This case positions the reader as the superintendent of Jefferson City Public Schools (pseudonym). Like many urban school districts in the United States, Jefferson City faces a complex milieu of fiscal challenges attributed to inadequate state funding and declining student enrollment. Within this case, the superintendent must address the failing…

Under the conditions of the postindustrial society, the system of education is becoming a vital resource of economic development and a means of social adaptation, and it is increasingly obvious that financial problems are of paramount importance in educational policy. Budget appropriations for education, especially higher education (which has…

Even as they struggle to climb out of deep financial holes, states are facing lawsuits that contend they do not meet their constitutions' requirements to provide sufficient funding to districts and fail to provide resources for disadvantaged schools and student populations. This article reports on legal battles in Texas, Colorado, and elsewhere…

States and school districts are facing unprecedented financial pressure due to the continued poor performance of the United States's economy. Dramatic shortfalls in funding due to reduced tax collections were held off for 2 years thanks to federal stimulus funds, but with these revenues already consumed and little likelihood of more in the near…

Public universities are not for-profit businesses with an easy-to-understand bottom line: their financial reports are not designed to convey information to the public fully or to reflect all the costs of teaching and research. Financial reports do track every dollar in accordance with the accounting rules required by auditors, but they do not…

Social Security Disability Insurance (SSDI) is an essential lifeline for millions of Americans. Without it, many families would be in deep financial distress. SSDI is insurance that workers pay for through premiums deducted from their pay. In return, workers gain the right to monthly benefits if a disabling condition ends their capacity to earn a…

When "crisis" and "extramural funding" are mentioned, most academics think about problems such as the low percentage of proposals funded by federal agencies (now approaching single digits in many fields) or inadequate indirect-cost recovery rates that fail to reimburse universities for all costs of research. These are great problems draining…

When people talk about the future of public universities, they are usually talking about the flagship state universities. Flagship state universities have greatly increased expenditures in the past decade. The goal of the flagship institutions has been to compete with the best private universities, based on the assumptions that state funds will be…

On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act, better known as the economic stimulus plan. Congress and the Obama Administration acted in the wake of an economic crisis spurred by a deepening recession. Among its aims in passing the ARRA, Congress moved to help states and local jurisdictions reduce…

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…

An Arizona district funded staff salary raises by developing some workable budget-reduction strategies. The process emphasized garnering board and community support and collaborating with employee groups. A list of 67 ideas for generating revenues or reallocating program dollars represented $9 million in savings. A condensed list saving $3 million…

Illinois currently permits districts to finance repairs and construction related to children's health, life, or safety through a modest "backdoor" referendum rate tied to property values. These repairs are ameliorative but not preventative. This article recommends a strategic capital preservation plan that sets aside funds for use in…

Identifies possible sources of supplemental income to finance Nigerian universities, including households and commercial and industrial firms. A consumption tax imposed on certain goods and services would generate needed funds. Also, because firms employ university graduates to earn higher profits, their turnover income should be taxed to support…

By terminating 26 degree programs, 3 departments, and 3 schools and colleges, the State University of New York at Albany generated a pool of resource for reallocation to programs with greater need and priority. The difficulties of accomplishing this and the lessons for other campuses are described. (Author/MLW)

Crucial aspects of university finances in India are reviewed, including the pattern of flow of resources into the university system and the pattern of allocation of resources by the university between its different functions and faculties. (Author/MLW)