This brief explains why concerns over an impending "fiscal cliff" for public school districts as federal Elementary and Secondary School Emergency Relief funds near their expiration are misplaced. Due in part to federal pandemic aid, most state budgets are flush with cash, with record-high rainy-day funds, positioning them to absorb any…

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…

Every college and university experiences some form of financial hardship at one time or another. The financial problems plaguing local and state governments in recent years have been sufficient by themselves to create serious problems for institutions across the country. At the very least, an institution's financial difficulties can lead to the…

The intended audience for this primer includes new academic administrators and faculty members who seek involvement in campus governance and need a greater understanding of administrative processes, particularly those related to budgets and budgeting. After reading this publication, readers will have a better understanding of the budget process at…

This report, part of a project called "Redesigning Higher Education", argues that a set of fundamental changes underlies the growing number of critical difficulties faced by higher education in the United States. It finds the governance structures of American higher education inadequate to deal with a changing and increasingly cost-conscious…

Managing communities in economic decline takes special management skills, including knowledge of the change process, conflict resolution, organizational decision-making and leadership styles, power-base utilization, and management theory. Planners should consider a multiyear time frame, clear mission, prioritized core services, reallocated…

Top state and local leaders in Maryland announced a plan last February to lend Baltimore $42 million to help the city's financially troubled school system. The money was used by Baltimore school leaders to address what they called a cash-flow emergency for that school year. Money helped pay employees' salaries for the rest of that year, and helped…

Franklin and Marshall College (Pennsylvania) has used institutional mission, strategic planning, lessons learned from previous experience, and sound general management principles to guide reallocation of resources during a period of financial constraint. The objective was repositioning, not retrenchment, and the resulting academic program is…

Steps taken by Phillips Academy (Massachusetts) to contain costs during a serious deficit included short-term measures (increasing tuition and some fees, increasing enrollment, tightening administrative procedures, reduced personnel costs, and reducing programs) and long-term actions (early faculty retirement, increased retirement benefits,…

In recent years, Trenton State College (New Jersey) has focused its efforts on providing quality undergraduate programs to reverse an outmigration of college students from the state. When it faced severe financial difficulties, the students actively supported a fee increase designed to help the institution maintain quality education. (Author/MSE)

This paper addresses the problem of shaping new strategies in the face of current enrollment declines at many colleges and universities. It describes an approach that applies a long term planning model that can incorporate the short-term realities of lower enrollments and budget constraints with projections for new strategic initiatives. The paper…

Analysis of resource allocation in Michigan's higher education institutions indicates that spending is not driven by fixed costs, as often assumed. Most functions connected to the fundamental missions of the universities have been given lower priority than ancillary functions. Faculty compensation has lost ground overall, rather than leading…

This article discusses the impact of resource reallocation by colleges and universities using Virginia Commonwealth University as an example. Alternative areas for creative reallocations noted include increased productivity/efficiency, quality improvement, growth by substitution, targeted fund raising, planned savings, categorical funding, tuition…

This report reviews economic factors affecting the universities of Ontario, Canada. In 34 tables and 25 figures it provides comparative data with other Canadian and American institutions over the past 15 years. An executive summary reveals that operating grants from the Ontario government have been declining, and that many universities have been…

This articles examines litigation which has been generated as a result of fiscal cut-backs at institutions of higher education and looks at the rights and obligations of college and university administrators and students as well as possible future trends. A first section details the effects of budget reductions at California state institutions…