BUDGET and FINANCE in HIGHER EDUCATION

Santa Clara University

School of Education, Counseling Psychology & Pastoral Ministries

EDUC 384
Section 56811
Spring Quarter 2010
Tuesdays 6-9 p.m.
KENNA 310

Instructor: James W. Keller

Phone: (650) 358-6790
Fax: (315) 292-9142
Cell: (650) 619-2444
Office Hours: by appointment

kellerj@smccd.edu
jim.keller@stanfordalumni.org

Mission and Goals of the Department of Education

The mission of the Department of Education is to prepare professionals of competence,

conscience, and compassion, who will promote the common good as they transform lives,
schools, and communities. Rooted in the Jesuit tradition at Santa Clara University, core
values of reflective practice, scholarship, diversity, ethical conduct, social justice, and
collaboration guide both theory and practice.

Department of Education Goals:

1. To prepare professionals who will work competently with individuals who have a
variety of strengths; experiences, and challenges, those with diverse backgrounds,
and those in greatest need;

2. To develop positive habits of mind, identify, and apply best practices in the field,
and engage in critical reflection on practice;

3. To demonstrate mastery-level knowledge and skills in teaching and learning; and

4. To become leaders sensitive to the ethical and social consequences of their

decisions.
 Course Description

Institutions of higher education are complex organizations of great diversity and scope.
The combination of instruction, research and public service depends upon their mission.
The purpose of this course is to provide the student with an overview of the financial and
budget elements that are essential to an institution’s existence; to bring to the student an
intelligent and sympathetic awareness of college and university financial resources; to
identify the components of business and fiscal management in higher education and to
provide the student with some practical demonstrations of higher education finance and
budget.

Required Text and Materials

Textbooks: College and University Business Administration, Sixth Edition, NACUBO

College & University Budgeting, NACUBO

Planning and Managing the Campus Facilities Portfolio, NACUBO

Periodicals: Chronicle of Higher Education and related web site

Handouts: To be provided by instructor

Student Learning Outcomes

• Have developed a contextual framework of the political, social, and

organizational dimensions of colleges and universities.
• Have awareness and understanding of the variety of size, scope and purpose of
colleges and universities.
• Have familiarity with the terminology encountered in higher education finance
and budget.
• Have familiarity with the important business aspects of strategic planning.
• Understand generally the scope of business and financial activities in a college or
university.
• Understand generally the basic resources of an institution of higher education.
• Understand generally the basic expenditures of an institution of higher education.
• Understand generally the fundamental aspects of developing an operational
budget in a college or university.
• Understand generally the link between resources and accountability-performance
measures.
• Improved capacity to think strategically, as well as operationally when confronted
with a college or university business issue.
• Have the ability to address in a practical way a hands-on experience in
identifying, assessing and evaluating a college’s budget and financial condition.
 • Have familiarity with auxiliary functions, debt financing, risk management capital
planning and implementation, and the typical organizational structure of business
administration in a college or university.

Course Grade

The course grade will be based on the following:

5% Periodic classroom assignments

5% Short Paper #1
25% Mid-term
10% Short Paper #2
15% Participation in class and attendance
40% Final
100%

Grading Scale

A+ 97-100
A 94-96
A- 90-93
B+ 87-89
B 84-86
B- 80-83
C 79

Participation and Attendance

This is a survey class. That means you will receive a lot of information about business
and finance in higher education covering many sub topics. Each class will be dedicated to
a specific area such as Risk Management, Budget, Universities Revenues, and
Construction. Attendance in class is important to hear the material and class discussion.
You will be expected to participate in discussions by bringing your perspective to issues.
You will be expected to lead one or more of these discussions based on one of your short
papers. You are not only responsible for the reading material but the material introduced
by the other students. You will need to be in class to receive the material and hear the
related discussion. Participation and attendance will be 15% of your grade.

Periodic Classroom Assignments

In addition to required texts and reading material, I will ask you to examine web sites and
other material as we proceed through the class.

Your first assignment – Review the WASC and Carnegie Foundation web pages.
WASC – Find and review the WASC standards. In particular look at any reference to the
management of resources; human, physical, financial, data. Also, assess the importance
of certain thematic concepts such as “planning.”
http://www.wascsenior.org/findit/files/forms/Handbook_of_Accreditation_2008_with_hy
perlinks.pdf

Carnegie Foundation – review the various ways that this organization characterizes and
groups colleges and universities. Carnegie Foundation classifications ARE NOT the only
way to classify or differentiate universities. What other ways can colleges and
universities be differentiated other than by those identified by the Carnegie Foundation?
http://www.carnegiefoundation.org/classifications/index.asp?key=785

Compare the Carnegie site with that of US News:

http://colleges.usnews.rankingsandreviews.com/best-colleges/liberal-arts

Short Papers

During the term you must prepare and submit two short papers. Each should not exceed
seven pages double spaced. The first paper will constitute 5% of your grade while the
second will constitute 10% of your grade. The second paper will be expected to be more
analytical and on point. As part of your participation grade I will ask you to lead the class
on a brief discussion of the report topic.

Report on a topic you find in a news article or essay regarding higher education. All
students will be responsible for the content of student papers and related class discussion
on exams. Bring enough copies for your fellow students. OR you may email your paper
to each student. Each paper must include the following:

• Where did you find the article and how recent is it?
• Give a brief description of the article. Be brief. I am far less interested in WHAT
the issue is than I am about WHY something is important and HOW it might
impact a college.
• What are the primary business and finance issues discussed?
• How does the topic relate to current business related issues in higher education?
• How might the issues affect differently the various categories of higher education
differently; public schools, private schools, research institutes, community
colleges, small liberal arts colleges, etc.?
• What are the short-term and long-term issues and concerns?
• How and should a college respond with regard to planning, budget, capital,
student enrollment management, etc.
• A concluding remark
Caution: Do not spend a much time, if any, with opining on whether the facts of the issue
are bad or good. It is so much more important that you recognize the issues and analyze
the effects on higher education institutions.

SCU 384
Mid-term and Final

There will be both a mid-term and final exam. The exams will be based on content from
textbook assignments, student presentations, and class lectures. The exams will be a
combination of multiple choice and essay. The Mid-term will constitute 25% of the
grade. The Final will constitute 40% of the grade.

Multiple Choice: I will be using multiple choice to assess whether you have been reading
the material and attending class. The test will determine whether you recognize
important terms and concepts discussed in the material.

Essay: I will present you with a situation and ask you to discuss or prepare a document.
For example, I may present you with several circumstances and ask you to prepare a
letter or memo to you college president regarding the issue. You will not only have to
present the material in such a manner that demonstrates that you understand the issues,
but also demonstrates that you can prepare a document in a professional manner suitable
to the audience. See if you can find a few memos to presidents or institutional board
reports.

Departmental and University Policies

Attendance: Students are required to attend all classes; however, penalties for absences
are left to the discretion of the instructor. Students are held accountable for all
assignments in each course, whether or not the assignment was announced during their
absence. Students must be present for 80% or 8 sessions of a course to be eligible to
receive a grade. Instructors who teach and face a holiday should meet during finals week
to make up for the holiday taken or lengthen each class period to equal a total of 30 hours
for the quarter.

Accommodations for a Disability: The Santa Clara University values all learners.
Should you have a disability needing accommodations, please contact Disability
Resources at 408-554-4109 (voice) or 408-554-5445 (TDD). If we receive a request for
disability accommodations for a student in my course, I am obligated by law (Americas
With Disabilities Act-ADA) to provide the necessary accommodations for this student. If
you are unsure on how to make these accommodations, call Disabilities Resources at 554
4318.
Academic Integrity: As in all institutions of higher learning, academic ethics is an
important part of the university ethos. At Santa Clara University, if a student is guilty of
a dishonest act in an examination, course paper, or other required work for a course, or
assists others in such act, they are subject to disciplinary action. They may receive a
grade of “F” for the course or be dismissed from the University. Students who violate
copyright laws, including those covering of the copying of software programs, or who
knowingly alter official academic records from this or any other institution may also face
similar disciplinary action. Please contact the Executive Director Janice Chavez in the
Department of Education for consultation if you have any questions about this issue at
jachavez@scu.edu

Course Topic Schedule

Class 1—March 30
Introduction to Business and Finance in Higher Education

Required Reading
Examine the Accreditation and Carnegie web sites identified as your first assignment
above.

Class Activity
Lecture and small group discussions

Class 2—April 6
College and University Revenues

Required Reading
CUBA, chapters 1,2,4 and 9
Planning and Managing the Campus Facilities Portfolio, pages 1-18, 129-138

Class Activity
Lecture, class discussion of first assignment, and small group discussions

Class 3—April 13
Higher Education Planning as it relates to Business and Finance
Required Reading
CUBA, chapter 3
Planning and Managing the Campus Facilities Portfolio, pages 19-28, 77-96

First Paper is Due – be prepared to lead discussion

Class Activity
Lecture, paper presentations and class discussion
Class 4—April 20
Accounting and Record Keeping in Institutions of Higher Learning
Required Reading
CUBA, chapters 5 and 6
Planning and Managing the Campus Facilities Portfolio, pages 29-65

Class Activity
Lecture, small group discussion, remaining paper presentations and discussion

Class 5—April 27
Budgeting in Higher Education Institutions

Required Reading
CUBA, chapter 4
College & University Budgeting, read the entire book
Mannix, Equity, Equality, or Need? The Effects of Organizational Culture on the
Allocation of Benefits and Burdens.

Class Activity
Lecture, small group discussions
Be prepared to discuss the Mannix article!!!

Class 6—May 4
Audit Issues in Higher Education

Mid-term

Required Reading
CUBA, Chapter 22

Class Activity
Take mid-term
Lecture, small group discussion

Class 7—May 11
Risk Management in Higher Education

Required Reading
CUBA, Chapter 16

Class Activity
Lecture, small group discussion

Class 8—May 18
Debt Management

Required Reading
CUBA, chapter 10
Planning and Managing the Campus Facilities Portfolio, pages 97-114

Second paper is due – be prepared to lead class discussion

Class Activity
Lecture, paper presentations and class discussion

Class 9—May 25
Capital and Construction Management in Higher Education

Required Reading
CUBA, chapter 13
Planning and Managing the Campus Facilities Portfolio, pages 115-127

Class Activity
Lecture, small group discussion, presentation of remaining second papers

Class 10—June 1
Miscellaneous Business and Finance Issues and REVIEW

Required Reading
TBA in Class 9 if any

Class Activity
Lecture, review, discussion

Final Exam—June 8