ERIC Number: ED093236
Record Type: RIE
Publication Date: 1974-Jul-10
Pages: 17
Abstractor: N/A
ISBN: N/A
ISSN: N/A
EISSN: N/A
Measuring Financial Distress.
Jenny, Hans
How does one tell which higher education institutions should go out of business? The National Commission on the Financing of Post-Secondary Education took the view that financial distress was only in part a financial problem. An essential key to the problem is a determination of the financial impact on educational objectives. Institutional survival is inextricably linked to institutional policy, and if institutional policy does not somehow mesh into the overall educational scheme of things--which includes public policy concerns and needs--institutional survival will sooner or later come into question, or at least into difficulties. The Commission's major recommendation on the subject was that there be developed a set of national standard indicators to determine the relative financial health of the different types of postsecondary educational institutions. There should be a method for reporting budget information programmatically so that one might observe what happens to specific programs when money flows change; furthermore, there should be ways to determine how specific educational activities affect educational outcomes so that there will be some evidence on how much disappearing monies weaken the educational effort. It is quite appropriate for the federal government to play the role of stabilizer and even the role of subsidizer to aid higher education institutions. The appendix includes charts related to the text. (Author/PG)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: N/A
Sponsor: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.
Grant or Contract Numbers: N/A
Note: Speech delivered at the annual meeting of the National Association of College and University Business Officers (Boston, Massachusetts, July 10-12, 1974)