Conceptualizing budget strategies for cutback management during a period of severe fiscal constraint at a major research university: Model development and a case study test

Through a literature review, the critical components of a conceptual budget model designed to accommodate fiscal retrenchment at major research universities are identified. These components form the columns of a criteria-strategies matrix. Using a major research university and its planning database as a case study, four budget retrenchment strategies are developed. Such strategies form the rows of the criteria-strategies matrix. The strategies include a proportional reduction scheme, a policy analysis scheme based on various parameters drawn from the university's planning database, and other policy analysis schemes based on different parameter weights for workload and political variables. Two panels of experts rated the extent to which the budget strategies satisfy the criteria of the conceptual budget model. One of the panels included representatives from the public research university referenced in the case study. The other panel included individuals from a private research university. Each panel was composed of three individuals representing three organizational levels. Various methods for ranking the strategy scores are used and conclusions are developed based on these scores. Statistical comparisons of the distributional aspects of the budget reduction strategies are made using gini coefficients and correlations. Major conclusions from the study are identified and a research agenda for the future is developed which stresses the need for change in current management information systems.