TIAA Financial Leaders Exchange–Finance in 5

Navigate complexity with confidence: Connect with the insights that matter

The TIAA Financial Leaders Exchange brings together institutional CFOs and financial leaders from higher education, health care, non-profit, K-12, and research institutions. Through candid conversations with industry experts, we deliver actionable insights on critical topics for this group—from institutional resilience and scenario planning to emerging technologies and long-range financial modeling.

The TIAA Financial Leaders Exchange aims to connect institutional finance leaders with the insights they need to navigate complex economic environments. For our first two Exchange sessions, we sat down with former Kansas City Fed President Esther George and Huron’s Managing Director Jaime Ontiveros to discuss the "new normal" for university solvency.

Here are five insights to sharpen your perspective in under five minutes.

1. The big number: 3 years

The insight: The difference between simply staying afloat (solvency) and being truly responsive (resilience) is defined by a three-year runway.

The "so what": Many institutions still lack a long-range plan beyond the annual operating budget. Without a rolling 3-to-5-year model, CFOs remain in a reactive state, unable to pressure-test the assumptions that drive their institution’s survival.

2. The pulse check: Is your budget "clogged"?

The insight: Jaime Ontiveros compares a university budget to the piping in a house.

The peer reality: If the "pipes" are broken, the house won't function, regardless of how it looks on the outside. CFOs are increasingly seeing "use it or lose it" mentalities—like departments stockpiling supplies in closets to avoid budget sweeps—which indicates a fundamental break in stewardship and mission.

3. The shift: from "static" to "scenario"

The insight: We are moving from a 40-year period of low interest rates into a more volatile, "new normal."

The strategy: Esther George notes that the Federal Reserve manages uncertainty by challenging what they think they know. CFOs must move away from a single-forecast model and instead "game out" multiple scenarios—such as interest rate spikes or federal funding pullbacks—to identify which risks are survivable and which are terminal.

4. The quick win: the "controller-budget" coffee

The insight: A major point of failure in institutional health is the wall between the accounting team and the budget office.

Monday morning action: Ask your Controller and your Budget Director: "How often do you two meet?" If the answer isn't "constantly," you have an immediate opportunity to marry actual performance data with future forecasting.

5. The forward look: the "iceberg index" of AI

The insight: While the immediate ROI on AI may feel flat, a "massive amount of investment" is pouring into the space.

The horizon: Esther George highlights the Iceberg Index, suggesting AI is fundamentally changing work skills beneath the surface. For Higher Ed, this isn't just an operational tool for procurement; it is a permanent reset of the labor market and the types of degrees students will demand in the next decade.