ERIC Number: ED347921
Record Type: RIE
Publication Date: 1991
Strategies and Consequences. Managing the Costs in Higher Education. ASHE-ERIC Higher Education Report No. 8.
Waggaman, John S.
This report focuses on the need for better management of higher education resources in view of the rising costs and changing revenues now confronting higher education institutions in the United States. Rising costs and changing revenues are reflected in stagnating faculty salaries, a decline in enrollment, rising administrative and insurance costs, and a decline in government student aid. In addition, endowment earnings for 1989-90 have declined to their lowest in a decade, and a decline in the rate of growth has allowed the rate of inflation or other factors to add greater pressures. No single successful method of managing costs and revenues has come forward to date. Reports concerning cost management strategies show that cost control efforts must first clarify the mission of the institution before setting priorities among the programs (educational, service, administrative, student, etc.). Break-even analysis-based data collected concerning revenue and cost trends and projections is shown to be a good start. Break-even analysis can then reveal areas from which funds could be obtained for enhancements and new programs. However, these management actions need to be in place before the next financial emergency or short-term ad hoc solutions will result. Contains over 160 references and an index. (GLR)
Descriptors: Budgeting, College Administration, Colleges, Cost Effectiveness, Costs, Educational Finance, Endowment Funds, Federal Aid, Finance Reform, Financial Exigency, Financial Needs, Financial Problems, Higher Education, Income, Inflation (Economics), Money Management, Resource Allocation, State Aid, Student Financial Aid, Universities
Publications Department, ASHE-ERIC Higher Education Reports, the George Washington University, One Dupont Circle, Suite 630, Washington, DC 20036-1182 (Single copy prices, including 4th class postage and handling: $17 regular; $12.75 for members of AERA, AAHE, AIR, and ASHE).
Publication Type: ERIC Publications
Education Level: N/A
Sponsor: Office of Educational Research and Improvement (ED), Washington, DC.
Authoring Institution: Association for the Study of Higher Education.; ERIC Clearinghouse on Higher Education, Washington, DC.; George Washington Univ., Washington, DC. School of Education and Human Development.