Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Economics of Higher Education
Why is budget development such an important aspect of policy-making and why is the process sometimes described as an "awkward" one?
Budget development is such an important aspect of policy-making because it allows administrators to devote funds to the programs that they find most important, in addition to dictating policy, as colleges that run out of funding cannot execute what remains unfunded. Budgeting is one way that colleges can combat the rise of high tuition prices. Many universities have turned to cost-cutting strategies in order to respond to these higher tuition rates. Colleges use short-term cost deferential strategies to make emergency reductions in spending, strategic cost reduction to try to cut costs while keeping all programs, and permanent cost restructuring in order to eliminate programs in favor of permanent cost-reductions (Wellman 23-24). The varied types of cost reduction strategies and the decision to cut programs in order to keep costs low can make this process awkward. Further, the process is also made awkward by the fact that institutes of higher education are not for-profit businesses (Winston), so helping them create budgets in a traditional way is flawed. Also, colleges must create budgets and learn how to disperse money in a way that is fitting to their academic community (Kane and Rouse). All of these factors make the process difficult.
2. When there are fewer financial resources to allocate, why do budget processes often become both more laborious and contentious?
According to Johnstone, funding a university is complex not only because of the "multiple sources of revenue," but also because of "the relationship between funding and quality" (1). Thus, when there are fewer financial resources to allocate, the school runs the risk of providing poorer programs -- or providing poorer quality. At this time, administrators must make difficult decisions, like what programs get cut or if students will have to pay more tuition. Because "there has been a considerable increase in costs born by students and parents, mainly through higher tuitions" (Winston 10) this can be a contentious process as well, as administrators are, effectively, excluding students who cannot get a large amount of federal support.
Auto loans, credit card loans, and mortgages have all declined. Another issue plaguing higher education is how to curtail of abates the influence of these rising costs on the lives of their students. Many of these costs are indirectly correlated to tuition and are therefore uncontrollable in a market subsidized by government. However, many issues are directly related to the tuition, and are therefore controllable. These include student demographics, institution
Higher Education Existing Funding Infrastructure Education financing in Florida is at a crisis point. The current system for K-12 financing in Florida features a combination of state and local funds. Approximately $7.75 billion is contributed by the state. This comes from general revenues, which puts this financing at risk should there be significant changes to state revenue levels. There have been stories in the news media in the past year where different
Higher Education Investment in Higher Education The literacy rate is one of the important indicators of a developed country hence governments focus on enhancing its infrastructure. There are many challenges to promote higher education as demographic and social factors act as barriers to admission for many candidates. The effect of these factors should be explored so that the negative outcomes can be controlled. Investment in Higher Education Formal education system is considered as one
Congress did more than just reauthorize the Act, though. It also required that state agencies be established that would be able to handle some of the work that accrediting agencies were once expected to do on their own (Crow, 2009). By doing that, it was assumed accreditation would be easy to attain for deserving schools, and the value of being accredited would be seen once again (Crow, 2009). It became
Medina's arguments very much echo the sentiments of Kwiek (2001). These two authors have argued against the economic forces in a globalized economy getting in the way of educational institutions. Such is the case because it is believed that market forces strip away the autonomy and nation-state ideals propagated in the university. This in turn results to the subordination of education to market forces. Consequently, subordination of education to the
Higher Education Leadership Purpose Statement The purpose of higher education leadership is to ensure organizational learning through the induction of most qualified men and women in educational institutions, at the same time keeping pace with rapidly changing educational standards by applying modern teaching and research methodologies, to embrace flexibility and creativity in virtual learning of diversified workforce across the globe. Higher education leadership aims to win the commitment and loyalty of