Higher Education Funding Prioritization
Subject: Education

Order Instructions – Please read thoroughly!!
Book
Weisbrod, B. A., Ballou, J. P., & Asch, E. D. (2010). Mission and money: Understanding the university. Cambridge Cambridge University Press. ISBN: 9780521735742

Chapters 9 and 18

Assignment:
College and universities are expected to manage resources and operations within an allotted budget. While dependence on revenue sources differ among institutional types, leaders of all academic institutions must appreciate the broad economics of higher education and the markets within which they compete. Budgeting in higher education has many universal characteristics. Generally, the process is applicable to both the public and private sectors. In the macro-perspective, the actors in the process, the roles they play, the timing of their participation, and the sequence of events in the budget cycle are remarkably similar from one institution to another. The circumstances provide a framework for budgetary behavior. Any differences in the basic approach to higher education budgeting and finance reflect distinctions in institutional character, institutional, administrative sophistication, faculty governance structures and processes. Of additionally consideration is the degree of centralization for decision-making authority, trust among administrators, faculty, and students as well as the openness of the budgetary process.

1. View the presentation, Future Financing and the Redesign of Higher Education

Educational leaders have the responsibility to ensure that funding is adequate in order to achieve the highest caliber programs for students. By understanding budgetary practices, leaders make great strides toward effective organizational management. An annual budget must be developed and funds secured through different federal, state, and local sources. The funds must be matched to the budget and any shortfalls must be met by reductions in spending. That may mean that programs are cut or that other cost-cutting measures are taken to ensure that the allocated funds are adequate to cover required programs, salaries, and facilities maintenance. The budget involves devising a financial plan that includes provisions for planning, receiving and spending funds, and evaluating results.

In order to accomplish these tasks, budgeting is a continuous process requiring special attention to:
1. Safety – safety is critical at all levels. With recent school violence, and violence prevention programs, concerns over school safety are at an all time high.
2. Staffing – staffing is one of the business aspects of the school community that is impacted by budgeting shortfalls. Staffing changes occur as a result of policy changes at all levels of education.
3. Maintenance – maintenance is an ongoing concern in schools that is often waitlisted for more pressing needs. However, without basic maintenance services, school facilities degrade and become more pressing problems such as safety violations.
4. Academic Programs – as based on student and marketplace demand, college vision and mission, accreditation requirements
5. Return on Investment—some activities, if provided start-up funding, can, in a reasonably short time, be expected to recoup the investment made in them.
6. Faculty and University development – as based on advancement of the institution’s vision and mission and individual development needs of faculty members.
Main task:
There are many costs associated with running higher education institutions. Most often, colleges have many more wants than they can afford to fund. Such costs include faculty and administration salary and benefits, physical plant maintenance, association and accreditation memberships, compliance, legal matters, etc.
2. Identify an institution of your choice and develop a list of factors that should be considered in determining which will and which will not be funded. For this purpose, use information from one of these sources: http://www.fau.edu/budget/files/2011_Operating_Budget.pdf or http://www.budget.psu.edu/BudgetPresentation/2013-14/default.aspx#exhibits

3. use the criteria listed above for judging programs and provide a prioritized list of no fewer than five activities for funding, and determine where the funding might come from (a major gift, the general operating fund, capital funding, auxiliary services).

4. Then: Determine What Can Be Funded
Develop a Power Point Presentation in which you justify your decision as to which will be funded in the new budget as if this were to be presented to higher level administration at a higher education institution. Be sure to relate the choices made to the mission of the institution, and the vision it projects for its program.

 
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