Higher Education Finance

The Corporation of Learning: Nonprofit Higher Education Takes Lessons from Business, by David L. Kirp

David L. Kirp
2019

This essay examines the ways in which nonprofit universities increasingly emulate businesses, focusing on two of the most direct forms of emulation: the creation of internal university markets at the University of Southern California through adoption of variants of resource center management (RCM) and the privatization of public higher education at the University of Virginia.

Executive Compensation at the University of California: An Alternative View, by Patricia A. Pelfrey

Patricia A. Pelfrey
2008

The 2005-6 executive compensation controversy at the University of California has been explained as the result of a massive breach of compliance with the University’s compensation policies by the Office of the President (UCOP). For more than a decade, the explanation goes, UCOP failed to comply with its own compensation policies, embodied in the 1992-93 Principles for Review of Executive Compensation, and engaged in a longstanding pattern of secrecy and policy violations. This paper argues that both assertions are wrong. It begins by analyzing the issues leading to adoption of the...

A Cautionary Analysis of a Billion Dollar Athletic Expenditure by John Cummins

John Cummins
2017

This paper is a description and analysis of the history of the renovation of Memorial Stadium and the building of the Barclay Simpson Student Athlete High Performance Center (SAHPC) on the Berkeley campus, showing how incremental changes over time result in a much riskier and financially less viable project than originally anticipated. It describes the decision making process, the role of various constituent groups including senior administrators and the UC Regents, faculty, community members and local and state governmental officials, donors and protesters. It includes the legal...

Thoughts on the History of University Systems in the U.S., by Robert Berdahl

Robert Berdahl
2014

Beginning in earnest in the 1950s, most state governments began a process of creating public university systems with a governing board and intended to coordinate and manage usually a range of institutional types and including a major public flagship university. By the late 1980s, enthusiasm for more centralized structures and state-wide “superboards” began to wane, in part because of the opposition of flagship campuses fearful of the “leveling” result they had seen in Wisconsin. The two decades after 1990 were marked both by austerity and limited growth and...

WHAT FUTURE FOR UK HIGHER EDUCATION?

Roger Brown
2010

Historically, the UK system has been one of the most successful in combining excellence with access. However the favorable conditions that British universities and colleges have enjoyed in recent years, associated in large part with the introduction of higher tuition fees in 2006, are coming to an end. British universities and colleges face a future of static or even falling local demand, increasing local and international competition, severe public and private expenditure constraints, increased regulation, and greater difficulties in aligning costs with income. In the first instance...

Privatization and Access: The Chilean Higher Education Experiment and its Discontents, by Cristina González and Liliana Pedraja

Cristina González
Liliana Pedraja
2015

President Barack Obama recently announced a proposal to eliminate tuition charges at community colleges so that everyone can easily complete the first two years of a university education. At the same time, the administration is creating new regulations to curb the worst abuses of for-profit universities. This suggests that the country has reached a turning point regarding access to higher education. There is a practical limit to privatization, and the countries that have privatized their higher education systems most aggressively, such is the case of the United States, are now...

A New Approach to Analyzing University Prestige and Internal Resource Allocation: Geometric Interpretations and Implications, by Yasumi Abe and Satoshi P. Watanabe

Yasumi Abe
Satoshi P. Watanabe
2012

The content of this paper is based solely on the original study reported in Abe and Watanabe (2012a) in which the authors develop a structured and innovative theory of optimal resource allocation and prestige maximization for an institution of higher education. Although the study provides a sound diagnostic framework and unambiguous results, the paper requires relatively advanced knowledge of mathematics and microeconomic theory, which presents an unattractive feature for students and researchers in academic disciplines that do not necessarily incorporate such analytical...

Can the Research Model Move Beyond its Dominant Patron? The Future of Support for Fundamental Research in US Universities, by Gwilym Croucher

Gwilym Croucher
2018

The United States has been the leader in fundamental research for the last seven decades. Fundamental research is overwhelming undertaken in or in conjunction with research-intensive universities, and since the 1950s they have depended on US Federal funding to make this possible. This support has been consistently championed by Congress, is popular across the political spectrum and enjoys long public backing, in no small part because there remains a widespread trust in the societal benefits it provides. Yet the US now faces a dilemma over the future of this national achievement and the...

Strategic Budgeting at Colleges and Universities by James A. Hyatt CSHE 3.20 (May 2020)

James A. Hyatt
2020

In recent years a number of colleges and universities have explored alternative strategies for developing operating budgets. In part this exploration was driven by the desire for transparency among various constituent groups and the need to tie budgeting to campus strategic planning. With the advent of declining federal and state support, along with changing student demand, the need for a more strategic approach to budgeting has gained momentum. This paper highlights the various budgetary approaches currently in use and provides examples of their application in a variety of university...