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ERIC Number: ED424815
Record Type: Non-Journal
Publication Date: 1996
Pages: 40
Abstractor: N/A
Reference Count: N/A
New Yardsticks To Measure Financial Distress. New Pathways: Faculty Career and Employment for the 21st Century Working Paper Series, Inquiry #4.
Chabotar, Kent John; Honan, James P.
This paper, one in a series about the priorities of the professoriate, discusses issues of financial exigency and how they have an impact upon decisions regarding layoffs of tenured college faculty. The intent of the discussion is to encourage higher education institutions to clearly define the operational guidelines used when layoffs of tenured faculty become necessary as a result of financial emergencies. The paper discusses general principles for defining the criteria for financial exigency, giving specific yardsticks for three broad categories of financial condition: operating results (budget, cash flow, and student enrollment), net worth, and bond ratings. Two alternative accounting methods which can improve the comprehensiveness and credibility of the institution's financial data are presented. The first, global accounting, examines not only the institution's financial wealth but also its physical wealth; the second requires adoption of new accounting standards issued by the Financial Accounting Standards Board. Finally, the advantages and limitations of these alternative yardsticks are examined. (Contains 41 references.) (CH)
American Association for Higher Education, One Dupont Circle, Suite 360, Washington, DC 20036-1110; phone: 202-293-6440, ext. 11; fax: 202-293-0073 ($8.50 members, $10 nonmembers; subscription to all 14 papers: $120 members, $140 nonmembers).
Publication Type: Opinion Papers; Reports - Evaluative
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: American Association for the Advancement of Science, Washington, DC.