Responses
Valaree Discussion
The control and approvals aspect of higher education affects both public and private institutions. In private institutions, there is typically a governing board or some other campus-based administration that oversees and governs policies regarding financials, investments, and institutional policies, allowing greater freedom in the utilization of resources when necessary (BENEFIT). When discussing technology costs, reallocation is required with various private institutions and permission is not required, whereas permission must be acquired in public institutions from the appropriate “system office, state coordinating board, other oversight boards, or the legislature itself” (Barr & McClellan, 2018, p. 16) in an effort to alter the approved uses of established legislature appropriations (LIMITATION). It is my opinion, that private institutions have greater leniency than public institutions as a result of policy and governmental oversight. That said, a benefit that I have found is the presence of unions in public and private institutions. Both types of institutions are required to comply with governmental regulations and laws regarding all forms of discrimination, worker’s compensation, and health and safety of students, staff, faculty, etc. This is including specific pay scales determinate on the type of employee that cannot be disregarded.
As the budget manager of a public institution, I anticipate a possible challenge in purchasing goods and services. In the event of mandatory state contracts for particular goods and services, I would have to show cause for not choosing to purchase from that specific source. Each state has its own bidding laws with low-bid requirements, forcing institutions to purchase goods that may not be of quality.
Barr, M. J., & McClellan, G. S. (2018). The Fiscal Context of American Higher Education. In Budgets and Financial Management in Higher Education (3rd ed., p. 16). Jossey-Bass. https://mbsdirect.vitalsource.com/#/books/9781119287766/cfi/6/16!/4/2/2/2/6@0:0
There are a multitude of differences in the financial context between private non-profit and public institutions, but there is one benefit and one limitation that stands out. For private institutions, “fiscal policies at private institutions are likely to be less cumbersome, permitting transfers of funds for reasonable purposes without outside approvals and other bureaucratic barriers” (McClellan, 2017). One limitation of private institutions is purchasing, “many items is highly decentralized in a private institution, with the unit taking responsibility for seeking bids and making decisions on the purchase. Whereas, on the surface such freedom can seem very attractive, it also requires that each person responsible for the budget exercise due diligence in managing the resources of the institution under their control.” Public institutions “one public policy response to the rising costs of attendance and concerns about student indebtedness has been a focus on “tuition free” college for students.” Meanwhile “public institutions encounter the added complication of audits from the state level. For example, in Illinois the Auditor General is required by law to regularly conduct audits of all state agencies, including public colleges and universities.” As a budget manager for a public institution one challenge I could see is adhering to fiscal policies. This is because at public institutions these have to be reviewed and approved by the governing board or state higher education agency. The decision is not solely up to the budget manager. Problem solving is a critical skill in this role, but still if the budget manager is able to determine a solution they may still need to run it by the board before it can be implemented and that can become frustrating, especially if it does not get approved.
Sources
McClellan, M.J.B.G. S. (2017). Budgets and Financial Management in Higher Education. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781119287766/