Institutional Financial Position: What’s an Academic Leader to Do?

The higher education landscape is characterized by a wide range of institutions with various levels of financial stability. A few enjoy enormous wealth. Annually, a handful close or merge with other institutions. Most manage year by year, growing in times of plenty, downsizing in response to challenging conditions. The management of the institution’s fiscal position is the responsibility of the board and president, who garner resources and distribute them institution wide. Academic leaders—deans, chairs, and directors—annually make budget requests to the central administration, receive an annual allocation, and are responsible for its conduct over the year. Most mid-level administrators have a limited role in institutional fiscal affairs. They manage the unit’s budget expenditures, occasionally support grant and philanthropic projects, and are internal spokespersons for their respective units’ resource needs.