Moving Beyond Incremental Budgeting
While most colleges and universities saw stable growth over the last several decades, many now face significant downward pressure on revenue. By one estimate, nearly one in ten institutions face significant financial stress from declining revenue or poor operating performance.
With limited potential for significant new revenue growth, academic and business leaders agree that spending on new initiatives must come from a reallocation of existing resources. However, actually reallocating resources from one area of campus to another remains difficult. In particular, the traditional model of incremental budgeting, which served institutions well in times of growth, is illsuited to meet today’s demands for smarter resource allocation.
Academic Affairs, Budgeting, Administration and Finance, Budget Models and Cost Allocations, Debt Management, Facilities and Operations, Space Utilization, Revenue Enhancement, Tuition and Fees, Library, Research Enterprise, Strategic Planning
Education Advisory Board, "Optimizing Institutional Budget Models: Strategic Lessons for Aligning Incentives and Improving Financial Performance" (2014). Institutional Priorities 2014-2015. 55.