ERIC Number: ED366242
Record Type: Non-Journal
Publication Date: 1993-Aug
Reference Count: N/A
Using Fiscal Policy To Achieve State Education Goals. State Policy and College Learning.
Folger, John; Jones, Dennis P.
In view of increasing financial pressures, this paper argues that a new approach to fiscal policy and to the structure of the financial relationship between state government and institutions of higher education is needed. A proposed three-part budget would include the following: (1) a base or core lump-sum budget managed by higher education institutions, subject to accountability through regular assessment of progress toward institutional goals; (2) a capital budget to cover new buildings and other major asset acquisition; (3) a special-purpose component of 5 to 10 percent of the base allocated to further the state's higher education agenda. This special-purpose budget would be connected to state objectives, and an assessment of progress toward objectives would be built into the process. Such a special-purpose component could take the form of block grants with guidelines; of initiative funding in a competitive peer-reviewed process; of incentive funding as a grant awarded based on demonstrated progress toward a state goal; or of student funding through scholarship and work-study grants. The report reviews strengths and weaknesses of each funding mechanism in relation to the kinds of activities the state seeks in colleges and universities. The paper also describes typical institutional and state-level responses and argues that these are often deleterious to state priorities for higher education. It proposes an alternative approach which would ensure that the state's interests and educational priorities are reflected in the resource allocation process. Appendixes describe programs in New Jersey, Ohio, and Tennessee. (JB)
Descriptors: Accountability, Budgeting, Educational Finance, Educational Objectives, Finance Reform, Financial Policy, Government School Relationship, Higher Education, Resource Allocation, State Aid, State Colleges, State Government, State School District Relationship, Statewide Planning
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Publication Type: Guides - Non-Classroom
Education Level: N/A
Sponsor: Pew Charitable Trusts, Philadelphia, PA.
Authoring Institution: Education Commission of the States, Denver, CO.
Identifiers - Location: New Jersey; Ohio; Tennessee