Higher Education Budget

Higher Education Budget
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Higher Education Budget
Introduction
Government funding and tuition fees are the major sources of revenue for higher education institutions. Financial crises usually lead to government cutbacks on the level of funding, making tuition fees the primary revenue source. When the government reduces the amount of expenditure on universities, it becomes the duty of the institutions to formulate situation-specific strategies to offset the level of cut in the government funds allocated for the sector. According to Hauptman (2015), the key performance indicators of the effectiveness of a solution module are the quality of output, access, and productivity of the institutions. This essay examines increasing enrollments while maintaining current tuition-fee levels as a resolution strategy. The paper discusses the approach highlighting the challenges in the implementation and the impact it would have on students, staff, and the faculty.
The choice of strategy
The global population is ever-increasing, which means that the numbers correspond to the number of high school graduates in need of a college or university enrollment. Increasing the number of intakes would ensure that the institution not increases its revenue base but also addresses the population issue by offering more opportunities for the bulging population. The primary considerations in the choice of the strategy are in its potential to increase access and improve productivity once implemented (Hauptman, 2015). The productivity of an institution increases its viability as a research hub making the strategy an enabler of academic progress. The budget-balancing approach covers both population and revenue issues in addition to improving the output, which makes it a potentially feasible solution to compensate government cuts on funding.
Challenges in the implementation
Hauptman (2015) noted that this approach is the least applied in the financial crisis solution effort, which can be attributed to the uncertainties of the plan to the quality. The proposal requires weighing several factors in its utilization, such as the holding capacity, marginal costs, and institutional and political matters (Hauptman, 2015). This means that implementing the strategy would require comparing the marginal costs and the tuition fees to gauge its economic applicability. The approach also requires alignment with the long-term objectives of the institution due to capacity issues. Increas...