Institutional Expenditure Patterns and the Facilitation of Mission.The authors examine the relationship between institutional spending patterns and performance funding standards at the 14 public community colleges in Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , the first state to implement performance funding standards for its community colleges. Performance standard scores and data on expenditures by category were analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. to determine the percent of revenue spent by function in relationship to individual and aggregated performance standard scores for the colleges. The analyses revealed a relationship between expenditure categories and performance standard scores, with higher scoring colleges spending a greater portion of funds on academic support and instruction than lower scoring colleges. Considering that efficiency and effectiveness have been recent domains of high criticism from state legislators and the general public, it is important that the public perceives an institution's system of governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. as performing efficiently and delivering programs effectively. Such perceptions lead to public confidence and support and positive perceptions of an institution's contribution to the state's well-being. Creating public confidence and trust in an institution as a good investment contributes to the institutional growth and development that fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. the primary missions of institutions: instruction, research, and public service (Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , Brawer, & Associates, 1994). How higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. institutions fulfill their mission through the resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs process can be examined by four criteria in an economic model described by Tuckman and Chang Chang (chăng) or Yangtze (yăng`sē`, yäng`dzŭ`), Mandarin Chang Jiang, longest river of China and of Asia, c.3,880 mi (6,245 km) long, rising in the Tibetan highlands, SW Qinghai prov. (1990, p. 54): (a) a set of goals can be identified that results in increases in the satisfaction of decision-makers; (b) where multiple decision-makers are involved, a means can be found to select from among the myriad Myriad is a classical Greek name for the number 104 = 10 000. In modern English the word refers to an unspecified large quantity. The term myriad is a progression in the commonly used system of describing numbers using tens and hundreds. of sometimes conflicting goals of participants; (c) enough goal stability exists that the optimal resource allocation remains fairly stable; and (d) increases in the resources devoted to pursuing goals can be related to recognizable outputs. One of the greater powers residing with college presidents and governing boards Noun 1. governing board - a board that manages the affairs of an institution board - a committee having supervisory powers; "the board has seven members" in higher education is the allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of educational and general funding in fulfilling the institution's mission in the most efficient and effective manner possible (Vandament, 1989). Satisfaction with an institution's efficiency and effectiveness in fulfilling its mission is accentuated when the president or governing board allocates resources to those goals that yield the highest utility, thus establishing equilibrium equilibrium, state of balance. When a body or a system is in equilibrium, there is no net tendency to change. In mechanics, equilibrium has to do with the forces acting on a body. and patterns of stable resource allocation. The study described in this report was designed to examine the relationship between higher education institutional expenditure patterns and the facilitation Facilitation The process of providing a market for a security. Normally, this refers to bids and offers made for large blocks of securities, such as those traded by institutions. of institutional mission. Tennessee's System of Public Two-Year Colleges Because of the increased need to retain public confidence and trust in the efficiency and effectiveness of higher education institutions, many states have "considered implementation of instructional performance criteria and instructional outcomes measures in their budgeting systems" (Albright Al·bright , Horace Marden 1890-1987. American conservationist and cofounder of the National Park Service. , 1985, p. 18). In 1979, the state of Tennessee was the first to initiate performance funding standard criteria; since then, one-third of the states have adopted similar methods (Banta
Banta is a lemon-flavoured drink popular in India. , Rudolph Rudolph: see Raoul, king of France. Rudolph his red nose lit the way for Santa and his sleigh. [Am. Pop. Music: “Rudolph the Red-Nosed Reindeer”] See : Nose , Van Dyke Van Dyke (or van/Van Dijk or Dyk etc) is a surname of Dutch origin. It refers to:
v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. by the Tennessee Board of Regents The Tennessee Board of Regents as currently constituted is authorized by an act of the Tennessee General Assembly passed in 1972. It supervises all public institutions of higher education in Tennessee not governed by the University of Tennessee system, including four-year , which has implemented a system of uniform policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental that have had strong, positive effects on institutional development, as well as students and the state (Consacro & Rhoda Rhoda was a Golden Globe winning, and Emmy Award-winning American situation comedy and a television spin-off of The Mary Tyler Moore Show. Emmy Award winning actress Valerie Harper played the lead role of Rhoda Morgenstern Gerard, the spunky, weight conscious, , 1996). In addition, the Tennessee Higher Education Commission The Tennessee Higher Education Commission was established by the Tennessee General Assembly in 1967, primarily to achieve coordination between the various public higher education institutions in the state. (1976) has instituted uniform financial reporting for Tennessee's two-year institutions, in which all educational and general expenditures are classified into eight specific functions. Within these eight functions are subcategories, in which the various activities of each distinct area are described. The following is a brief description of the eight educational and general expenditure functions, as well as their respective subcategories: Instruction includes expenditures for all activities that are part of an institution's instructional programs: A. General Academic Instruction--instructional activities during the academic year B. Vocational Vocational Relating to an occupation, career, or job. Mentioned in: Myers-Briggs Type Indicator and Technical Instruction--instructional activities during the academic year C. Special Session Instruction--instructional activities during periods not common with the institution's regular year D. Community Education--instructional activities that generally do not result in credit toward a degree or certificate E. Preparatory-Remedial Instruction--instructional activities that give students the basic knowledge and skills required by the institution before undertaking formal course work Research includes expenditures for activities specifically organized to produce research: A. Institutes and Research Centers--research activities that are part of a formal organization created to manage a number of research efforts Public Service includes expenditures for activities established to provide non-instructional services beneficial to individuals and groups external to the institution: A. Community Service--activities organized and carried out to provide general community services, excluding instructional activities B. Cooperative Extension Service--noninstructional public service activities established as a result of cooperative extension efforts between the institution and outside agencies C. Public Broadcasting public broadcasting: see broadcasting. Services--operation and maintenance of broadcasting services operated outside of the institution's instruction, research, and academic support programs Academic Support includes funds expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. to provide support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services for the institution's primary missions-- instruction, research, and public service: A. Libraries--organized activities that directly support the operation of a catalogued collection B. Educational Media Services--organized activities providing audio visual services that aid in the transmission of information in support of the institution's instruction, research, and public service programs C. Academic Computing computing - computer Support--organized activities that provide computing support to the three primary programs D. Academic Administration--activities designed and carried out to provide administrative and management support to the academic programs E. Academic Personal Development--activities that provide faculty with opportunities for personal and professional growth and development F. Course and Curriculum Development--activities established to improve or add to the institution's instructional offerings Student Services includes funds expended for offices of admissions and the registrar See domain name registrar. and activities with the purpose of contributing to students emotional and physical well-being and intellectual, cultural, and social development outside of formal instruction: A. Student Services Administration--activities that provide assistance and support to the needs and interests of students B. Social and Cultural Development--activities that provide for students' social and cultural development outside formal instruction C. Counseling and Career Guidance--organized placement, career guidance, and personal counseling services for students D. Financial Aid Administration--activities that provide financial aid services and assistance for students E. Student Admissions--activities related to the identification of prospective students, the promotion of attendance, and the processing of applications for admission F. Student Records--activities to maintain, handle, and update records for current and previously enrolled students G. Student Health Services--organized student health services health services Managed care The benefits covered under a health contract that are not self-supporting self-sup·port n. The act of or capacity for supporting oneself, especially financially, without the help of others. self Institutional Support includes expenditures for central executive-level activities concerned with management and long-range long-range adj. 1. Of, suitable for, or reaching long distances: long-range missiles. 2. Requiring or involving an extended span of time: long-range planning. planning for the entire institution: A. Executive Management--all central executive-level activities concerned with management and long-range planning for the entire institution B. Fiscal Operations--operations related to fiscal control and investments Operation and Maintenance includes all expenditures of current operating funds for the operation and maintenance of the physical plant, grounds, and facilities: A. Physical Plant Administration--activities that directly support physical plant operations B. Building Maintenance--activities related to routine repair and maintenance of buildings and other structures C. Custodial Services--related to custodial services in buildings D. Utilities--related to heating, cooling, light and power, gas, water, and other utilities E. Landscape and Grounds Maintenance--related to the operation and maintenance of landscape and grounds F. Major Repairs and Renovations--expenditures related to major repairs Scholarships and Fellowship fellowship Graduate education A post-residency training period of 1–2 yrs in a subspecialty–eg, hand surgery, which allows a specialized physician to develop a particular expertise that may have a related subspecialty board; fellowship time is often includes expenditures for scholarships and fellowships in the form of grants for students, resulting from selection by the institution. A. Scholarships--grants-in-aid, trainee stipends, tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. and fee waivers, and prizes A final, unique aspect of Tennessee higher education is its uniform institutional effectiveness model for two-year institutions. Dating back to 1979, the model first consisted of five performance areas in which up to 5% of an institution's annual state allocation for instruction was awarded on the basis of its ability to demonstrate the accomplishments set forth by the Tennessee Higher Education Commission (THEC THEC Tennessee Higher Education Commission ) (Banta & Fisher, 1984). The 1997 to 2002 model consists of 10 performance funding standards in which institutional performance is rewarded, dependent upon each institution's overall score on all of the standards. In this version, institutions can earn up to 5.45% over their operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. (THEC, 1997). The overall results of the performance funding standard program in Tennessee is reported best by the commission itself: "since the program's inception, over one-quarter of a billion dollars have been earned by institutions through successful achievement of measurable performance outcomes" (THEC, 1997, p. 1). The following provides a summary of each Tennessee two-year institutional performance funding standard, evaluative criteria, and points allotted al·lot tr.v. al·lot·ted, al·lot·ting, al·lots 1. To parcel out; distribute or apportion: allotting land to homesteaders; allot blame. 2. : Standard 1--General Education Maximum Points: 15 Purpose: to improve the quality of general education Evaluation: measured by the performance in mean scores of graduates as compared to national norms on a standardized test A standardized test is a test administered and scored in a standard manner. The tests are designed in such a way that the "questions, conditions for administering, scoring procedures, and interpretations are consistent" [1] of general education Standard 2--General Education Evaluation Maximum Points: 10 Purpose: to experiment with better ways of evaluating the quality of general education Evaluation: measured by the performance of graduates not tested in Standard 1 on a standardized test of general education Standard 3--Program Accreditation accreditation, n a process of formal recognition of a school or institution attesting to the required ability and performance in an area of education, training, or practice. Maximum Points: 10 Purpose: to achieve and maintain program accreditation Evaluation: measured as the percentage of eligible accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. programs Standard 4--Nonaccreditable Programs Maximum Points: 10 Purpose: to improve the quality of nonaccredited programs Evaluation: measured by the percentage of successful standards of the total number of standards Standard 5--Major Field Assessment Maximum Points: 15 Purpose: to improve the quality of major field programs Evaluation: A field is successful if a respective graduate's exam score is either at or above a recognized norm or shows improvement over previous testing Standard 6--Student or Alumni Surveys Maximum Points: 10 Purpose: to improve the quality of academic programs as evaluated by surveys of recent graduates and presently enrolled students Evaluation: In the first, third, and fifth year of the cycle, institutions will survey all alumni who graduated two years before the survey is administered; in the second and fourth year of the cycle, institutions will survey a representative sample of students. Standard 7--Retention and Persistence (1) In a CRT, the time a phosphor dot remains illuminated after being energized. Long-persistence phosphors reduce flicker, but generate ghost-like images that linger on screen for a fraction of a second. Maximum Points: 5 Purpose: to improve the quality of academic programs as evaluated by targeting specific retention and persistence-to-graduation strategies Evaluation: establish goals to improve overall retention and persistence rates or strategies Standard 8--Job Placement Maximum Points: 15 Purpose: to continue to improve job placement of graduates Evaluation: Each major field will be evaluated by the placement rate of graduates; program is successful if placement rate is at least 75% of graduates Standard 9--Institutional Strategic Planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Maximum Points: 5 Purpose: designed to improve the quality of academic programs by evaluating progress toward specific institutional goals Evaluation: Measurable objectives related to institutional strategic plans will be developed for each year. Standard 10--State Strategic Planning Maximum Points: 5 Purpose: designed to improve the quality of academic programs by evaluating progress toward specific state goals Evaluation: Measurable objectives related to state strategic plans will be developed for each year. The institutional population used for this study, while small in number (N=14), was unique and important in three aspects: (a) the institutions are governed under uniform policies and procedures; (b) the institutions have a uniform system of financial reporting; and (c) the institutions use a uniform institutional effectiveness model (Consacro & Rhoda, 1996; THEC, 1976, 1997). In addition, these uniform standards of Tennessee's two-year institutions also meet the four criteria of the economic model described by Tuckman and Chang (1990) in that they identify a set of goals for resource allocation, employ a common method for that allocation, maintain goal stability through the respective method, and increase resources related to recognizable outputs. Thus, the primary focus of the present study was to examine the fourth criterion of the economic model: how these institutions increase resources related to recognizable outputs in fulfilling the institution's mission. Procedures Institutional funding standard scores and educational and general expenditure data for Tennessee's 14 two-year institutions were acquired from the Tennessee Higher Education Commission and the Tennessee Board of Regents for the 1996-97 fiscal year. Points awarded on each performance funding standard and the percentages of institutional spending on each educational and general expenditure function were used to depict de·pict tr.v. de·pict·ed, de·pict·ing, de·picts 1. To represent in a picture or sculpture. 2. To represent in words; describe. See Synonyms at represent. the relationship between the performance standard scores each institution received and the amounts institutions spent on each expenditure function. The following procedures used in the analyses were implemented because the 14 institutions made up the entire population to be studied, hence the weak power for any other statistical procedure appropriate for such an investigation. Statistics were run on each performance funding standard and educational and general expenditure function revealing the means, standard deviations In statistics, the average amount a number varies from the average number in a series of numbers. (statistics) standard deviation - (SD) A measure of the range of values in a set of numbers. , and correlations of the data. Subsequently, performance funding standards 4 and 10 and expenditure functions "Research" and "Scholarships and Fellowships" were omitted from the remaining analysis because of nonexistent non·ex·is·tence n. 1. The condition of not existing. 2. Something that does not exist. non or low standard deviations (see Table 1). There were no standard deviations on performance standards 4 and 10 because all 14 institutions in the sample scored the maximum number of points (10) allotted for these two standards. The "Research" and "Scholarships and Fellowships" expenditure functions revealed little or no standard deviation due to lack of spending in those areas, which is generally characteristic of two-year institutions. The correlation coefficients Correlation Coefficient A measure that determines the degree to which two variable's movements are associated. The correlation coefficient is calculated as: for both the performance funding standards and the educational and general expenditure functions revealed weak relationships between each standard and expenditure, respectively, indicating that each individual standard represented a different criterion of measure, whereas the expenditure functions represented a different criterion of allocation. Hence, each individual performance funding standard and each individual expenditure function were uniquely separate from each other in their substantive nature. Table 1 Population Means and Standard Deviations for Performance Standard Scores and Expenditures by Function as a Percentage of Education and General Budgets for Two-Year Institutions in Tennessee, 1996-1997
Standard
Mean Deviation
Performance Standard Scores
Standard 1 - General Education 8.21 1.93
Standard 2 - General Education Evaluation 7.86 2.21
Standard 3 - Program Accreditation 8.36 2.47
Standard 4 - Non-accreditable Programs 10.00 0.00(*)
Standard 5 - Major Field Assessment 9.86 0.53
Standard 6 - Student or Alumni Surveys 7.57 2.85
Standard 7 - Retention & Persistence 7.29 2.55
Standard 8 - Job Placement 9.93 0.27
Standard 9 - Institutional Strategic Planning 9.71 0.61
Standard 10 - State Strategic Planning I0.00 0.00(*)
Expenditures by Function as a Percentage of Education
and General Budget
Instruction 55.75 4.07
Research 0.00 0.00(*)
Public Service 1.19 1.82
Academic Support 7.95 2.21
Student Services 11.44 1.87
Institutional Support 12.66 1.98
Operation & Maintenance 9.61 1.63
Scholarships & Fellowships 1.40 0.88(*)
(*) Variables omitted due to nonexistent or low standard deviations The remaining performance funding standard scores for each institution were labeled as either being above or below the aggregated average or mean of each individual performance standard to distinguish between high and low performing schools. The scores above or below the mean for each performance standard were then compared with each educational and general expenditure function, thus revealing the percentage of revenue spent on each function in relation to those institutions scoring above and below the aggregated mean of each individual performance standard (see Table 2). Table 2 Percent of Revenue Spent by Expenditure Function in Relationship to Mean Performance Standard Scores for Two-Year Institutions in Tennessee, 1996-1997
Mean
Performance Percent of Revenue Expended by Function
Standard
Scores INST PS ACAD STUD
Standard 1
Lower 6.57 54.42 1.57 7.10 12.01
Higher 9.86 57.08 0.81 8.81 10.88
Overall 8.21
Standard 2
Lower 5.40 54.33 1.97 6.67 11.96
Higher 9.22 56.53 0.75 8.66 11.16
Overall 7.86
Standard 3
Lower 3.00 57.59 0.56 7.80 11.09
Higher 10.00 54.72 1.54 8.04 11.64
Overall 8.36
Standard 5
Lower 8.00 53.62 7.23 6.70 9.32
Higher 10.00 55.91 0.72 8.05 11.61
Overall 9.86
Standard 6
Lower 4.83 56.60 1.57 7.48 11.11
Higher 9.63 55.11 0.90 8.31 11.69
Overall 7.57
Standard 7
Lower 4.83 54.57 0.91 7.59 12.15
Higher 9.13 56.63 1.40 8.22 10.92
Overall 7.29
Standard 8
Lower 9.00 53.62 7.23 6.70 9.32
Higher 10.00 55.91 0.72 8.05 11.61
Overall 9.93
Standard 9
Lower 8.67 54.80 0.27 10.06 10.88
Higher 10.00 56.01 1.44 7.38 11.60
Overall 9.71
Mean
Performance
Standard Percent of Revenue Expended
Scores by Function
INSP MAT
Standard 1
Lower 6.57 13.46 10.03
Higher 9.86 11.85 9.19
Overall 8.21
Standard 2
Lower 5.40 13.83 9.60
Higher 9.22 12.00 9.61
Overall 7.86
Standard 3
Lower 3.00 12.16 8.86
Higher 10.00 12.93 10.03
Overall 8.36
Standard 5
Lower 8.00 12.82 9.60
Higher 10.00 12.65 9.61
Overall 9.86
Standard 6
Lower 4.83 12.66 9.13
Higher 9.63 12.65 9.97
Overall 7.57
Standard 7
Lower 4.83 13.40 10.21
Higher 9.13 12.10 9.16
Overall 7.29
Standard 8
Lower 9.00 12.82 9.60
Higher 10.00 12.65 9.61
Overall 9.93
Standard 9
Lower 8.67 12.99 9.90
Higher 10.00 12.57 9.53
Overall 9.71
INST=Instruction PS=Public Service ACAD ACAD Academy ACAD Academic ACAD AutoCAD (design/drafting development software by Autodesk) ACAD Acadia National Park (US National Park Service) ACAD Atherosclerotic Coronary Artery Disease =Academic Support STUD=Student Services INSP INSP Inspection INSP Inspector INSP Inspect INSP Inspirational Network INSP Institut des Nanosciences de Paris (French) INSP International Nuclear Safety Program INSP International Network on Strategic Philanthropy =Institutional Support MAT=Operations and Maintenance In addition, another procedure was used in which the mean scores of each institution's total awarded performance funding standard points were compared with the aggregated educational and general expenditure functions. This procedure revealed the percentage of expenditure function spending in relation to those institutions scoring above and below the aggregated mean of the total performance standard points awarded (see Table 3), thus revealing the differences in resource allocation between high and low performing institutions. Correlation coefficients measuring the performance funding standard scores against the educational and general expenditure functions were also calculated, revealing a wide range of correlation coefficients (from -.95 to .58), and thus linear relationships, between the variables (see Table 4). Table 3 Differences between Percentages of Revenue Expended by Function Based on Aggregated Performance Standard Scores for Two-Year Institutions in Tennessee, 1996-1997.
% of Revenue Expended
Lower Higher
Expenditure Function Scoring Scoring
Institutions Institutions Difference
Instruction 54.13 56.64 2.51(*)
Public Service 1.81 0.84 -0.97
Academic Support 6.63 8.69 2.06(*)
Student Services 12.10 11.08 -1.02(**)
Institutional Support 14.05 11.88 -2.17(**)
Operation & Maintenance 9.64 9.59 -0.05
(*) Expenditure functions for which the greatest part of revenue was spent by institutions in the higher aggregated performance standard mean group. (**) Expenditure functions for which the greatest part of revenue was spent by institutions in the lower aggregated performance standard mean group. Table 4 Correlation Coefficients for Performance Funding Standards and Educational and General Expenditures by Function for Two-Year Institutions in Tennessee, 1996-1997
Standard Expenditure Function
INST PS ACAD STUD INSP MAT SCOL
STD1 .58 -.27 .27 -.39 -.55 -.39 -.00
STD2 .42 -.09 .34 -.47 -.62 .03 -.23
STD3 -.33 .25 .19 .02 .13 .30 -.37
STD5 .15 -.95 .16 .33 -.02 .00 .23
STD6 -.23 .05 .24 -.03 .02 .19 .02
STD7 .53 .23 .02 -.58 -.52 -.36 .09
STD8 .15 -.95 .16 .33 -.02 .00 .23
STD9 .15 .27 -.63 .15 -.02 -.06 .20
Results The results shown in Tables 5a and 5b indicate that those institutions scoring above the aggregated mean on each individual performance funding standard spent the greater part of their revenue on (a) Academic Support, (b) Instruction, (c) Student Services, and (d) Operations and Maintenance; those institutions scoring below the aggregated mean on each individual performance funding standard spent the greater part of their revenue on: (a) Institutional Support, (b) Public Service, and (c) Scholarships and Fellowships. Table 5a 1996-97 Tennessee Two-Year Institutional Spending by Expenditure Function for Institutions in the Higher Mean Group for each Performance Funding Standard
Standard
Expenditure Function 1 2 3 5 6 7 8 9
Instruction x x x x x x
Public Service x x x
Academic Support x x x x x
Student Services x x x x x
Institutional Support x x
Operations & Maintenance x x x x
Each "x" indicates a function for which the greater part of revenue was spent by institutions in the higher mean group for each standard. Bold type bold type n (Typ) → caractères mpl gras bold type n → Fettdruck m bold type n (TYP denotes the functions for which the greatest part of revenue was spent by institutions in the higher mean groups. Table 5b 1996-97 Tennessee Two-Year Institutional Spending by Expenditure Function for Institutions in the Lower Mean Group for each Performance Funding Standard
Standard
Expenditure Function 1 2 3 5 6 7 8 9
Instruction x x
Public Service x x x x x
Academic Support x
Student Services x x x
Institutional Support x x x x x x
Operations & Maintenance x x x
Each "x" indicates a function for which the greater part of revenue was spent by institutions in the lower mean group for each standard. Bold type denotes the functions in which the greatest part of revenue was spent by institutions in the lower mean group. The results of the second analysis using the institution's total awarded performance funding standard points compared with the aggregated educational and general expenditure functions reveal somewhat similar patterns (see Table 3). Those institutions scoring above the aggregated mean on the total awarded performance standard points spent the greater part of their education and general funds on (a) Instruction and (b) Academic Support whereas those institutions scoring below the aggregated mean on the total awarded performance standard points spent the greater part of their education and general funds on (a) Institutional Support, and (b) Student Services. Although those high performing institutions on the first analysis spent more revenue on Student Services, the differences between the means of those above and below the aggregated mean were small, hence the results of the second analysis using the total awarded performance standard points in revealing Student Services as a high revenue function for lower performing institutions. Discussion The National Association of College and University Business Officers (1992) identified facilitating the institution's mission as the central focus of institutional budgeting in higher education. The present study examined the discretionary budget allocations of a system of 14 public two-year institutions and how these functional budget expenditures were associated with a set of uniform institutional performance measures. The study identified distinctly different expenditure patterns as measured by percentages of total revenue among institutions that scored lower on performance standards as compared with higher scoring colleges. Somewhat similar patterns were observed when groups of institutions were designated as higher and lower scoring based on aggregated scores. Not surprisingly, colleges that gave budgetary emphasis to Instruction, Academic Support, Student Services, and Operation and Maintenance achieved higher scores on individual performance standards than institutions with different allocation patterns. Similarly, institutions scoring higher on the aggregated performance funding standards focused higher percentages of their Education and General expenditures on Instruction and Academic Support. In all cases, those higher scoring institutions, through their budgetary emphases, have more effectively linked their operations strategically to institutional missions. In so doing, the higher performing institutions have validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. the fourth criteria of Tuckman and Chang's (1990) economic model of resource allocation for institutions of higher education; that is, institutions have demonstrated that increases in resources devoted to pursuing goals can be related to recognizable outcomes. Given the contemporary national emphasis on associating increases in public appropriations for higher education institutions with measurable increases in institutional performance, academic leaders in other settings may wish to examine the experiences of Tennessee's public two-year institutions. As an accountability mechanism, performance funding has allowed Tennessee higher education officials and faculty, as well as state legislators, a way to assess the progress of publicly funded higher education (THEC, 1993). In turn, this has allowed Tennessee higher education institutions to pursue supplemental funding for improvements in higher education instruction despite the decrease in state revenues. As Banta et al. (1996) state, "giving institutions an opportunity to set their own goals and methods of monitoring in areas that are of interest to the state, such as increasing minority enrollment and retention/graduation rates, also holds promise for serving the twin purposes of accountability and improvement" (p. 44). In sum, Tennessee's performance funding model may serve as a potential framework in which the efficiency and effectiveness of colleges and universities can be assessed, as well as improved through the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. accountability mechanisms. Moreover, implementation of the Tuckman and Chang model for resource allocation may also be a helpful tool for public colleges and universities aspiring as·pire intr.v. as·pired, as·pir·ing, as·pires 1. To have a great ambition or ultimate goal; desire strongly: aspired to stardom. 2. to enhance mission accomplishment. References Albright, B. (1985). Quality incentives in the budget. In D.J. Berg & G.M. Skogley (Eds.), Making the budget process work (pp. 15-30). New Directions in Higher Education, no. 52. Banta, T.W., & Fisher, H.S h.s., n Latin phrase for “at bedtime”; used in writing prescriptions. . (1984). Performance funding. Financial Incentives for Academic Quality, 48, 29-41. Banta, T.W., Rudolph, L.B., Van Dyke, J., & Fisher, H.S. (1996). Performance funding comes of age in Tennessee. Journal of Higher Education, 67, 23-45. Cohen, A.M., Brawer, F.B., & Associates. (1994). Managing community colleges. San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden : Jossey-Bass. Consacro, D.P., & Rhoda, R.G. (1996). Community colleges in Tennessee. Community College Journal of Research and Practice, 20, 575-584. National Association of College and University Business Officers. (1992). College and university business administration. Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC: Author. Tennessee Higher Education Commission. (1976). Financial reporting for Tennessee public colleges and universities. Nashville Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. : Author. Tennessee Higher Education Commission. (1993). Performance funding handbook
This article is about reference works. For the subnotebook computer, see .
Tennessee Higher Education Commission. (1997). Performance funding handbook. Nashville: Author. Tuckman, H.P., & Chang, C.F. (1990). Participant goals, institutional goals, and university resource allocation decisions. In S. A. Hoenack & E. L. Collins (Eds.), The economics of American universities American University, at Washington, D.C.; United Methodist; founded by Bishop J. F. Hurst, chartered 1893, opened in 1914. It was at first a graduate school; an undergraduate college was opened in 1925. Programs provide for student research at many government institutions. (pp. 53-75). Albany Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. : State University of New York Press The State University of New York Press (or SUNY Press), founded in 1966, is a university press that is part of State University of New York system. External link
Vandament, W.E. (1989). Managing money in higher education. San Francisco: Jossey-Bass. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. O. Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. serves as assistant director of Institutional Research at Dartmouth College Dartmouth College, at Hanover, N.H.; coeducational; chartered 1769, opened 1770, the ninth colonial college (see Wheelock, Eleazar). Originally a men's college, Dartmouth began admitting women in 1972. in Hanover, New Hampshire Hanover is a town located on the Connecticut River in Grafton County, New Hampshire, United States. The population was 10,850 at the 2000 census. It is best known as the home of Dartmouth College. . michael.thompson@dartmouth Dartmouth, city, Canada Dartmouth, city (1991 pop. 67,798), S N.S., Canada, on Halifax harbor, an inlet of the Atlantic Ocean. The city has large sugar and oil refineries, and it produces ships, iron, and aircraft parts. .edu See .edu. (networking) edu - ("education") The top-level domain for educational establishments in the USA (and some other countries). E.g. "mit.edu". The UK equivalent is "ac.uk". Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. O. Riggs Riggs may refer to: People
Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. . rriggs@memphis.edu |
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