You are the administrator of the Adult Education Department at Blooming Park University, the largest university in the Twin Cities metro area. You will be creating the budget for your department. To prepare, you have to go to a budget meeting for the overall university, where you’ll hear about the current fiscal year — and how reality is corresponding to the assumptions in the budget.
What Can You Do?
Now that you understand the financial position facing the university, try your hand at making budget adjustments. Not every field is something you can change, of course – state appropriations, for example, are beyond your control. Typically, salaries and tuition are also fixed, or at least subject to either legislative (if a public university) or Board of Directors (in a private university) approval. You cannot count on that.
Modify what you can after considering the impact such a modification will have on operations and other fields. Remember, decreasing spending on sports, for example, will likely affect sport scholarships and, thus, possibly enrollment. Keep track of your reasoning for each change and, when finished, draft a memo outlining your recommended changes and the affects you envision. You must cut 5%.
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