Rachel Whitaker Source 5

A) Are there ways for Universities to save themselves from the danger of the 90/10 rule?

B) "Strategic Considerations for New Income." ASHE Higher Education Report 41.1 (2014): 97-109. Education Full Text. Web. 8 Mar. 2016.

There are six types of budgeting: incremental, zero-based, activity-based, responsibility center management, centralized, and performance-based. Although some of these are better than others, they take a lot more time and resources to implement. Each type of budgeting does have negative sides. Though some might believe that decentralizing the budget would be beneficial, centralized budget means that knowledgable administrations can make better decisions about what to do with the money they have. RCM and performance-based are the most promising. By using creative budgeting methods, colleges on the brink of closing can save their institutions.

A possible solution finally arises. Different types of budgeting to fix gaps in federal aid. There are pros and cons, of course, but each university knows the state in which it is in, so finding the best budget for them out of six should be relatively easy. It would be great for colleges and universities to be able to keep their tuition low because of these budgets and allow federal aid not to scare them with the 90/10 rule

As this coincides with my other articles, this is definitely team higher education, in a way. It points out that there are ways for higher education to get on track and not be the bad guys in the situation. Policymakers don't even have to play a part in this at all. Universities can do as they please under the guidance of these budgets and everyone will win.

Further questions:
What budgeting methods are the most successful colleges using? Can Universities in danger of breaking 90/10 use these methods to drag themselves out of danger?  If these models exist, why are universities still raising tuition?