In this paper, we employ Punctuated Equilibrium Theory to consider institutions' shifting goals, priorities, and constraints, and to explore the nature of change at colleges and universities in the United States. By exploiting annual changes in institutional budget decisions over a 29-year period, we seek to understand the extent to which…

Extant research neglects to examine how policymakers make decisions regarding funding allocations to higher education institutions. This case study analyzed the policy process surrounding the development of one model for funding higher education in Colorado. The study is anchored in a theory of policy design, which considers how groups targeted by…

Our fixed-effects panel data analysis of state spending on higher education fills a near void of studies examining capital expenditures on higher education. In our study, we found that political characteristics (e.g., interest group activity, organizational structure, and formal powers) largely account for differences between general fund and…

In this article, we explore how partisanship affects state higher education policy priorities and expenditures. We assume that party coalitions are heterogeneous and policy preferences/priorities differ via mediating factors. We find that Democratic Party strength positively affects state funding for higher education but that the effect diminishes…

This study focuses on the differences in college student dropout behavior among racial/ethnic groups. We employ event history methods and data from the Beginning Postsecondary Students (BPS) and National Postsecondary Student Aid Study (NPSAS) surveys to investigate how financial aid may differentially influence dropout risks among these student…

Public higher education's changing financial environment is well documented. Facing shrinking budgets, competing priorities, public resistance to increasing state levies, and prohibitions on deficit spending, state legislators more and more often find themselves in the unenviable position of debating the relative essentiality of state services,…

A systematic procedure is described whereby private colleges may establish long-range objectives and allocate their limited resources to programs that are most productive in fulfilling these objectives. Results of the actual application of this system to a private college are reported. (Editor)

The concept of formula funding, the events leading to its development, the forces currently acting on formula funding, and anticipated trends are examined. All indications are that formula budgeting will continue and intensify in use. Certain needed refinements are suggested that stress flexibility. (Editor/LBH)

Discusses the theory of administrative cost accounting known as "internal pricing" for the purpose of describing how it is currently affecting the operations of academic departments. (Author)

Analysis of the relationship between performance data and changes in faculty size of 40 departments in a College of Arts and Sciences during a time of financial stress found that the rational choice model was applied to decision making. There was a systematic relationship between objective, evaluative data and policy decisions. (MLW)

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)

Institutions of higher education encounter greater problems than business in opening up for discussion the inner workings of the system designed to allocate resources and evaluate performance. (Editor/IR)

In order to make rational budgetary decisions, higher educational institutions require information on the impact of inflation on their operations. A simple and easily maintainable model from which price indices for a particular institution can be constructed is described. (Author/LBH)

State case studies of resource management for higher education are examined to develop a framework for use at all levels in analyzing current state finance policy. A resource management approach that can be used in several ways in the review and planning process is outlined. (MSE)