing about it

  • How public-private partnerships (P3s) work, and which types of projects they’re best suited for

  • Case studies from USC, UC Irvine, University of Michigan, UC Merced, and more

  • Donor and corporate partnership models that align with institutional missions

  • How local bond initiatives are changing the future of community colleges

  • What boards and presidents need to know about aligning capital projects with strategy and risk

Real-World Examples Discussed:

  • USC’s Iovine and Young Academy, funded by a $70M gift from Jimmy Iovine and Dr. Dre

  • UC Irvine’s interdisciplinary health sciences building—merging donor intent and design

  • University of Michigan’s Ford Robotics Building, a co-developed corporate-academic research hub

  • UC Merced 2020, a $1.3B P3 that doubled the university’s physical capacity

  • Cal State San Marcos’ early mixed-use P3 development for housing and retail

  • A facilities deal struck to replace plant equipment at cost and pay via utility savings

  • General Motors University as an early model of industry-aligned higher ed

Three Key Takeaways for Leadership:

  1. Ensure capital alignment with strategy: Every capital initiative should support the university’s mission, enrollment trajectory, and long-term vision.

  2. Build in lifecycle costs: Deferred maintenance and energy savings must be part of the upfront planning—not afterthoughts.

  3. Communicate across stakeholders: From boards and donors to students and local communities, transparency is essential to success.

This episode provides both a strategic framework and actionable insight into how today’s institutions can overcome capital constraints through innovation, collaboration, and long-range thinking.

Recommended For:
Presidents, provosts, CFOs, trustees, board chairs, and facilities executives leading campus master planning, housing expansion, or long-term capital strategy.

Read the transcript:
https://changinghighered.com/capital-funding-strategies-higher-education/

#HigherEdLeadership #PublicPrivatePartnerships #HigherEducation #HigherEducationPodcast