General Higher Education Concepts
This institutional type's purpose is to produce budget surpluses, which it distributes to shareholders.
What is a for-profit institution?
The college's core budget inclusive of all revenues & expenses.
What is the operating budget?
Voluntary support provided to a college.
What is a donation or gift?
Non-fixed expenditures
What are variable expenditures?
Self-supporting enterprises like residence halls & dining facilities are examples.
What are auxiliary services?
Revenues > expenditures.
What is profit?
A university's accumulated wealth.
What is endowment?
The primary source of revenue for private institutions.
What are tuition and fees?
Major sources of expenditures for higher education institutions (List 3)
What are personnel, instruction, research, public service, academic support, maintenance & operations, & student services?
This grouping schema recognizes different sets of organizations' distinctive mission foci.
What is the Carnegie Classification?
Everything else someone could have done with the resources (e.g., money & time) they invested in a given choice.
What is the opportunity cost?
Funds only usable for a designated purpose.
What are restricted funds?
Major sources of revenue for higher education institutions (List 2)
What are tuition/fees, state/local appropriations, endowment income, & research grants/contracts?
They're basically “price discounts” as they represent forsworn revenue (via reduced tuition).
What are (institutional) scholarships?
The institutional type with typically the smallest budget & the lowest expenditures per student.
What are community colleges?
This concept reflects that higher education provides various benefits &, thus, secures funding from many sources.
What is cost-sharing?
Everything given up to pursue something else.
What are costs?
The two main types of federal funding for higher education.
What are financial aid & research grants/contracts?
Salaries and wages, fringe benefits, & employer contributions to taxes represent this set of expenditures.
What are personnel expenditures?
What a student pays after all student financial aid & other price discounts have been applied.
What is net price?
Dependence upon skilled labor, low productivity growth, and capital-skill complementarity characterize this phenomenon.
The difference between what a college spends to operate & the amount of said cost covered by tuition revenue.
What is the subsidy?
Tuition revenues - institutional financial aid
What is net tuition revenue?
Money exchanged for a good or service. In higher education, it often refers to the portion of costs that students pay.
What is price (i.e., net tuition)?
The gap between expected earnings for college graduates & non-graduates.
What is the wage premium?