ERIC Number: ED224441
Record Type: RIE
Publication Date: 1978-Feb
Reference Count: 0
The Financial Assessment of Colleges and Universities and Its Implication for State Policy. [Working] Papers in Education Finance, No. 4.
Minter, W. John
Important issues and technical problems related to assessing the financial health of colleges and universities are described, along with implications of financial health assessment for state policy-making. It is proposed that a distinction be made between the assessments of financial health and program success. Other issues that should be addressed are as follows: the risks faced by institutions that seem viable; whether the financial assessment is to involve aggregate institution or individual institution data; the need to consider public and private institutions separately; and whether the assessment will be long- or short-run. The main and most persistent technical problem for financial assessment of institutions is obtaining relevant and reliable financial data. Information is needed on the impact of law suits ad government regulations, the stability of revenues, the expenditure of current income for capital renewal and replacement, the institution's credit line, and its ability to handle debt service costs and to cover current liabilities in the short-run with cash and near cash. Research questions for the future may include: When is financial stress no longer a management problem but a public issue? When and how does public policy affect institutional financial health unequally so as to threaten financial distress? How can the uncertainty or certainty of revenues be identified and measured? What is the long-run capital funding outlook for higher education? (SW)
Publication Type: Information Analyses; Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: Education Commission of the States, Denver, CO. Education Finance Center.
Identifiers: Institutional Survival
Note: Paper presented at the Postsecondary Education Finance Conference (Denver, CO, November 16-18, 1977).