Inflation and Budgets | Confessions of a Community College Dean

Inflation and Budgets | Confessions of a Community College Dean

 

Everyone loves phrase issues…

 

(geese)

 

So right here’s a good one.

 

“State funding has been flat for years.  Local funding is also flat.  Tuition increases are capped at 2 percent.  Enrollment is down.  Inflation is running at 8 percent.  How do you prevent devastating after-inflation cuts in your employees’ salaries?  Show your work.”

 

It’s not simple.

 

Admittedly, it’s not the most effective phrase downside.  I used to be at all times keen on those with embedded jokes in them.  (“A train leaves Chicago heading north at 45 mph.  How long before the train is submerged in Lake Michigan?”)  But it’s a stumper in its personal proper.

 

Multi-year contracts could make bursts of inflation significantly tough if the timing is fallacious.  But even when the expiration date is correct, it’s arduous to get legislatures to fund appropriations consistent with inflation.  They don’t wish to danger the political fallout of a potential tax improve.  

 

Most neighborhood schools don’t have vital endowment earnings factored into their working budgets.  (Even in the event that they did, the market is having a tough yr.)  Typically, the majority of working budgets comes from a mixture of scholar tuition/charges and state/native/public assist.  The precise mechanisms range by state – some have tax levies, some have “districts,” some don’t have native funding in any respect – however the core mix of tuition plus public assist is commonplace.

 

So I’ll draw on the collective knowledge of my clever and worldly readers for this one.

 

Is there a moderately real looking and elegant answer to the phrase downside? I might be reached on Twitter (@deandad) or by way of e mail at deandad (at) gmail (dot) com.

 

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