Higher Education Finance
Higher Education is actually a business enterprise, but an unusual one at that. This is a business which does not work for ‘profit’ as such. Its main aim is to provide quality education which is affordable to a large part of the society. If in the past few years higher education is becoming prohibitively expensive then it is eminent that there is a reason behind it. If we understand the economics behind it we will be more sympathetic to its cause. Appreciating the infrastructure of this huge enterprise can also lead to apprehension of the problems this system has to face. There are many facets to this system and understanding their complexity is important
Universities and colleges do not work for maximum profit like other businesses; they maintain a no-profit, no-loss base operation. The funding is divided between government, donors and students. Prices are bound to be influenced by economic conditions and revenue sources. Recently though the government is not providing tax subsidies, private gifts and grants are also on the lesser side and endowment funds are subject to market situations which are on the poorer side due to the economy. Efficiency and access are both influenced by loss of finances. In dismal economic conditions force governments to plan according to decreasing revenue; the government raises taxes and cuts down on funding. This results cut down on all programs which rely on state funding, then the education system is bound to
The problems of this sector are to be taken seriously and solved with sincerity keeping in mind the traditions of this extremely important and almost pious institution. To keep the integrity of this system ethical practices and transparency on all levels is to be aimed for. From fund raising to financial management, from faculty hiring to welfare spending, from education standards to provision of student grants and support. To achieve success a clear and universal code of conduct must be devised behind which all the management, faculty, other employees, support staff and students stand. Violations of this code must be highly disregarded and reputation of the system must be considered most vital. Universities are in charge of the progress of the whole society hence regulations must be considered iron clad and income should be generated through fair