ABSTRACT
A college or university’s budget is a philosophical statement of an institution’s priorities. The resources a president or board of trustees opts to allocate to a particular activity or personnel signals its worth to the institutional mission and effort. Therefore, following where the money comes from – and where the money goes – is essential to understanding how higher education institutions work. It is a relatively rational system of decision-making which at the same time is best understood in terms of customs, idiosyncratic practices, and the complexities of a largely decentralized system of decision-making. One historic axiom for college budgets is that “every tub floats on its own bottom.” But that traditional principle calls for careful consideration and explanation to see if it truly guides the academic ship in its financially choppy waters.
