

University of Âé¶¹´«Ã½ President Wendy Hensel is moving UH toward a more coordinated approach to managing its financial resources, with the 10 campuses sharing risk and investing collectively in priorities that benefit students across the system.
Hensel outlined the approach during her presentation “Collaborative Strategic Investment: A New Paradigm for UH” to the UH Board of Regents on August 20 at Kauaʻi Community College, describing it as part of a larger shift toward operating Âé¶¹´«Ã½as one university system rather than 10 largely independent campuses.
“What we have is a very decentralized 10-campus system, which means that we are often pulling in different directions in ways that compete with each other that are not optimal,” Hensel said.
The new approach is built around what Hensel described as a “we rather than I” philosophy¡ªmaintaining the individual identities and priorities of each campus while taking greater advantage of the financial strength of the entire UH System.

Historically, campuses have largely managed their own reserves, tuition balances and financial risks. That meant campuses generally had to respond on their own to challenges such as enrollment declines while also funding many of their own strategic priorities. It has also contributed to significant differences across the system, with some campuses accumulating substantial cash balances while others have had fewer resources available.
Across the system, campuses have held a fluctuating total of about $200 million in unutilized cash balances. Hensel described having those resources as a “gift” compared with universities across the country facing structural deficits and other significant financial challenges. The opportunity now, she said, is to put more of those resources to work for UH students, faculty and staff.
“We are moving from ‘preserve’ and ‘defend’ capital to ‘deploy’ and ‘anticipate’ the future so that we can meet the needs of the moment that we’re in,” Hensel said.
Sharing risk across 10 campuses
One major step has already been taken. UH has consolidated approximately $156 million that had been held as reserves at individual campuses into a single systemwide reserve. Instead of each campus carrying its financial risk alone, the university now has a shared safety net that can be used when significant needs or emergencies arise anywhere in the 10-campus system.
UH is taking a similar approach to excess tuition balances. Campuses will retain 20% of their tuition cash balances, preserving resources for campus-specific priorities and needs beyond their normal annual operating expenses. Funds above that level at the close of each fiscal year will be redirected to key strategic investments across the university. The approach follows existing state law that directs excess tuition funds to be returned to the system annually for strategic use.
The goal, Hensel said, is not simply to shift money from one campus to another, but to use UH¡¯s collective resources where they can have the greatest impact while preserving appropriate campus autonomy. The approach supports Hensel¡¯s broader goal of establishing a more consistent standard of care for students across the 10 campuses. A student, faculty or staff member¡¯s access to basic technology, services and support should not depend on the financial condition of their particular UH campus.
Investments will focus on needs that are difficult for individual campuses to address on their own effectively and efficiently, such as modernizing Wi-Fi infrastructure across all 10 campuses and establishing a regular, equitable replacement schedule for technology such as laptops. By acting collectively, these improvements can be secured at a lower cost and result in greater strategic impact across the system.
The shift is part of a larger change in how UH approaches budgeting and planning¡ªconnecting financial decisions more directly to the priorities of the university¡¯s strategic plan and using the collective resources of the 10–campus system to better serve students across Âé¶¹´«Ã½.
