Whether it’s a state finance director reallocating frozen grant dollars to keep essential services running, or a university CFO re-forecasting enrollment after research budgets vanish — finance leaders can’t afford to wait. They must act quickly to rethink plans and redirect funds to ensure optimized support for the communities they serve.
The Department of Government Efficiency’s (DOGE) mandate to eliminate waste and trillions of dollars in spending is forcing state and local governments and higher education institutions to rethink everything. Finance leaders now face immense pressure to do more with less. But hidden in the disruption is a chance to reinvent.
This blog post explores the disruptive impacts of budget cuts on public sector and higher education institutions, and how Anaplan can help these organizations navigate heightened scrutiny and tightened budgets with confidence.
The budget squeeze hits state and local budgets
The reach of DOGE budget cuts extends deeply into state and local governments, creating fiscal uncertainties that demand agile responses from finance leaders. Early actions, such as freezing grants and contracts, have halted billions in funding for key programs. This has prompted at least 26 states to form their own efficiency task forces, mirroring federal efforts to identify savings and streamline operations.
For finance leaders, these changes mean navigating shortfalls in areas such as healthcare and transportation, where federal pass-through funds are critical. The push for deregulation adds complexity, requiring teams to maintain compliance with fewer resources while adapting to lighter oversight. The challenge is clear: How do you plan effectively within constrained budgets to sustain operations without compromising service quality?
| Read the case study to learn how automated zero-based budgeting frees Crown Prosecution Service finance from hours of manual data collection — delivering real-time forecasts and precise resource allocation to keep pace with changing caseloads. |
Budget cuts reach deep in higher education
Finance leaders in higher education must contend with even sharper disruptions from deep funding cuts. With over $900 million in contracts erased and research entities dismantled, institutions project the loss of billions of dollars as finance leaders face erosion of funding for research, student aid, and operations.
State-level initiatives only amplify the strain, with over a dozen states implementing cuts to higher ed budgets. Finance teams in higher ed face combined federal and state reductions, forcing tough decisions on programs, staffing, and tuition. Advocates for cost-cutting highlight the shift toward more state and local control, emphasizing self-reliance, but for STEM and social sciences, these resource constraints threaten innovation pipelines. This leaves finance leaders with the critical question: How do we confidently forecast enrollment trends, align resources with priorities, and optimize amid uncertainty?
| Watch the video to learn how the University of Virginia School of Medicine cut many hours of manual work to achieve efficiency in expanding planning and forecast initiatives across the organization. |
Empowering finance leaders with better planning is imperative
In the current environment of mounting fiscal pressure, dynamic planning is essential for resolving these issues. Finance leaders need agile approaches that integrate real-time data, scenario modeling and analysis, and collaboration to simulate cuts, reallocate funds, and respond swiftly. For governments, this means aligning budgets with performance outcomes. For higher education, it means optimizing workforce and enrollment planning to protect long-term financial and operational stability.
Key benefits to look for in a planning solution include:
Plan with agility
Model “what-if” scenarios to quickly assess funding cuts or delays, evaluate options, and balance short-term constraints with long-term goals — protecting critical programs from disruption.
Forecast with accuracy
Support agile budgeting with real-time reforecasting and zero-based budgeting — reviewing every line of spend to ensure funds go where they matter most, even when grants are frozen or delayed.
Collaborate with efficiency
Break down silos with a single source of truth — connecting finance and operations data to improve visibility, identify gaps, optimize resources, and communicate insights with confidence.
These outcomes give finance leaders the insight and agility to safeguard fiscal health while delivering continued value to their communities.
Anaplan: A strategic ally for today’s funding challenges
Finance leaders need more than stopgap fixes — they need an advanced scenario planning and analysis platform that can absorb shocks, unify planning, and deliver clarity under pressure. Anaplan provides exactly that, helping teams move from reactive adjustments to proactive, strategic decisions. Our cloud-based platform unifies data, processes, and people, delivering dynamic tools for forecasting, scenario modeling, and optimization.
For government agencies, this means streamlining program budgeting, tracking performance, and aligning resources to meet efficiency mandates while maintaining accountability. In higher education, it means modeling workforce, enrollment, and funding scenarios to manage demographic shifts and rising operating pressures. And for finance teams across sectors, it means integrating cost, revenue, and workforce planning to surface trade-offs, anticipate risks, and respond with agility.
Unlike static spreadsheets, Anaplan’s AI-driven insights predict outcomes and guide proactive adjustments — empowering organizations to do more with less and drive lasting success.
Proven outcomes for finance-focused organizations
Anaplan’s impact is measurable, not theoretic — and the proof is in the results. Here are a few highlights from our customers:
Amid new efficiency mandates, the Government of Ontario shortened monthly reporting and forecasting by five days, saving significant man-hours and enabling rapid budget adjustments.
La Trobe University streamlined academic workforce planning, reducing administrative burdens by 30% and aligning staffing with student demand to maintain quality education.
A Texas university improved strategic planning amid uncertainties by cutting budgeting and forecasting cycles, boosting accuracy and reallocating resources towards institutional growth.
Seize this era of disruption for reinvention
Deep funding cuts are forcing finance leaders in government and higher education to rethink how they operate. With Anaplan, constraint becomes opportunity — turning fiscal challenges into drivers of efficiency, agility, and long-term innovation.
Now is the moment to act. Equip your finance teams with the tools to plan smarter, adapt faster, and lead through disruption.
