The Obama Administration is currently using more than $4 billion in federal stimulus funds in a controversial program called Race to The Top in an attempt to improve student achievement in public schools throughout the country. However, this study analyzes a different approach to spending stimulus funds from the American Recovery and Reinvestment…

In this paper the author explores how colleges whose primary mission is undergraduate education can strategically allocate resources in a way that reduces costs and prioritizes teaching and learning. He starts from a provocative thought-experiment--what would it cost to educate undergraduates at a hypothetical college built from scratch?--and uses…

Institutional performance was a topic given considerable attention by the Commission on the Future of Higher Education. Florida's Community College System responded to the challenge by committing to increase performance-based funding allocations from less than 2% to 5% of total state appropriations. Results of the analysis indicated that…

An alternative system for allocating resources within British universities is proposed which involves (1) a budget for each recognizable academic unit, the size related to the unit's student load by a published formula, and (2) the devolution to units of responsibility for spending their budget on different items. (JT)

There has developed moderate discussion in European higher education about the use of performance indicators for both accountability and evaluation purposes. This paper begins by summarizing governmental expectations, institutional objections, and several of the controversies surrounding performance measures. We then report on using performance…

Instead of collegiate priorities determining resource allocation, the resource allocation process can often shape the priorities. Current approaches are reviewed with focus on (1) how different approaches to setting priorities accommodate lack of consensus on campus; (2) incentives incorporated into resource allocation approaches; and (3)…

The search for more flexibility in financial management of public universities demands adjustments in budgeting strategies. International studies on this topic recommend wider financial autonomy for management units, the use of budgeting models based on performance, the implementation of formula systems for the determination of financial needs of…

New Jersey abandoned formula funding of higher education in favor of incentive funding combined with base budgeting. State institutions receive basic operating funds and compete for extra monies by planning initiatives for problems on which state leaders want more action. Incentive funding has cost little and improved quality noticeably. (MSE)

Recommendations that would improve the quality of undergraduate education and that impinge on the budget at the state and institutional levels are examined. The current role of the budget in promoting student learning and development and how budget policies can be changed to foster higher quality learning are discussed. (MLW)

The role of institutional budgeting strategies in promoting institutional change is examined, looking specifically at two budget components (general-purpose lump sums and earmarked funds). Experiences of the University of Utrecht (Netherlands) with internal competition for reduced funds as a means for stimulating change are discussed. (MSE)

The conditions facing postsecondary education during the 1980s, it is suggested, call for institutional planning styles that are comprehensive, systematic, public, regular, and expansive. The formal democratic style is described as a comprehensive planning process that requires all departments to submit their plans to the college. (Author/MLW)

Organization and management of financial resources in the University of Maryland medical school's department of medicine are described, including development of realistic budgets, accounting for sources of income and expenses, uses of subsidies and incentives for more efficient administration, financial reporting, annual administrative retreat,…

Implementing an incentives-based budget system at a large public research university significantly redirected internal funds while producing notable organizational and financial surprises. For example, units did not increase their "hoarding" of students, contrary to some expectations. The findings point to several issues for further…

Experiences of five states that have created incentives for the effective management of higher education or that have eliminated disincentives are examined. After considering the effect of state budgetary controls and regulations on college operations, methods used to determine levels of state support and to allocate state funds are addressed. In…

Three types of state-level roles in higher education program review as it relates to budgeting are outlined, ideas from the literature about the efficacy of program budgeting are summarized, and North Carolina's use of state-level reviews for program improvement and budgeting is described. (MSE)