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The Insider's Guide to Working with UniversitiesPractical Insights for Board Members, Businesspeople, Entrepreneurs, Philanthropists, Alumni, Parents, and Administrators$
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James W. Dean and Deborah Y. Clarke

Print publication date: 2019

Print ISBN-13: 9781469653419

Published to North Carolina Scholarship Online: September 2020

DOI: 10.5149/northcarolina/9781469653419.001.0001

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Where Does College and University Funding Come From? Where Does It Go?

Where Does College and University Funding Come From? Where Does It Go?

(p.126) 8 Where Does College and University Funding Come From? Where Does It Go?
The Insider's Guide to Working with Universities

James W. Dean Jr.

Deborah Y. Clarke

University of North Carolina Press

It’s important to understand the finances of colleges and universities, budgeting, and sources and uses of funding. Costs at colleges and universities are increasing for a variety of reasons. Some costs involve facilities intended to attract talent, both in terms of faculty and students. Many costs involve people who do not teach, such as administrators. These individuals are doing work that is either required (government compliance) or expected (student mental health or career counseling). So, it is a stretch to sustain the argument that rising costs in higher education are singularly a function of unnecessary layers of administration. Many universities are using innovative approaches to cut costs and improve revenue streams to their institutions.

Keywords:   Budget, Higher education finance and operations, Facilitates and auxiliaries, Every tub on its own bottom, Responsibility Center Management, Fund accounting, Administrative bloat

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