Public higher education has relied on a variety of funding structures since the 1950s. Layzell (2007) describes five general approaches in contemporary use in the United States. "Incremental (baseline) budgeting" uses the current year budget as the base and then makes adjustments to account for expected changes in activities, revenues, and…

Over the past thirty years, considerable research has been conducted to understand the issues that affect a student's choice of a higher education institution. Past research has focused on understanding the phases of the decision process and the personal, financial, and environmental factors that influence institutional choice. Many of these…

This chapter introduces the key economic concepts, models, and methods that can help inform institutional research in higher education. (Contains 1 table and 9 figures.)

A new strategic plan, an additional one hundred faculty members, a new financial model, an incentive compensation plan, a new $200 million research building, closing one professional school and repositioning assets to help another, redirecting net revenues from two parking garages, and a building renewal and replacement plan-all are outcomes of a…

Guided by clear planning principles, and under the custodial care of a governance council, the model strategic planning process at Carroll Community College is evidence-driven, connected to budget decisions, and continuously refreshed.

Reviews the multifaceted challenges facing public universities and offers insights into the potential educational consequences of overzealous revenue-based institutional management. It is vital not to lose sight of the essential elements of higher education in a concentration on finance. (SLD)

Compared the willingness of states to invest in higher education and institutional sectors by studying state expenditures and fiscal tax effort. Findings show significant disparities in the ways states finance higher education and its sectors. Poorer states tend to exert more tax effort in public higher education, while wealthier states are less…

Two senior administrators at the University of Delaware discuss the types of cost data that are ultimately useful for decision making and policy development. Describes the data collection format and provides examples of departmental workload verification data and departmental expenditures by object and function. Explains use of comparative…

Effective college information-technology (IT) planning must be integrated into institutional planning, mission, and goals. Topics discussed include key constructs for ensuring that the acquisition and implementation of IT furthers the institution's strategic plan, an inclusive governance structure and facility planning approach, funding…

Performance funding for public colleges is attractive to state policymakers but volatile and difficult to implement. It requires levels of collaboration, cooperation, patience, and persistence unusual in state government and a commitment to institutional goals, performance standards, and coordinated activities rare in academic governance. However,…

Performance funding reemerged in the 1990s as a state budgetary method for complementing or replacing other funding strategies for public colleges to better promote and respond to specific policy concerns. It has the potential to correct some of the apparent flaws in traditional budgeting but is easier to define than to put into operation. (MSE)

Summaries of the design, planning, and implementation of performance funding programs in Arkansas, Colorado, Florida, Kentucky, Louisiana, Minnesota, Missouri, Ohio, South Carolina, Tennessee, and Washington reveal the challenges and opportunities of this reform approach. Performance measures and objectives and the history of the program in each…

Performance indicators used for state funding, past and present, of public colleges in Arkansas, Colorado, Florida, Kentucky, Louisiana, Minnesota, Missouri, Ohio, South Carolina, Tennessee, and Washington are reviewed to explore their intent and implications and to provide information for policymakers considering introducing or revising…

Although selecting goals and indicators is the most challenging task of performance funding, implementation requires development of other critical elements: success criteria to measure institutional performance; indicator weights for percent of funding allocated to each indicator; an allocation method for setting the relationship between…

A 1996 survey of state policymakers and public college representatives in states with performance funding (Arkansas, Colorado, Florida, Kentucky, Minnesota, Missouri, Ohio, South Carolina, Tennessee) is presented. Although differences exist across states in a number of areas, findings challenge the assumption of an irreconcilable gap between…