Economics of Higher Education Why Thesis

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Also, colleges must create budgets and learn how to disperse money in a way that is fitting to their academic community (Kane and Rouse). All of these factors make the process difficult.

2. When there are fewer financial resources to allocate, why do budget processes often become both more laborious and contentious?

According to Johnstone, funding a university is complex not only because of the "multiple sources of revenue," but also because of "the relationship between funding and quality" (1). Thus, when there are fewer financial resources to allocate, the school runs the risk of providing poorer programs -- or providing poorer quality.

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At this time, administrators must make difficult decisions, like what programs get cut or if students will have to pay more tuition. Because "there has been a considerable increase in costs born by students and parents, mainly through higher tuitions" (Winston 10) this can be a contentious process as well, as administrators are, effectively, excluding students who cannot get a large amount….....

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