Innovative HBCUs are utilizing recent federal grants as well as other funding sources to improve campus appeal, provide equitable education opportunities, and even drive sustainable revenue. Recently at the National Association of College and University Business Officers (NACUBO) annual meeting, Bulls hosted a roundtable to discuss these issues with HBCU leaders Undria Stalling, Senior Vice President of Business & Finance and Chief Financial Officer at Morehouse College, and Robert Pompey, Vice Chancellor of Business & Finance and Chief Financial Officer at North Carolina Agricultural & Technical State University (NCA&T).

From deploying robots to lobbying on Capitol Hill, each shared examples of how their HBCUs are making a social and economic impact on campus and in the community, while fiscally supporting and growing their institutions through diverse funding sources.

One such source was the American Rescue Plan (ARP) Act, which allocated $36.9 billion in funding to the Higher Education Emergency Relief Fund (HEERF III) to support HEIs with costs associated with remote learning, COVID-19 monitoring and mitigation, offsetting student expenses, and replacing lost revenue for schools.

Known for science and technology, NCA&T opted to utilize some of their HEERF funds to experiment with new tech, including the Starship robot program. Like many HEIs, dining areas at NCA&T were crowded around mealtimes. They deployed 50 robots to deliver food around campus, alleviating lines and allowing for social distancing during the pandemic. Additionally, the program is bringing in food service revenue for the university. 

Beyond government funding, NCA&T has thought sustainably about its foundation dollars as well, forming the NCA&T Real Estate Foundation to create a partnership to develop and finance commercial real estate projects in and around campus. This public-private partnership (P3) gives their public institution an infusion of private capital, management and expertise. Not only does this benefit the university’s portfolio, but it is having an immediate impact on campus appeal and student retention.

“We had a housing shortfall,” Pompey told the group. “We had a number for apartments that were constructed around our campus because there were these prospectors...they were having trouble. We decided to buy almost every apartment within a quarter mile of our campus.... We've purchased five apartment complexes. And [students] want to go to these apartments. They don't have to worry about paying the utilities because it’s paid for through the university. They don't have to worry about paying the rent because it’s coming out the financial aid. They feel like grown folks, but at the same time being part of our campus community, too.”

With their P3, NCA&T is also developing a new mixed-use property called The Resurgent, featuring 80 apartments, retail, restaurants, an office complex with an entrepreneurial hub, and a health clinic. 

As of 2019, the university’s economic impact was estimated at $1.5 billion for North Carolina. Pompey made sure to mention that there are five public HBCUs in North Carolina and all of them are pillars of their communities.

“North Carolina A&T is located in east Greensboro, which is the most challenging area in Greensboro,” Pompey said. “What we have decided is that, if not us, what's going to make a difference in our community? We decided to make an investment in ourselves.”

And it’s working. NCA&T enrollment is up 26% since 2015 and 96% of alumni surveyed say they would attend the school again. Black students that graduate from HBCUs like Morehouse or NCA&T are likely to make more money than if they graduated from a predominantly white institution (PWI); oftentimes because they are recruited intentionally by employers right on campus. Pompey and Stalling agreed this was a crucial value proposition for HBCUs to attract talent.

But while most HEIs face funding constraints, the dynamics of public and private institutions differ.

When Morehouse received designated federal funds, some of the funds were placed in their investment portfolio. Not only do the earnings support operations, but they are also a part of their sustainable fundraising strategy. Having a sizeable endowment will go a long way in attracting and retaining donors. 

With strategic plan and campus master plan in-hand, Morehouse has partnered with JLL for project management, P3 negotiations with private developers, and as a resource for real estate best practices.

 “Inside of Morehouse we think, ‘We need this,’” Stalling said. “But until you really dig into the data, and know what data to collect, you really don’t know what the demand is. Having a partner to [say] ‘this is what the data provides’ allows you to make a better and more informed decision. We have a professional facilities and campus improvement area, but development is not something that we do daily. And so again, it’s just so important to ensure that you have the resources that you need so your institution can make the best decision for years to come.”

Institutions across the nation are struggling with how to repair, expand and modernize their core infrastructure and critical facilities. To bridge the gap between available public resources and the cost of needed infrastructure and facilities, public institutions are turning to P3s, maximizing the strengths of both the public and private sectors.

By examining their programing and financial needs, Morehouse and NCA&T leaders have strategically determined how to utilize their funding, as well as look to the future with their partnerships, advancing their institutions’ missions: providing equitable high-quality education. Both HBCUs have optimized partnerships and other resources to generate revenue and improve their schools and community, driving campus appeal and student retention. The ripple effect of these efforts is undeniable in the measurable social and economic impact of in their local and regional communities.

If you’re considering a P3, you’ll want to read 8 crucial factors to consider before embarking on a public-private partnership.