Colleges and universities, like corporations and other nonprofit organizations, are subject to periodic fluctuations in the economy and public support. Thus, the question is not whether they will confront financial problems but rather when and how. This article describes how institutions and boards can detect budgets in crisis, provides principles…

Facing severe budget reductions in 1991 despite institutional restructuring in response to budget cuts in the mid-80s, the Chancellor's Ad Hoc Budget Planning Group at the University of Alaska Fairbanks (UAF) proposes a process for fiscal change while aiming to retain institutional excellence. A first section states the current problem, reviews…

A discussion of rationale and techniques for protecting high-quality faculty and administrators during a period of reduced resources looks at the administrator's role as leader in quality control, finding an alternative to halted growth, identifying key administrative and academic personnel, defining shared goals, and finding needed funds. (MSE)

This publication presents case studies of 10 colleges and universities that developed creative approaches to resource allocation in order to confront the fiscal realities facing higher education. The case studies describe strategic review and planning efforts in times of fiscal austerity. They look at streamlining, but also explore permanent…

This booklet for trustees of institutions of higher education offers guidelines for strategic financial decisions required in light of the financial challenges higher education faces in the 1990s and beyond. "Strategic response" is defined as a decision that requires changing a major policy, program, or practice and involves some risk. Five…

This study attempts to understand educational priorities through an investigation of budget choices made by 46 Oregon school districts. Two-thirds of the sample districts did not experience stringent fiscal constraint; the remainder showed budget allocation patterns favoring instruction at the expense of administrative and other areas. Includes 20…

Although the major locus of mental health care in the United States is in community agencies, funding cutbacks threaten the services those agencies provide. To assist human service managers in developing guidelines and concrete action strategies for dealing with financial problems, 106 mental health professionals (e.g., agency directors, technical…

The experience of the University of Maryland system in dealing with statewide cuts in higher education financing is chronicled from 1988, focusing on political influences in the decision-making process, methods used to determine which programs would be cut, and responses to the decisions made. A comparison of four theater programs is offered as an…

Financial pressures are forcing the closure of some teaching hospitals and retrenchment using such strategies as development of ambulatory care and satellite facilities, merging with or acquiring other hospitals, and shortening patient hospital stays. A table lists revenues and profit margins for the 20 largest university-owned teaching hospitals.…

Using data which commences with the 1977-78 university fiscal year, and ending with the most current year for which information is available, the financial position of Ontario universities was assessed. The budgetary priority assigned to Ontario universities has declined steadily and substantially over the past 14 years despite a consistent growth…

A discussion of the changing economic climate for higher education looks at college costs in relation to other economic indicators, higher education costs in other countries, and hypothetical changes in spending and productivity in the next few decades. It is concluded that while the situation looks bleak, reconception of practices and…

Analytical techniques used in responding to a series of four substantial budget reductions imposed at Oregon State University are described. Over a 2-year period, each of the budget reductions demanded increasingly severe institutional action to meet the specified monetary targets. Different analytical techniques were required to meet the changing…

Retrenchment and reallocation processes at five public colleges and universities were studied: the University of Washington; University of Idaho; University of Michigan, Ann Arbor; Michigan State University; and Seattle Community College District. After an overview of institutional approaches to retrenchment and reallocation, the five individual…

As a consequence of declining enrollment and decreasing public school revenues, coupled with cost increases linked to state and federal mandated programs, collective bargaining obligations, rising energy costs, and a larger proportion of high cost (disadvantaged) students, administrators are faced with a compelling need for cutbacks in…

Small increases in research and development funding and the state of the economy pose serious challenges to research universities. It is unlikely that the financial pressures will moderate. Research universities will be challenged to downsize by restructuring resources without compromising their quality. (Author/MSE)