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74% of schools increased their technology budgets.[6] Thirty-six percent expect IT expenses to increase further in 2021-2022.[7] Other schools appear to be angling to attract and retain staff despite the cost: 43% increased salaries (compared to 21% who cut them), and 74% hired additional staff (though data from a different sample of NAIS members found that 30% had implemented a hiring freeze, while 19% instituted layoffs).[8] Additionally, 38% of schools have increased their general financial aid budgets, with 31% increasing it by more than 5%. Fifty-four percent have established a separate emergency grant fund for students needing additional assistance.

Despite the need for additional teacher training in online and hybrid learning, professional development budgets have frequently been cut to make up for additional spending elsewhere, with 41% of the schools decreasing the amount allocated (and 26% decreasing it by more than 16%).[10] Thirty-nine percent of schools are likely to continue to reduce professional development in 2021-2022, and 22% may freeze it altogether.

adding new degree programs was a common and successful tactic for boosting enrollment during the Great Recession and one that was also popular with faculty.

A parallel tactic for independent schools in markets that have seen increased demand for their programs, whether in-person or online, would be to add a part-time or afterschool component for parents worried about learning loss for their public school students.

49% of schools experienced a decrease in enrollment for the 2020-2021 school year, with 33% seeing a decrease of greater than 5%. At the same time, 47% of schools reduced their fundraising goals from the previous year.[2] Tuition revenue will only help fill the gap at some schools: 49% increased their tuition, while 41% kept it the same and just 5% of schools reduced it.[3] However, 70% do expect to raise tuition in 2021-2022.[4]

The goal of financial sustainability seems to have been superseded by the reality of teaching during a global pandemic

One-time revenue shortfall (with expected rapid recovery): This scenario is optimistic during the pandemic, but schools that were unable to hold a large revenue-earning event in 2020, such as an auction, community fair, or summer camp, but expect to be able to do so in 2021 can rely on endowment funds for the time being. One-time or short-term expenses: Schools may need endowment funds to repair the campus after natural disasters or offer emergency financial aid grants for families facing hardship. Short-term expense for long-term savings: Schools that haven’t already done so, or haven’t done so to as full an extent as they would like, can use endowment funds to upgrade technology or PPE infrastructures in order to attract and retain students in the long-term.

When making financial decisions, school leaders need to be honest about the challenges affecting their final choice.