Final - Project

Proposal to Cut down Overspending

Kimberly Gonzales

Course Number (COM-300-2) – Name of Course (Effective Communication: Research & Writing)

Colorado State University – Global Campus

Dr. Teresa Lao’s

January 28, 2015

  

 Table of Contents and List of Figures

 

 

 

1. Executive summary

2. Introduction

3. Problem Review

4. Research methodology

5. Hypothesis

6. Impact of Budget cutting

7. How to manage in low budget?

8. Similar cases

9. Conclusion

10. Recommendations

Executive Summary 

 

  Past researches have shown that Annex College (A hypothetical College) is not consuming its resources efficiently. Therefore, they are facing budget constraints now. The administration of college has decided to decrease the budget by keeping same or rather improved services. A service institute is an organization that is selling its services so while cutting cost and creating cost efficiency measures we need to conscious about the quality of services.

In this proposal, I am going to present ideas about the following:

· How to cut cost

· How to attract students

· How to maintain quality standards

· How to use resources economically and efficiently

· How to make budget that fulfills the demands

· Which sectors need special attention

· From where to earn

· How to restructure

· How to maintain goodwill of college

Data used was collected through oral and college administration of a similar college offering the same services by questionnaire. It’s not an issue of this college but in past, many universities like Arizona University system implemented cuts of 2,100 plus positions and merged many campuses due to the universities indulged in severe financial crises.

Introduction

Purpose of this final plan is to suggest useful budget techniques for decreasing budget but keeping the service level up to date of Annex College. Annex College is facing the issues of financial crises so management of this college wants to decrease its budget without affecting its service level.

When state government is facing financial crunch they look at trimming the budgets and sometime universities and education budgets are decreased to a certain level. Annex College is facing the same issue of a decrease in the budget in this recession. When a universities budget cuts down, it brings many complications in the structure and functioning of the institute.

Problem Review

 

 

  There is need to design such a campaign of Annex College where the normal budget figure is about 5 billion dollars. In the recession, financial ministries have reduced the budget of all sectors including education. Now the budget proposed for Annex College is 3.75 billion dollars. For this reason there is deficit of 1.25 billion dollars.

College administration wants to utilize this budget economically and efficiently. Therefore, they need a comprehensive plan and techniques to resolve this issue without affecting quality services.

Research methodology

To sort out this issue, research shows that a significant cut in budget will bring enrollment down, service quality will be effected and reduces student enrollment. Annex College is able to offset some of the hardships by dipping into reserves and shifting funding in departmental mix, unfortunately this practice cannot continue for a longer time. It is much essential to understand the effects of the budget cuts on the quality and quantity of services.

Research shows following implications for cutting budget figure up to 1.25 billion dollars.

· Students in minority like students with disabilities, and people from lower middle class background will be unable to access education in higher education

· Student will shift to non-selective private institutions, which offer quality education with higher fees

· Education quality will be declined

· Transfer rates will be decreased

· Research capacity will be diminished

· Degree completion duration will be increased

· Student will be burdened by more debt

· Systems will be unable to recover from funding reductions, if this decline continuous for longer terms.

Hypothesis

H0: Cost control techniques don’t put positive effect on efficiency in services

Hi: Cost control techniques put positive effect on efficiency in services

To prove these hypothesis data collected through questionnaire filled by students and financial committee of college. Data was analyzed by using the following techniques

a. Arithmetic Mean

b. Standard Deviation

c. Variance

d. Coefficient of Variation

Reduced budget of Annex College will be consumed in this manner as shown in figures

Impacts of decreasing budget figure

Enrollment Reductions for 2013 -2014 resulted in the decrease of enrollments at the following campuses of Annex College.

Selected Annex Campuses

Enrollment target Enrollment goal Percent change

San Francisco 6,885 6,472 -6.0%

Fullerton 28,298 25,233 -10.8%

Chico 14,712 13,314 -9.5%

East Bay 11,888 10,646 -9.5%

How to manage in low budget without affecting quality?

To manage in low budget Annex College need to do the following acts to manage the needs

i. Cut down many faculty position

ii. Increase the course duration

iii. Decrease the lecture timing

iv. Organize marketing fairs and request for donations

v. Merge many departments

vi. Allocate resources wisely

vii. Improve quality services so that enrollments can be increased

viii. Manage energy consumption as it consumed a big chunk of budget.

ix. Conduct courses in four shifts a day so that resources can be fully utilized.

Similar Cases

Following universities and colleges face financial crunch in past but due to efficient use of resources and cost reduction techniques they enabled to survive with the same rather improved quality.

· Arizona university of America

· NED university of Pakistan

· Al Aqsa University of Palestine

· New York College

Conclusion

From all the discussion here it is concluded that budget constraints brought many complications in education sector. If cost reducing techniques are used than we can cope this situation but not on longer terms.

Recommendations:

For stability of Annex College on longer terms college administration needs to

· Enroll 6000 more students over three years.

· Maintain Annex financial aid robust plan, by which fifty percent undergraduate students have all their tuition and fees fully funded.

· To maintain quality education, it needs to cut in the student-faculty ratio, increase courses offered and a shorter time for degree completion

References

 

Phil Oliff, Chris Mai, and Michael Leachman, “New School Year Brings More Cuts in State Funding for Schools,” Center on Budget and Policy Priorities, September 4, 2012, available at

 http://www.cbpp.org/files/9-4-12sfp.pdf

 

Menifield, Charles E. 2010. Comparative Public Budgeting: A Global Perspective, Sudbury, MA: Jones & Bartlett Learning.

Pew Center on the States. 2010. Policy Framework to Strengthen Government Planning, Budgeting, and Accountability. Accessed at:

www.pewcenteronthestates.org/uploadedFiles/wwwpewcenteronthestatesorg/Initiatives/Government_Performance/Accountability_Framework_GPP.pdf?n=6536

 University of California, “Actions to Address Budget Shortfalls,” June, 2012, available at

http://budget.universityofcalifornia.edu/files/2012/07/uc_budget_shortfall_actions.pdf