Budgeting at the institutional level: responding to internal pressures and external opportunities

Ben Jongbloed, Han van der Knoop

    Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

    Abstract

    Just like any organisation in a private enterprise economy, universities and other institutions of higher education have to obtain a certain share of the GDP in order to survive. By exchanging educational and research services for resources from the rest of the community, these organisations earn their income. This income takes on several forms: block grants from the government, specific government grants, revenues from investments, sale of educational and research services, and income from charity (OECD 1990: 10). Here a first (superficial) comparison with profit-oriented business organisations would end, since in most countries income earned directly from the market does not play a dominant role in university funding. Most higher education institutions depend substantially upon contributions from public funds, that is, upon the share of tax revenues allocated to them by government. One could maintain, however, that universities and colleges in this respect compete for public money with each other, and with other fields of expenditure, and operate, too, upon a market in which representatives of the general public spend funds on academic services. Hence, universities and colleges are in a position that does not differ substantially from that of autonomous business organisations in a private enterprise economy. To secure their budget they have to compete and react to claims and conditions laid upon them, not just by government.
    Original languageEnglish
    Title of host publicationFrom the Eye of the Storm
    Subtitle of host publicationHigher Education's Changing Institutions
    EditorsBen Jongbloed, Peter Maassen, Guy Neave
    Place of PublicationDordrecht
    PublisherKluwer Academic Publishers
    Pages141-164
    Number of pages24
    ISBN (Electronic)978-94-015-9263-5
    ISBN (Print)978-90-481-5355-8
    DOIs
    Publication statusPublished - 1999

    Fingerprint

    private enterprise
    university
    income
    grant
    earned income
    economy
    tax revenue
    market
    sale
    OECD
    revenue
    education
    profit
    budget
    expenditures
    money
    funding
    resources
    community

    Keywords

    • Resource allocation
    • Responsibility centre budgeting
    • Management control

    Cite this

    Jongbloed, B., & van der Knoop, H. (1999). Budgeting at the institutional level: responding to internal pressures and external opportunities. In B. Jongbloed, P. Maassen, & G. Neave (Eds.), From the Eye of the Storm: Higher Education's Changing Institutions (pp. 141-164). Dordrecht: Kluwer Academic Publishers. https://doi.org/10.1007/978-94-015-9263-5_7
    Jongbloed, Ben ; van der Knoop, Han. / Budgeting at the institutional level : responding to internal pressures and external opportunities. From the Eye of the Storm: Higher Education's Changing Institutions. editor / Ben Jongbloed ; Peter Maassen ; Guy Neave. Dordrecht : Kluwer Academic Publishers, 1999. pp. 141-164
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    Jongbloed, B & van der Knoop, H 1999, Budgeting at the institutional level: responding to internal pressures and external opportunities. in B Jongbloed, P Maassen & G Neave (eds), From the Eye of the Storm: Higher Education's Changing Institutions. Kluwer Academic Publishers, Dordrecht, pp. 141-164. https://doi.org/10.1007/978-94-015-9263-5_7

    Budgeting at the institutional level : responding to internal pressures and external opportunities. / Jongbloed, Ben; van der Knoop, Han.

    From the Eye of the Storm: Higher Education's Changing Institutions. ed. / Ben Jongbloed; Peter Maassen; Guy Neave. Dordrecht : Kluwer Academic Publishers, 1999. p. 141-164.

    Research output: Chapter in Book/Report/Conference proceedingChapterAcademic

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    AB - Just like any organisation in a private enterprise economy, universities and other institutions of higher education have to obtain a certain share of the GDP in order to survive. By exchanging educational and research services for resources from the rest of the community, these organisations earn their income. This income takes on several forms: block grants from the government, specific government grants, revenues from investments, sale of educational and research services, and income from charity (OECD 1990: 10). Here a first (superficial) comparison with profit-oriented business organisations would end, since in most countries income earned directly from the market does not play a dominant role in university funding. Most higher education institutions depend substantially upon contributions from public funds, that is, upon the share of tax revenues allocated to them by government. One could maintain, however, that universities and colleges in this respect compete for public money with each other, and with other fields of expenditure, and operate, too, upon a market in which representatives of the general public spend funds on academic services. Hence, universities and colleges are in a position that does not differ substantially from that of autonomous business organisations in a private enterprise economy. To secure their budget they have to compete and react to claims and conditions laid upon them, not just by government.

    KW - Resource allocation

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    Jongbloed B, van der Knoop H. Budgeting at the institutional level: responding to internal pressures and external opportunities. In Jongbloed B, Maassen P, Neave G, editors, From the Eye of the Storm: Higher Education's Changing Institutions. Dordrecht: Kluwer Academic Publishers. 1999. p. 141-164 https://doi.org/10.1007/978-94-015-9263-5_7