Abstract for: Surviving Budget Cuts in Higher Education: A System Dynamics Approach to Model Long-term Impacts

Post-secondary institutions often face significant financial challenges, particularly in times of economic crises or shifting governmental priorities. Budget cuts have emerged as a critical issue and long-term consequences. This paper examines the effects of budget cuts on post secondary institutions, employing a series of simulation models using system dynamics. Various scenarios and their potential impacts are explored using Vensim by analyzing different scenarios and their implications across key areas such as graduate quality, education quality, and infrastructure. Results shows that funding cuts to higher education, especially when suddenly implemented, may result in permanent impacts to the quality and consequently the enrollment in the long term – even if the funding cut is restored in later years. The findings are intended to inform policymakers, administrators, and stakeholders about the trade-offs involved in strategies to respond in budget reductions for any other post-secondary institution.