ERIC Number: ED329145
Record Type: RIE
Publication Date: 1989-Oct
Reference Count: N/A
The Economic Outlook and What It Means for Colleges and Universities.
Anderson, Richard E.; Massy, William F.
Capital Ideas, v4 n3 Oct 1989
This issue of Capital Ideas reproduces, in an abridged form, the first chapter of a new book titled, "Financial Planning Under Economic Uncertainty", in the series, "New Directions for Higher Education." The chapter reviews the macroeconomic environment at the start of the 1990s, with particular focus on the problems facing policymakers. Sections examine: the economic environment in brief; the most likely scenario (generally favorable conditions with moderate growth and inflation) and its effects on higher education; alternative scenarios (both recession and inflation) and possible triggers of each. Implications for colleges and universities of these scenarios are discussed and strategies are recommended under the following categories: (1) current operations; (2) capital for facilities and equipment; (3) investments; and (4) public image. Overall, since the macroeconomic environment is likely to be extremely volatile for the coming decade, colleges and universities are encouraged to conserve capital for use on facilities and equipment and to provide investment return for future operating subsidies. They are discouraged from dissipating capital through current operating deficits however strong immediate program claims might be. They are also discouraged from investments which do not take into account the possibility of a sharp recession or sustained inflation. Nine references. (DB)
Descriptors: College Planning, Economic Factors, Educational Finance, Educational Policy, Financial Policy, Higher Education, Investment, Long Range Planning, Trend Analysis
Capital Ideas, Teachers College, Columbia University, Box 38, 525 West 120th St., New York, NY 10027 ($1.00).
Publication Type: Collected Works - Serials
Education Level: N/A
Audience: Policymakers; Administrators; Practitioners
Authoring Institution: Forum for College Financing.
Identifiers: Economic Trends
Note: A project of the National Center for Postsecondary Governance and Finance.