ABSTRACT

This chapter is intended to equip administrators with resources to meet these objectives. It emphasizes action-oriented administration within the context of diminishing resources and increasing expectations. It also emphasizes a democratization of the planning and budget process to give all participants and stakeholders a voice in critical decisions. The effective management of postsecondary institutions depends strongly on aligning resources with objectives. The unique characteristics of postsecondary schools present distinct challenges for budget managers. No single budget principle is more important than the philosophy characterized by the phrase "Money follows mission". In a manner similar to tax appropriations, private schools must strike a balance between tuition payments and tuition discounts against the published rate. Promoting knowledge of the institution's mission and budget processes should be a core part of institutional culture. Zero-based budgeting requires that all funds in the annual budget be zeroed out at year's end.