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ERIC Number: ED310650
Record Type: Non-Journal
Publication Date: 1981
Pages: 29
Abstractor: N/A
Reference Count: N/A
The Link between Planning and Budgeting. NCHEMS Monograph 1.
Chaffee, Ellen Earle
Administrators in higher education feel mounting pressure to link planning and budgeting as resources become more scarce and environments more uncertain. Instead of turning to theoretically prescribed planning/budgeting systems as solutions, microeconomics provides a means of thinking about individual consumption that helps shed light on the nature of the institution's financial problems. It illustrates the complexity of the problem and the inadequacies of prescriptive systems. It also suggests four characteristics of an optimal system that links planning and budgeting: (1) estimating change in income and prices, reducing uncertainty as much as possible; (2) allowing for disproportionate budget shifts; (3) monitoring and reflecting changes in preferences; and (4) managing conflicting political pressure. If the decisionmaking process for linking plans with budgets is to be successful, it must: encourage frequent communication between planners and decisionmakers; ensure that similar or related decisions are made simultaneously rather than sequentially; and monitor important changes relating to income, cost, and preference, as well as calling attention to these changes so that they receive special notice. A brief description of an organization's use of the optimal systems is provided. Contains 2 references. (Author/KM)
NCHEMS Publications, P.O. Drawer P, Boulder, CO 80302-9752 ($7.00).
Publication Type: Information Analyses
Education Level: N/A
Audience: Administrators; Researchers; Practitioners
Language: English
Sponsor: N/A
Authoring Institution: National Center for Higher Education Management Systems, Boulder, CO.