Strategic planning enables colleges to direct discretionary dollars into high-impact areas that can enhance critical core activities, improving output. When the institution can disinvest financial resources in weak or noncritical core areas and redirect them through careful budgeting, it improves its chances for success. (MSE)

This article describes activity-based costing (ABC) and how this tool may help management understand the costs of major activities and identify possible alternatives. Also discussed are the traditional costing systems used by higher education and ways of applying ABC to higher education. (GLR)

Discusses scenario planning, a method for evaluating capital investments by weighing their potential benefit to the future of the institution. (EV)

A random sample of 300 financial officers at public and independent 4-year and public 2-year institutions reveal their projected fiscal 1992 year-end expenditures and 1992-93 budget allocations. Summarized in chart form are the findings on changes in growth rates on salary and wage allocations for a variety of institutional functions. (GLR)

Findings of a survey of 300 financial officers at public and independent 4-year and 2-year institutions of higher education concerning budget allocation trends since 1987 are presented in narrative and 24 charts. The survey documents changes in growth rates in allocations by various categories and distribution of expenditures by institution type.…

Five strategies for realistic deficit management in the college or university during fiscal stress are examined: (1) comprehensive strategic and operational budget planning; (2) examination of tenure-stream faculty positions; (3) program review and evaluation; (4) self-supporting auxiliary and service units; and (5) increased flexibility in use of…

Prairie View A&M University's (Texas) experiences are offered as lessons in how to establish institutional priorities and procedures for retrenchment. Thirty-one specific cost-reduction strategies and policy changes are presented, and the evolution of a formal, institutionalized budget process, nonexistent until fiscal year 1991, is described.…

Information on the security operations of public four-year colleges and universities is examined, and the case of the University of Tennessee, Chattanooga (UTC), which saved $66,000 a year from the security unit's operational budget, is noted. Of 561 questionnaires sent to public institutions regarding the general operation of security units,…

Specific roles faculty members can play in their institution's budget processes are discussed, and the general ends served by budgets are identified. Each of the dimensions of institutional character (e.g., size, mission) determines the ways in which participants in budgeting will interact. For example, broader faculty participation in budgeting…

Outlines some of the issues and practices currently shared by higher education and health care industries, including public dissent, declining government support, shifting of the distribution of expenses, applicability of revenue-based budgeting, debate over cost and quality, merger trends, changing traditions, concern for development of a…